2,4-Dichlorophenoxyacetic Acid From the People's Republic of China and India: Initiation of Less-Than-Fair-Value Investigations, 34200-34205 [2024-09271]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 89, Number 84 (Tuesday, April 30, 2024)]
[Notices]
[Pages 34200-34205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-09271]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-160, A-533-922]


2,4-Dichlorophenoxyacetic Acid From the People's Republic of 
China and India: Initiation of Less-Than-Fair-Value Investigations

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


DATES: Applicable April 23, 2024.

FOR FURTHER INFORMATION CONTACT: Alexander Cipolla (the People's 
Republic of China (China)) at (202) 482-4956; and Melissa Porpotage 
(India) at (202) 482-1413; AD/CVD Operations, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

The Petitions

    On March 14, 2024, the U.S. Department of Commerce (Commerce) 
received antidumping duty (AD) petitions concerning imports of 2,4-
dichlorophenoxyacetic acid (2,4-D) from China and India filed in proper 
form on behalf of Corteva Agriscience LLC (the petitioner) \1\ a 
domestic producer of 2,4-D. These AD Petitions were accompanied by 
countervailing duty (CVD) petitions concerning imports of 2,4-D from 
China and India.\2\ On April 3, 2024, after considering comments 
regarding industry support, Commerce extended the initiation deadline 
by 20 days to further examine the issue of industry support, because it 
was not clear from the Petitions whether the industry support criteria 
had been met.\3\
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    \1\ See Petitioner's Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties,'' dated March 14, 2024 (the 
Petitions).
    \2\ Id.
    \3\ See Notice of Extension of the Deadline for Determining the 
Adequacy of the Antidumping and Countervailing Duty Petitions: 2,4-
Dichlorophenoxyacetic Acid from the People's Republic of China and 
India, 89 FR 24431, 24432 (April 8, 2024).
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    Between March 18 and April 4, 2024, Commerce requested supplemental 
information pertaining to certain aspects of the Petitions in separate 
supplemental questionnaires.\4\ The petitioner filed responses to the 
supplemental questionnaires between March 20 and April 9, 2024.\5\
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    \4\ See Commerce's Letter, ``Supplemental Questions,'' dated 
March 18, 2024 (General Issues Questionnaire); see also Commerce's 
Letters, ``Supplemental Questions,'' dated March 18, 2024 (Country-
Specific Supplemental Questionnaires); Memoranda, ``Phone Call,'' 
dated March 26, 2024 (March 26 Memorandum), and April 4, 2024, 
respectively; and Commerce's Letter, ``Supplemental Questions 
Pertaining to Industry Support,'' dated April 4, 2024 (Industry 
Support Supplemental Questionnaire).
    \5\ See Petitioner's Letter, ``General Issues and Injury 
Questionnaire Response,'' dated March 20, 2024 (First General Issues 
Supplement); see also Petitioner's Letter, ``China Antidumping 
Supplemental Questionnaire Response,'' dated March 20, 2024; 
Petitioner's Letter, ``India Antidumping Supplemental Questionnaire 
Response,'' dated March 20, 2024; Petitioner's Letter, ``Scope 
Supplemental Questionnaire Response,'' dated March 27, 2024 (Second 
General Issues Supplement); and Petitioner's Letter, ``Supplemental 
Questions on Industry Support,'' dated April 9, 2024 (Industry 
Support Supplement).
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    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of 2,4-D from 
China and India are being, or are likely to be, sold in the United 
States at less than fair value (LTFV) within the meaning of section 731 
of the Act, and that imports of such products are materially injuring, 
or threatening material injury to, the 2,4-D industry in the United 
States. Consistent with section 732(b)(1) of the Act, the Petitions 
were accompanied by information reasonably available to the petitioner 
supporting its allegations.
    Commerce finds that the petitioner filed the Petitions on behalf of 
the domestic industry, because the petitioner is an interested party, 
as defined in section 771(9)(C) of the Act. Commerce also finds that 
the petitioner demonstrated sufficient industry support for the 
initiation of the requested LTFV investigations.\6\
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    \6\ See ``Determination of Industry Support for the Petitions'' 
section, infra.
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Periods of Investigation

    Because the Petitions were filed on March 14, 2024, pursuant to 19 
CFR 351.204(b)(1), the period of investigation (POI) for the India LTFV 
investigation is January 1, 2023, through December 31, 2023. Because 
China is a non-market economy (NME) country, pursuant to 19 CFR 
351.204(b)(1), the POI for the China LTFV investigation is July 1, 
2023, through December 31, 2023.

