Monosodium Glutamate From the People's Republic of China: Initiation of Circumvention Inquiry on the Antidumping Duty Order, 42425-42426 [2024-10642]

Download as PDF Federal Register / Vol. 89, No. 95 / Wednesday, May 15, 2024 / Notices Yvette Springer at Yvette.Springer@ bis.doc.gov no later than May 23, 2024. A limited number of seats will be available for the public session. Reservations are not accepted. To the extent that time permits, members of the public may present oral statements to the Committee. The public may submit written statements at any time before or after the meeting. However, to facilitate distribution of materials to the Committee members, the Committee suggests that members of the public forward their materials prior to the meeting to Ms. Springer via email. 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[FR Doc. 2024–10547 Filed 5–14–24; 8:45 am] BILLING CODE 3510–JT–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–992] Monosodium Glutamate From the People’s Republic of China: Initiation of Circumvention Inquiry on the Antidumping Duty Order Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: In response to a request from Ajinomoto Health & Nutrition North America, Inc. (AHN, a domestic interested party), the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether imports of monosodium glutamate (MSG) from Malaysia are circumventing the antidumping duty (AD) order on MSG from the People’s Republic of China (China). lotter on DSK11XQN23PROD with NOTICES1 AGENCY: DATES: Applicable May 15, 2024. FOR FURTHER INFORMATION CONTACT: Jacob Saude, AD/CVD Operations, VerDate Sep<11>2014 19:12 May 14, 2024 Jkt 262001 Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–0981. SUPPLEMENTARY INFORMATION: Background On March 25, 2024, pursuant to section 781(b) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.226(c), AHN filed a circumvention inquiry request alleging that MSG finished in Malaysia using glutamic acid produced in China, and subsequently exported from Malaysia to the United States is circumventing the AD order on MSG from China 1 and, accordingly, should be included within the scope of the Order.2 On April 24, 2024, we extended the deadline to initiate this circumvention inquiry in accordance with 19 CFR 351.226(d)(1).3 Scope of the Order The product covered by this Order is MSG, whether or not blended or in solution with other products. Merchandise covered by the scope of this Order is currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheading 2922.42.1000. Merchandise subject to the Order may also enter under HTSUS subheadings 2922.42.5000, 2103.90.7200, 2103.90.7400, 2103.90.7800, 2103.90.8000, and 2103.90.9091. The HTSUS subheadings are provided for convenience and customs purposes; however, the written description of the scope is dispositive. For a full description of the scope of the Order, see the Initiation Checklist.4 Merchandise Subject to the Circumvention Inquiry The circumvention inquiry covers MSG finished in Malaysia using glutamic acid produced in China and subsequently exported from Malaysia to the United States. Initiation of Circumvention Inquiry Section 351.226(d) of Commerce’s regulations states that if Commerce 1 See Monosodium Glutamate from the People’s Republic of China: Second Amended Final Determination of Sales at Less Than Fair Value and Amended Antidumping Order, 80 FR 487 (January 6, 2015) (Order). 2 See AHN’s Letter, ‘‘MSG from China: Circumvention Inquiry Request,’’ dated March 25, 2024 (Circumvention Inquiry Request). 3 See Memorandum, ‘‘Extension of Time to Determine Whether to Initiate Circumvention Inquiry,’’ dated April 24, 2024. 4 See Checklist, ‘‘Malaysia Assembly Circumvention Initiation Checklist,’’ dated concurrently with, and hereby adopted by, this notice (Initiation Checklist). PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 42425 determines that a request for a circumvention inquiry satisfies the requirements of 19 CFR 351.226(c), then Commerce ‘‘will accept the request and initiate a circumvention inquiry.’’ Section 351.226(c)(1) of Commerce’s regulations, in turn, requires that each request for a circumvention inquiry allege ‘‘that the elements necessary for a circumvention determination under section 781 of the Act exist’’ and be ‘‘accompanied by information reasonably available to the interested party supporting these allegations.’’ AHN allege circumvention pursuant to section 781(b) of the Act (merchandise completed or assembled in other foreign countries). Section 781(b)(1) of the Act provides that Commerce may find circumvention of an order when merchandise of the same class or kind subject to the order is completed or assembled in a foreign country other than the country to which the order applies. In conducting a circumvention inquiry, under section 781(b)(1) of the Act, Commerce relies on the following criteria: (A) merchandise imported into the United States is of the same class or kind as any merchandise produced in a foreign country that is the subject of an AD or countervailing duty (CVD) order; (B) before importation into the United States, such imported merchandise is completed or assembled in another foreign country from merchandise which is subject to the order or is produced in the foreign country that is subject to the order; (C) the process of assembly or completion in the foreign country referred to in section (B) is minor or insignificant; (D) the value of the merchandise produced in the foreign country to which the AD or CVD order applies is a significant portion of the total value of the merchandise exported to the United States; and (E) the administering authority determines that action is appropriate to prevent evasion of such order. In determining whether the process of assembly or completion in a foreign country is minor or insignificant under section 781(b)(1)(C) of the Act, section 781(b)(2) of the Act directs Commerce to consider: (A) the level of investment in the foreign country; (B) the level of research and development in the foreign country; (C) the nature of the production process in the foreign country; (D) the extent of production facilities in the foreign country; and (E) whether or not the value of processing performed in the foreign country represents a small proportion of the value of the merchandise imported into the United States. However, no single factor, by itself, controls Commerce’s E:\FR\FM\15MYN1.SGM 15MYN1 42426 Federal Register / Vol. 89, No. 95 / Wednesday, May 15, 2024 / Notices determination of whether the process of assembly or completion in a foreign country is minor or insignificant.5 Accordingly, it is Commerce’s practice to evaluate each of these five factors as they exist in the foreign country, depending on the totality of the circumstances of the particular circumvention inquiry.6 In addition, section 781(b)(3) of the Act sets forth additional factors to consider in determining whether to include merchandise assembled or completed in a foreign country within the scope of an AD or CVD order. Specifically, Commerce shall take into account such factors as: (A) the pattern of trade, including sourcing patterns; (B) whether the manufacturer or exporter of the merchandise that was shipped to the foreign country is affiliated with the person who, in the foreign country, uses the merchandise to complete or assemble the merchandise which is subsequently imported into the United States; and (C) whether imports of the merchandise into the foreign country have increased after the initiation of the investigation that resulted in the issuance of such order. Analysis lotter on DSK11XQN23PROD with NOTICES1 Based on our analysis of AHN’s circumvention inquiry request, we determine that AHN has satisfied the criteria under 19 CFR 351.226(c), and thus, pursuant to 19 CFR 351.226(d)(1)(iii), we have accepted the request and are initiating the requested circumvention inquiry of the Order. For a full discussion of the basis for our decision to initiate the requested circumvention inquiry, see the Initiation Checklist. As explained in the Initiation Checklist, the information provided by AHN warrants initiating this circumvention inquiry on a countrywide basis. Commerce has taken this approach in prior circumvention inquiries, where the facts warranted initiation on a country-wide basis.7 5 See Statement of Administrative Action Accompanying the Uruguay Round Agreements Act, H.R. Doc. 103–316, Vol. 1 (1994), at 893. 6 See Uncovered Innerspring Units from the People’s Republic of China: Final Affirmative Determination of Circumvention of the Antidumping Duty Order, 83 FR 65626 (December 21, 2018), and accompanying Issues and Decision Memorandum at 4. 