Scope of the Investigations

    The product covered by these investigations is 2,4-D from China and 
India. For a full description of the scope of these investigations, see 
the appendix to this notice.

Comments on the Scope of the Investigations

    Between March 18 and April 4, 2024, Commerce requested information 
and clarification from the petitioner regarding the proposed scope to 
ensure

[[Page 34201]]

that the scope language in the Petitions is an accurate reflection of 
the products for which the domestic industry is seeking relief.\7\ 
Between March 20 and April 9, 2024, the petitioner provided 
clarifications and/or revised the scope.\8\ The description of 
merchandise covered by these investigations, as described in the 
appendix to this notice, reflects these clarifications.
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    \7\ See General Issues Questionnaire; see also March 26 
Memorandum; and Industry Support Supplemental Questionnaire.
    \8\ See First General Issues Supplement at 1-3 and Exhibit S-I-
4; see also Second General Issues Supplement at 1-2; and Industry 
Support Supplement at 1.
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    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (i.e., scope).\9\ Commerce will consider all scope 
comments received from interested parties and, if necessary, will 
consult with interested parties prior to the issuance of the 
preliminary determinations. If scope comments include factual 
information,\10\ all such factual information should be limited to 
public information. To facilitate preparation of its questionnaires, 
Commerce requests that scope comments be submitted by 5:00 p.m. Eastern 
Time (ET) on May 13, 2024, which is 20 calendar days from the signature 
date of this notice.\11\ Any rebuttal comments, which may include 
factual information, must be filed by 5:00 p.m. ET on May 23, 2024, 
which is 10 calendar days from the initial comment deadline.
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    \9\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble); see also 19 CFR 
351.312.
    \10\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \11\ See 19 CFR 351.303(b)(1).
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    Commerce requests that any factual information that parties 
consider relevant to the scope of these investigations be submitted 
during that period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigations may be relevant, the party must contact Commerce and 
request permission to submit the additional information. All scope 
comments must be filed simultaneously on the records of the concurrent 
LTFV and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS), unless an exception 
applies.\12\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
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    \12\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance: Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on using ACCESS 
can be found at https://access.trade.gov/help.aspx and a handbook 
can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
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Comments on Product Characteristics

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of 2,4-D to be reported in 
response to Commerce's AD questionnaires. This information will be used 
to identify the key physical characteristics of the subject merchandise 
in order to report the relevant factors of production (FOP) or cost of 
production (COP) accurately, as well as to develop appropriate product 
comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) general product 
characteristics; and (2) product comparison criteria. We note that it 
is not always appropriate to use all product characteristics as product 
comparison criteria. We base product comparison criteria on meaningful 
commercial differences among products. In other words, although there 
may be some physical product characteristics utilized by manufacturers 
to describe 2,4-D, it may be that only a select few product 
characteristics take into account commercially meaningful physical 
characteristics. In addition, interested parties may comment on the 
order in which the physical characteristics should be used in matching 
products. Generally, Commerce attempts to list the most important 
physical characteristics first and the least important characteristics 
last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. ET on May 13, 2024, 
which is 20 calendar days from the signature date of this notice.\13\ 
Any rebuttal comments must be filed by 5:00 p.m. ET on May 23, 2024, 
which is 10 calendar days from the initial comment deadline. All 
comments and submissions to Commerce must be filed electronically using 
ACCESS, as explained above, on the record of each of the LTFV 
investigations.
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    \13\ See 19 CFR 351.303(b)(1).
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Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(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 732(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, Commerce 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 to poll the ``industry.''
    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 Commerce to look to producers and workers who produce the 
domestic like product. The U.S. 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 Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\14\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce'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.\15\
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    \14\ See section 771(10) of the Act.
    \15\ 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)).
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    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

[[Page 34202]]

investigation under this title.'' 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 petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigations.\16\ Based on our analysis of the information 
submitted on the record, we have determined that 2,4-D, as defined in 
the scope, constitutes a single domestic like product, and we have 
analyzed industry support in terms of that domestic like product.\17\
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    \16\ See Petitions at Volume I (pages 11-16 and Exhibits I-5, I-
6 and I-9); see also First General Issues Supplement at 3-6.
    \17\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see Checklists, ``Antidumping Duty Investigation Initiation 
Checklists: 2,4-Dichlorophenoxyacetic Acid from the People's 
Republic of China and India,'' dated concurrently with, and hereby 
adopted by, this notice (Country-Specific AD Initiation Checklists) 
at Attachment II, Analysis of Industry Support for the Antidumping 
and Countervailing Duty Petitions Covering 2,4-Dichlorophenoxyacetic 
Acid from the People's Republic of China and India (Attachment II). 
These checklists are on file electronically via ACCESS.
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    In determining whether the petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petitions, and supplements thereto, with reference to 
the domestic like product as defined in the ``Scope of the 
Investigations,'' in the appendix to this notice. To establish industry 
support, the petitioner provided its own production of the domestic 
like product in 2023 and compared this to the estimated total 
production of the domestic like product for the entire domestic 
industry.\18\ We relied on data provided by the petitioner for purposes 
of measuring industry support.\19\
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    \18\ See Industry Support Supplement at 1-6 and Exhibits S-I-21, 
S-I-23, S-I-24, and S-I-29.
    \19\ Id. at 1-6 and Exhibits S-I-21, S-I-23, S-I-24, and S-I-29. 
For further discussion, see Attachment II of the Country-Specific AD 
Initiation Checklists.
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    On March 29, 2024, we received comments on industry support from 
Nufarm Americas Inc. (Nufarm), a U.S. importer and converter of 2,4-
D.\20\ On April 2, 2024, the petitioner responded to the letter from 
Nufarm.\21\ On April 11, 2024, we received comments on industry support 
from Drexel Chemical Company (Drexel), a U.S. importer and converter of 
2,4-D.\22\
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    \20\ See Nufarm's Letter, ``Nufarm's Request for the Department 
to Defer Initiation for Lack of Standing and Poll the Industry,'' 
dated March 29, 2024.
    \21\ See Petitioner's Letter, ``Petitioner's Response to 
Industry Comments,'' dated April 2, 2024 (Petitioner's Response).
    \22\ See Drexel's Letter, ``Information Submitted by Drexel 
Chemical Company to Rebut, Clarify or Correct Corteva's April 9, 
2024 Response to Supplemental Questions on Industry Support,'' dated 
April 11, 2024.
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    Our review of the data provided in the Petitions, the First General 
Issues Supplement, the Second General Issues Supplement, the letters 
from Nufarm and Drexel, the Petitioner's Response, the Industry Support 
Supplement, and other information readily available to Commerce 
indicates that the petitioner has established industry support for the 
Petitions.\23\ First, the Petitions 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, Commerce is not 
required to take further action in order to evaluate industry support 
(e.g., polling).\24\ Second, the domestic producers (or workers) have 
met the statutory criteria for industry support under section 
732(c)(4)(A)(i) of the Act because the domestic producers (or workers) 
who support the Petitions account for at least 25 percent of the total 
production of the domestic like product.\25\ Finally, the domestic 
producers (or workers) have met the statutory criteria for industry 
support under section 732(c)(4)(A)(ii) of the Act because the domestic 
producers (or workers) who support the Petitions 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 Petitions.\26\ Accordingly, Commerce determines that the Petitions 
were filed on behalf of the domestic industry within the meaning of 
section 732(b)(1) of the Act.\27\
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    \23\ See Attachment II of the Country-Specific AD Initiation 
Checklists.
    \24\ Id.; see also section 732(c)(4)(D) of the Act.
    \25\ See Attachment II of the Country-Specific AD Initiation 
Checklists.
    \26\ Id.
    \27\ Id.
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Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at LTFV. In addition, the petitioner alleges that 
subject imports exceed the negligibility threshold provided for under 
section 771(24)(A) of the Act.\28\
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    \28\ See Petitions at Volume I (page 17 and Exhibit I-11); see 
also First General Issues Supplement at 6 and Exhibit S-I-16.
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    The petitioner contends that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
underselling and price depression and/or suppression; declining 
profitability; declines in volume of production and capacity 
utilization; lost sales and revenues; lost market share; and the 
magnitude of the alleged dumping margins.\29\ We assessed the 
allegations and supporting evidence regarding material injury, threat 
of material injury, causation, as well as negligibility, and we have 
determined that these allegations are properly supported by adequate 
evidence and meet the statutory requirements for initiation.\30\
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    \29\ See Petitions at Volume I (pages 17-37 and Exhibits I-10 
through I-19); see also First General Issues Supplement at 6 and 
Exhibits S-I-16 and S-I-17.
    \30\ See Country-Specific AD Initiation Checklists at Attachment 
III, Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering 2,4-Dichlorophenoxyacetic Acid from the People's Republic 
of China and India.
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Allegations of Sales at LTFV