7 See, e.g., Hydrofluorocarbon Blends from the People’s Republic of China: Initiation of Circumvention Inquiry on the Antidumping Duty Order, 88 FR 74150 (October 30, 2023); see also Hydrofluorocarbon Blends from the People’s Republic of China: Initiation of Circumvention Inquiries on the Antidumping Duty Order, 88 FR 43275 (July 7, 2023); Certain Corrosion-Resistant Steel Products from the Republic of Korea and Taiwan: Initiation of Anti-Circumvention Inquiries on the Antidumping Duty and Countervailing Duty VerDate Sep<11>2014 19:12 May 14, 2024 Jkt 262001 Consistent with the approach in the prior circumvention inquiries that were initiated on a country-wide basis, Commerce intends to issue questionnaires to solicit information from producers and exporters in Malaysia concerning their shipments to the United States and the origin of glutamic acid being further processed into MSG (i.e., the merchandise subject to the Order). Respondent Selection Commerce intends to base respondent selection on U.S. Customs and Border Protection (CBP) data. Commerce intends to place the CBP data on the record within five days of the publication of this initiation notice. Comments regarding the CBP data and respondent selection should be submitted within seven days after placement of the CBP data on the record of the inquiry. Commerce intends to establish a schedule for questionnaire responses after respondent selection. A company’s failure to completely respond to Commerce’s requests for information may result in the application of partial or total facts available, pursuant to section 776(a) of the Act, which may include adverse inferences, pursuant to section 776(b) of the Act. Suspension of Liquidation Pursuant to 19 CFR 351.226(l)(1), Commerce intends to notify CBP of this initiation and direct CBP to continue the suspension of liquidation of entries of products subject to this circumvention inquiry that were already subject to the suspension of liquidation under the Order and to apply the cash deposit rates that would be applicable if the products were determined to be covered by the scope of the Order. Should Commerce issue affirmative preliminary or final circumvention determinations, Commerce will follow the suspension of liquidation rules under 19 CFR 351.226(l)(2)–(4). Notification to Interested Parties In accordance with 19 CFR 351.226(d) and section 781(b) of the Act, Commerce Orders, 83 FR 37785 (August 2, 2018); Carbon Steel Butt-Weld Pipe Fittings from the People’s Republic of China: Initiation of Anti-Circumvention Inquiry on the Antidumping Duty Order, 82 FR 40556, 40560 (August 25, 2017) (stating at initiation that Commerce would evaluate the extent to which a country-wide finding applicable to all exports might be warranted); and Certain CorrosionResistant Steel Products from the People’s Republic of China: Initiation of Anti-Circumvention Inquiries on the Antidumping Duty and Countervailing Duty Orders, 81 FR 79454, 79458 (November 14, 2016) (stating at initiation that Commerce would evaluate the extent to which a country-wide finding applicable to all exports might be warranted). PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 determines that AHN’s request for a circumvention inquiry satisfies the requirements of 19 CFR 351.226(c). Accordingly, Commerce is notifying all interested parties of the initiation of this circumvention inquiry to determine whether MSG finished in Malaysia using glutamic acid produced in China, and subsequently exported from Malaysia to the United States is circumventing the Order. In addition, we have included a description of the products that are the subject to this inquiry and an explanation of Commerce’s decision to initiate this inquiry as provided in the accompanying Initiation Checklist.8 In accordance with 19 CFR 351.226(e)(1), Commerce intends to issue its preliminary circumvention determination no later than 150 days from the date of publication of the notice of initiation of this circumvention inquiry in the Federal Register. This notice is published in accordance with section 781(b) of the Act, and 19 CFR 351.226(d)(1)(iii). Dated: May 9, 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. [FR Doc. 2024–10642 Filed 5–14–24; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–162, A–201–862, A–337–808] Certain Glass Wine Bottles From Chile, the People’s Republic of China, and Mexico: Postponement of Preliminary Determinations in the Less-Than-FairValue Investigations Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable May 15, 2024. FOR FURTHER INFORMATION CONTACT: Joshua Weiner (Chile), Carolyn Adie (the People’s Republic of China (China)), and Elizabeth Bremer (Mexico), AD/CVD Operations, Offices I, VI, and IV, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–3902, (202) 482–3150 and (202) 482- 4987, respectively. SUPPLEMENTARY INFORMATION: AGENCY: 8 See E:\FR\FM\15MYN1.SGM Initiation Checklist at 4 and 6. 15MYN1