    The following is a description of the allegations of sales at LTFV 
upon which Commerce based its decision to initiate LTFV investigations 
of imports of 2,4-D from China and India. The sources of data for the 
deductions and adjustments relating to U.S. price and normal value (NV) 
are discussed in greater detail in the Country-Specific AD Initiation 
Checklists.

U.S. Price

    For China and India, the petitioner based export price (EP) on the 
average unit values derived from official import statistics for imports 
of 2,4-D from these countries into the United States during the 
POI.\31\ For each country, the petitioner made certain adjustments to 
U.S. price to calculate a net ex-factory U.S. price, where 
applicable.\32\
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    \31\ See Country-Specific AD Initiation Checklists.
    \32\ Id.
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Normal Value 33
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    \33\ In accordance with section 773(b)(2) of the Act, for the 
India investigation, Commerce will request information necessary to 
calculate the constructed value (CV) and COP to determine whether 
there are reasonable grounds to believe or suspect that sales of the 
foreign like product have been made at prices that represent less 
than the COP of the product.
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    For India, the petitioner stated that it was unable to obtain home 
market or third country pricing information for 2,4-D to use as a basis 
for NV.\34\ Therefore, for India, the petitioner calculated NV based on 
CV.\35\ For further discussion of CV, see the section

[[Page 34203]]

``Normal Value Based on Constructed Value,'' below.
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    \34\ See India AD Initiation Checklist.
    \35\ Id.
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    Commerce considers China to be an NME country.\36\ In accordance 
with section 771(18)(C)(i) of the Act, any determination that a foreign 
country is an NME country shall remain in effect until revoked by 
Commerce. Therefore, we continue to treat China as an NME country for 
purposes of the initiation of these investigations. Accordingly, we 
base NV on FOPs valued in a surrogate market economy country, in 
accordance with section 773(c) of the Act.
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    \36\ See, e.g., Certain Freight Rail Couplers and Parts Thereof 
from the People's Republic of China: Preliminary Affirmative 
Determination of Sales at Less Than Fair Value and Preliminary 
Affirmative Determination of Critical Circumstances, 88 FR 15372 
(March 13, 2023), and accompanying Preliminary Decision Memorandum 
at 5, unchanged in Certain Freight Rail Couplers and Parts Thereof 
from the People's Republic of China: Final Affirmative Determination 
of Sales at Less-Than-Fair Value and Final Affirmative Determination 
of Critical Circumstances, 88 FR 34485 (May 30, 2023); and Certain 
Frozen Fish Fillets from the Socialist Republic of Vietnam: Final 
Results, and Final Results of No Shipments of the Antidumping Duty 
Administrative Review; 2016-2017, 84 FR 18007 (April 29, 2019).
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    The petitioner claims that T[uuml]rkiye is an appropriate surrogate 
country for China because it is a market economy that is at a level of 
economic development comparable to that of China and is a significant 
producer of comparable merchandise.\37\ The petitioner provided 
publicly available information from T[uuml]rkiye to value all FOPs.\38\ 
Based on the information provided by the petitioner, we believe it is 
appropriate to use T[uuml]rkiye as a surrogate country for China to 
value all FOPs for initiation purposes.
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    \37\ See China AD Initiation Checklist.
    \38\ Id.
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    Interested parties will have the opportunity to submit comments 
regarding surrogate country selection and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs within 30 days before the scheduled 
date of the preliminary determination.

Factors of Production

    Because information regarding the volume of inputs consumed by 
Chinese producers/exporters was not reasonably available, the 
petitioner used product-specific consumption rates from a U.S. producer 
of 2,4-D as a surrogate to value Chinese manufacturers' FOPs.\39\ 
Additionally, the petitioner calculated factory overhead, selling, 
general, and administrative expenses (SG&A), and profit based on the 
experience of a Turkish producer of comparable merchandise for 
China.\40\
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    \39\ See China AD Initiation Checklist.
    \40\ Id.
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Normal Value Based on Constructed Value

    As noted above for India, the petitioner stated that it was unable 
to obtain home market or third-country prices for 2,4-D to use as a 
basis for NV. Therefore, for India, the petitioner calculated NV based 
on CV.\41\
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    \41\ See India AD Initiation Checklist.
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    Pursuant to section 773(e) of the Act, the petitioner calculated CV 
as the sum of the cost of manufacturing, SG&A, financial expenses, and 
profit.\42\ In calculating the cost of manufacturing, the petitioner 
relied on the production experience and input consumption rates of a 
U.S. producer of 2,4-D, valued using publicly available information 
applicable to India.\43\ In calculating SG&A, financial expenses, and 
profit ratios, the petitioner relied on the 2022-2023 financial 
statements of a producer of identical merchandise in India.\44\
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    \42\ Id.
    \43\ Id.
    \44\ Id.
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Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of 2,4-D from China and India are being, or are 
likely to be, sold in the United States at LTFV. Based on comparisons 
of EP to NV in accordance with sections 772 and 773 of the Act, the 
estimated dumping margins for 2,4-D for the countries covered by this 
initiation are as follows: (1) China--127.21 percent; and (2) India--
36.41 percent.\45\
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    \45\ See Country-Specific AD Initiation Checklists.
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Initiation of LTFV Investigations

    Based upon the examination of the Petitions and supplemental 
responses, we find that they meet the requirements of section 732 of 
the Act. Therefore, we are initiating LTFV investigations to determine 
whether imports of 2,4-D from China and India are being, or are likely 
to be, sold in the United States at LTFV. In accordance with section 
733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless postponed, we 
will make our preliminary determinations no later than 140 days after 
the date of these initiations.

Respondent Selection

India

    In the Petitions, the petitioner identified four companies in India 
as producers/exporters of 2,4-D.\46\ Following standard practice in 
LTFV investigations involving market economy countries, in the event 
Commerce determines that the number of companies is large and it cannot 
individually examine each company based upon Commerce's resources, 
where appropriate, Commerce intends to select mandatory respondents 
based on U.S. Customs and Border Protection (CBP) data for imports 
under the appropriate Harmonized Tariff Schedule of the United States 
(HTSUS) subheading(s) listed in the ``Scope of the Investigations,'' in 
the appendix.
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    \46\ See Petitions at Volume I (page 9 and Exhibit I-2); see 
also First General Issues Supplement at Exhibit S-I-2.
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    On March 29, 2024, Commerce released CBP data on imports of 2,4-D 
from India under administrative protective order (APO) to all parties 
with access to information protected by APO and indicated that 
interested parties wishing to comment on CBP data and/or respondent 
selection must do so within three business days of the publication date 
of the notice of initiation of these investigations.\47\ Comments must 
be filed electronically using ACCESS. An electronically filed document 
must be received successfully in its entirety via ACCESS by 5:00 p.m. 
ET on the specified deadline. Commerce will not accept rebuttal 
comments regarding the CBP data or respondent selection.
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    \47\ See Memorandum, ``Release of Data from U.S. Customs and 
Border Protection,'' dated March 29, 2024.
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    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on Commerce's website at https://www.trade.gov/administrative-protective-orders.