Agencies

[Federal Register Volume 89, Number 95 (Wednesday, May 15, 2024)]
[Notices]
[Pages 42425-42426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-10642]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-992]


Monosodium Glutamate From the People's Republic of China: 
Initiation of Circumvention Inquiry on the Antidumping Duty Order

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

SUMMARY: In response to a request from Ajinomoto Health & Nutrition 
North America, Inc. (AHN, a domestic interested party), the U.S. 
Department of Commerce (Commerce) is initiating a country-wide 
circumvention inquiry to determine whether imports of monosodium 
glutamate (MSG) from Malaysia are circumventing the antidumping duty 
(AD) order on MSG from the People's Republic of China (China).

DATES: Applicable May 15, 2024.

FOR FURTHER INFORMATION CONTACT: Jacob Saude, AD/CVD Operations, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230; telephone: (202) 482-0981.

SUPPLEMENTARY INFORMATION:

Background

    On March 25, 2024, pursuant to section 781(b) of the Tariff Act of 
1930, as amended (the Act), and 19 CFR 351.226(c), AHN filed a 
circumvention inquiry request alleging that MSG finished in Malaysia 
using glutamic acid produced in China, and subsequently exported from 
Malaysia to the United States is circumventing the AD order on MSG from 
China \1\ and, accordingly, should be included within the scope of the 
Order.\2\ On April 24, 2024, we extended the deadline to initiate this 
circumvention inquiry in accordance with 19 CFR 351.226(d)(1).\3\
---------------------------------------------------------------------------

    \1\ See Monosodium Glutamate from the People's Republic of 
China: Second Amended Final Determination of Sales at Less Than Fair 
Value and Amended Antidumping Order, 80 FR 487 (January 6, 2015) 
(Order).
    \2\ See AHN's Letter, ``MSG from China: Circumvention Inquiry 
Request,'' dated March 25, 2024 (Circumvention Inquiry Request).
    \3\ See Memorandum, ``Extension of Time to Determine Whether to 
Initiate Circumvention Inquiry,'' dated April 24, 2024.
---------------------------------------------------------------------------

Scope of the Order

    The product covered by this Order is MSG, whether or not blended or 
in solution with other products. Merchandise covered by the scope of 
this Order is currently classified in the Harmonized Tariff Schedule of 
the United States (HTSUS) at subheading 2922.42.1000. Merchandise 
subject to the Order may also enter under HTSUS subheadings 
2922.42.5000, 2103.90.7200, 2103.90.7400, 2103.90.7800, 2103.90.8000, 
and 2103.90.9091. The HTSUS subheadings are provided for convenience 
and customs purposes; however, the written description of the scope is 
dispositive. For a full description of the scope of the Order, see the 
Initiation Checklist.\4\
---------------------------------------------------------------------------

    \4\ See Checklist, ``Malaysia Assembly Circumvention Initiation 
Checklist,'' dated concurrently with, and hereby adopted by, this 
notice (Initiation Checklist).
---------------------------------------------------------------------------

Merchandise Subject to the Circumvention Inquiry

    The circumvention inquiry covers MSG finished in Malaysia using 
glutamic acid produced in China and subsequently exported from Malaysia 
to the United States.

Initiation of Circumvention Inquiry

    Section 351.226(d) of Commerce's regulations states that if 
Commerce determines that a request for a circumvention inquiry 
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will 
accept the request and initiate a circumvention inquiry.'' Section 
351.226(c)(1) of Commerce's regulations, in turn, requires that each 
request for a circumvention inquiry allege ``that the elements 
necessary for a circumvention determination under section 781 of the 
Act exist'' and be ``accompanied by information reasonably available to 
the interested party supporting these allegations.'' AHN allege 
circumvention pursuant to section 781(b) of the Act (merchandise 
completed or assembled in other foreign countries).
    Section 781(b)(1) of the Act provides that Commerce may find 
circumvention of an order when merchandise of the same class or kind 
subject to the order is completed or assembled in a foreign country 
other than the country to which the order applies. In conducting a 
circumvention inquiry, under section 781(b)(1) of the Act, Commerce 
relies on the following criteria: (A) merchandise imported into the 
United States is of the same class or kind as any merchandise produced 
in a foreign country that is the subject of an AD or countervailing 
duty (CVD) order; (B) before importation into the United States, such 
imported merchandise is completed or assembled in another foreign 
country from merchandise which is subject to the order or is produced 
in the foreign country that is subject to the order; (C) the process of 
assembly or completion in the foreign country referred to in section 
(B) is minor or insignificant; (D) the value of the merchandise 
produced in the foreign country to which the AD or CVD order applies is 
a significant portion of the total value of the merchandise exported to 
the United States; and (E) the administering authority determines that 
action is appropriate to prevent evasion of such order.
    In determining whether the process of assembly or completion in a 
foreign country is minor or insignificant under section 781(b)(1)(C) of 
the Act, section 781(b)(2) of the Act directs Commerce to consider: (A) 
the level of investment in the foreign country; (B) the level of 
research and development in the foreign country; (C) the nature of the 
production process in the foreign country; (D) the extent of production 
facilities in the foreign country; and (E) whether or not the value of 
processing performed in the foreign country represents a small 
proportion of the value of the merchandise imported into the United 
States. However, no single factor, by itself, controls Commerce's