China

    In the Petitions, the petitioner named 12 companies in China as 
producers and/or exporters of 2,4-D.\48\ Our standard practice for 
respondent selection in AD investigations involving NME countries is to 
select respondents based on quantity and value (Q&V) questionnaires in 
cases where it has determined that the number of companies is large and 
it cannot individually examine each company based upon its resources. 
Therefore, considering the number of producers and/or exporters 
identified in the Petitions, Commerce will solicit Q&V information that 
can serve as a basis for

[[Page 34204]]

selecting exporters for individual examination in the event that 
Commerce determines that the number is large and decides to limit the 
number of respondents individually examined pursuant to section 
777A(c)(2) of the Act. Because there are 12 Chinese producers and/or 
exporters identified in the Petitions, Commerce has determined that it 
will issue Q&V questionnaires to each potential respondent for which 
the petitioner has provided a complete address.
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    \48\ See Petitions at Volume I (page 9 and Exhibit I-2); see 
also First General Issues Supplement at 1 and Exhibit S-I-2.
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    Commerce will post the Q&V questionnaire along with filing 
instructions on Commerce's website at https://www.trade.gov/ec-adcvd-case-announcements. Producers/exporters of 2,4-D from China that do not 
receive Q&V questionnaires may still submit a response to the Q&V 
questionnaire and can obtain a copy of the Q&V questionnaire from 
Commerce's website. Responses to the Q&V questionnaire must be 
submitted by the relevant Chinese producers/exporters no later than 
5:00 p.m. ET on May 7, 2024, which is two weeks from the signature date 
of this notice. All Q&V questionnaire responses must be filed 
electronically via ACCESS. An electronically filed document must be 
received successfully, in its entirety, by ACCESS no later than 5:00 
p.m. ET on the deadline noted above.
    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). As stated above, instructions 
for filing such applications may be found on Commerce's website at 
https://www.trade.gov/administrative-protective-orders.

Separate Rates

    In order to obtain separate rate status in an NME investigation, 
exporters and producers must submit a separate rate application. The 
specific requirements for submitting a separate rate application in an 
NME investigation are outlined in detail in the application itself, 
which is available on Commerce's website at https://access.trade.gov/Resources/nme/nme-sep-rate.html. The separate rate application will be 
due 30 days after publication of this initiation notice. Exporters and 
producers must file a timely separate rate application if they want to 
be considered for individual examination. Exporters and producers who 
submit a separate rate application and have been selected as mandatory 
respondents will be eligible for consideration for separate rate status 
only if they respond to all parts of Commerce's AD questionnaire as 
mandatory respondents. Commerce requires that companies from China 
submit a response both to the Q&V questionnaire and to the separate 
rate application by the respective deadlines to receive consideration 
for separate rate status. Companies not filing a timely Q&V 
questionnaire response will not receive separate rate consideration.

Use of Combination Rates

    Commerce will calculate combination rates for certain respondents 
that are eligible for a separate rate in an NME investigation. The 
Separate Rates and Combination Rates Bulletin states:

{w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that {Commerce{time}  will now 
assign in its NME investigation will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period 
of investigation. This practice applies both to mandatory 
respondents receiving an individually calculated separate rate as 
well as the pool of non-investigated firms receiving the {weighted 
average{time}  of the individually calculated rates. This practice 
is referred to as the application of ``combination rates'' because 
such rates apply to specific combinations of exporters and one or 
more producers. The cash-deposit rate assigned to an exporter will 
apply only to merchandise both exported by the firm in question and 
produced by a firm that supplied the exporter during the period of 
investigation.\49\
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    \49\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigation involving NME Countries,'' (April 
5, 2005) at 6 (emphasis added), available on Commerce's website at 
https://access.trade.gov/Resources/policy/bull05-1.pdf.
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Distribution of Copies of the Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petitions have been 
provided to the governments of China and India via ACCESS. To the 
extent practicable, we will attempt to provide a copy of the public 
version of the Petitions to each exporter named in the Petitions, as 
provided under 19 CFR 351.203(c)(2).

ITC Notification

    Commerce will notify the ITC of our initiation, as required by 
section 732(d) of the Act.

Preliminary Determinations by the ITC

    Typically, the ITC will preliminarily determine, within 45 days 
after the date on which the Petitions were filed, whether there is a 
reasonable indication that subject imports are materially injuring, or 
threatening material injury to, a U.S. industry.\50\ Here, due to 
Commerce's extension of the initiation decision deadline to further 
examine the issue of industry support for the Petitions, the ITC has 
extended the time for issuance of its preliminary determination for 
imports of 2,4-D from China and India. At this time, the ITC has 
indicated it will make its preliminary determination on or about May 
20, 2024. A negative ITC determination for either country will result 
in the investigation being terminated with respect to that country.\51\ 
Otherwise, these LTFV investigations will proceed according to 
statutory and regulatory time limits.
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    \50\ See section 733(a) of the Act.
    \51\ Id.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Section 351.301(b) of Commerce's 
regulations requires any party, when submitting factual information, to 
specify under which subsection of 19 CFR 351.102(b)(21) the information 
is being submitted \52\ and, if the information is submitted to rebut, 
clarify, or correct factual information already on the record, to 
provide an explanation identifying the information already on the 
record that the factual information seeks to rebut, clarify, or 
correct.\53\ Time limits for the submission of factual information are 
addressed in 19 CFR 351.301, which provides specific time limits based 
on the type of factual information being submitted. Interested parties 
should review the regulations prior to submitting factual information 
in these investigations.
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    \52\ See 19 CFR 351.301(b).
    \53\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation

    Section 773(e) of the Act addresses the concept of particular 
market situation (PMS) for purposes of CV, stating that ``if a 
particular market situation exists such that the cost of materials and 
fabrication or other processing of any kind does not accurately reflect 
the cost of production in the ordinary course of trade, the 
administering authority may use another calculation methodology under 
this subtitle or any other calculation methodology.'' When an 
interested

[[Page 34205]]

party submits a PMS allegation pursuant to section 773(e) of the Act 
(i.e., a cost-based PMS allegation), Commerce will respond to such a 
submission consistent with 19 CFR 351.301(c)(2)(v). If Commerce finds 
that a cost-based PMS exists under section 773(e) of the Act, then it 
will modify its margin calculations appropriately.
    Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v), set 
a deadline for the submission of cost-based PMS allegations and 
supporting factual information. However, in order to administer section 
773(e) of the Act, Commerce must receive PMS allegations and supporting 
factual information with enough time to consider the submission. Thus, 
should an interested party wish to submit a cost-based PMS allegation 
and supporting new factual information pursuant to section 773(e) of 
the Act, it must do so no later than 20 days after submission of a 
respondent's initial section D questionnaire response.
    We note that a PMS allegation filed pursuant to sections 
773(a)(1)(B)(ii)(III) or 773(a)(1)(C)(iii) of the Act (i.e., a sales-
based PMS allegation) must be filed within 10 days of submission of a 
respondent's initial section B questionnaire response, in accordance 
with 19 CFR 301(c)(2)(i) and 19 CFR 351.404(c)(2).

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by Commerce. In general, an extension request will 
be considered untimely if it is filed after the expiration of the time 
limit established under 19 CFR 351.301, or as otherwise specified by 
Commerce.\54\ For submissions that are due from multiple parties 
simultaneously, an extension request will be considered untimely if it 
is filed after 10:00 a.m. ET on the due date.\55\ Under certain 
circumstances, Commerce may elect to specify a different time limit by 
which extension requests will be considered untimely for submissions 
which are due from multiple parties simultaneously. In such a case, we 
will inform parties in a letter or memorandum of the deadline 
(including a specified time) by which extension requests must be filed 
to be considered timely. An extension request must be made in a 
separate, standalone submission; under limited circumstances we will 
grant untimely filed requests for the extension of time limits, where 
we determine, based on 19 CFR 351.302, that extraordinary circumstances 
exist. Parties should review Commerce's regulations concerning the 
extension of time limits and the Time Limits Final Rule prior to 
submitting factual information in these investigations.\56\
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    \54\ See 19 CFR 351.301; see also Extension of Time Limits; 
Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final 
Rule), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm.
    \55\ See Time Limits Final Rule at 57792.
    \56\ See 19 CFR 351.302; see also, e.g., Time Limits Final Rule.
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Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\57\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\58\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \57\ See section 782(b) of the Act.
    \58\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Additional 
information regarding the Final Rule is available at https://access.trade.gov/Resources/filing/.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. Parties wishing to participate 
in these investigations should ensure that they meet the requirements 
of 19 CFR 351.103(d) (e.g., by filing the required letter of 
appearance). Note that Commerce has modified certain of its 
requirements for serving documents containing business proprietary 
information and has made additional clarifications and corrections to 
its AD/CVD regulations.\59\
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    \59\ See Administrative Protective Order, Service, and Other 
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR 
67069 (September 29, 2023).
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    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act and 19 CFR 351.203(c).

    Dated: April 23, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix

Scope of the Investigations

    The merchandise covered by these investigations is 2,4-
dichlorophenoxyacetic acid (2,4-D) and its derivative products, 
including salt and ester forms of 2,4-D. 2,4-D has the Chemical 
Abstracts Service (CAS) registry number of 94-75-7 and the chemical 
formula C8H6 Cl2O3.
    Salt and ester forms of 2,4-D include 2,4-D sodium salt (CAS 
2702-72-9), 2,4-D diethanolamine salt (CAS 5742-19-8), 2,4-D 
dimethyl amine salt (CAS 2008-39-1), 2,4-D isopropylamine salt (CAS 
5742-17-6), 2,4-D tri-isopropanolamine salt (CAS 3234180-3), 2,4-D 
choline salt (CAS 1048373-72-3), 2,4-D butoxyethyl ester (CAS 1929-
733), 2,4-D 2-ethylhexylester (CAS 1928-43-4), and 2,4-D 
isopropylester (CAS 94-11-1). All 2,4-D, as well as the salt and 
ester forms of 2,4-D, is covered by the scope irrespective of 
purity, particle size, or physical form.
    The conversion of a 2,4-D salt or ester from 2,4-D acid, or the 
formulation of nonsubject merchandise with the subject 2,4-D, its 
salts, and its esters in the country of manufacture or in a third 
country does not remove the subject 2,4-D, its salts, or its esters 
from the scope. For any such formulations, only the 2,4-D, 2,4-D 
salt, and 2,4-D ester components of the mixture is covered by the 
scope of the investigations. Formulations of 2,4-D are products that 
are registered for end-use applications with the Environmental 
Protection Agency and contain a dispersion agent.
    The country of origin of any 2,4-D derivative salt or ester is 
determined by the country in which the underlying 2,4-D acid is 
produced. 2,4-D, its salts, and its esters are classified under 
Harmonized Tariff Schedule of the United States (HTSUS) subheading 
2918.99.2010. Subject merchandise, including the abovementioned 
formulations, may also be classified under HTSUS subheadings 
2922.12.0001, 2921.11.0000, 2921.19.6195, 2922.19.9690, 
3808.93.0050, and 3808.93.1400. The HTSUS subheadings and CAS 
registry numbers are provided for convenience and customs purposes. 
The written description of the scope of the investigations is 
dispositive.

[FR Doc. 2024-09271 Filed 4-29-24; 8:45 am]
BILLING CODE 3510-DS-P