[[Page 42426]]

determination of whether the process of assembly or completion in a 
foreign country is minor or insignificant.\5\ Accordingly, it is 
Commerce's practice to evaluate each of these five factors as they 
exist in the foreign country, depending on the totality of the 
circumstances of the particular circumvention inquiry.\6\
---------------------------------------------------------------------------

    \5\ See Statement of Administrative Action Accompanying the 
Uruguay Round Agreements Act, H.R. Doc. 103-316, Vol. 1 (1994), at 
893.
    \6\ See Uncovered Innerspring Units from the People's Republic 
of China: Final Affirmative Determination of Circumvention of the 
Antidumping Duty Order, 83 FR 65626 (December 21, 2018), and 
accompanying Issues and Decision Memorandum at 4.
---------------------------------------------------------------------------

    In addition, section 781(b)(3) of the Act sets forth additional 
factors to consider in determining whether to include merchandise 
assembled or completed in a foreign country within the scope of an AD 
or CVD order. Specifically, Commerce shall take into account such 
factors as: (A) the pattern of trade, including sourcing patterns; (B) 
whether the manufacturer or exporter of the merchandise that was 
shipped to the foreign country is affiliated with the person who, in 
the foreign country, uses the merchandise to complete or assemble the 
merchandise which is subsequently imported into the United States; and 
(C) whether imports of the merchandise into the foreign country have 
increased after the initiation of the investigation that resulted in 
the issuance of such order.

Analysis

    Based on our analysis of AHN's circumvention inquiry request, we 
determine that AHN has satisfied the criteria under 19 CFR 351.226(c), 
and thus, pursuant to 19 CFR 351.226(d)(1)(iii), we have accepted the 
request and are initiating the requested circumvention inquiry of the 
Order. For a full discussion of the basis for our decision to initiate 
the requested circumvention inquiry, see the Initiation Checklist. As 
explained in the Initiation Checklist, the information provided by AHN 
warrants initiating this circumvention inquiry on a country-wide basis. 
Commerce has taken this approach in prior circumvention inquiries, 
where the facts warranted initiation on a country-wide basis.\7\
---------------------------------------------------------------------------

    \7\ See, e.g., Hydrofluorocarbon Blends from the People's 
Republic of China: Initiation of Circumvention Inquiry on the 
Antidumping Duty Order, 88 FR 74150 (October 30, 2023); see also 
Hydrofluorocarbon Blends from the People's Republic of China: 
Initiation of Circumvention Inquiries on the Antidumping Duty Order, 
88 FR 43275 (July 7, 2023); Certain Corrosion-Resistant Steel 
Products from the Republic of Korea and Taiwan: Initiation of Anti-
Circumvention Inquiries on the Antidumping Duty and Countervailing 
Duty Orders, 83 FR 37785 (August 2, 2018); Carbon Steel Butt-Weld 
Pipe Fittings from the People's Republic of China: Initiation of 
Anti-Circumvention Inquiry on the Antidumping Duty Order, 82 FR 
40556, 40560 (August 25, 2017) (stating at initiation that Commerce 
would evaluate the extent to which a country-wide finding applicable 
to all exports might be warranted); and Certain Corrosion-Resistant 
Steel Products from the People's Republic of China: Initiation of 
Anti-Circumvention Inquiries on the Antidumping Duty and 
Countervailing Duty Orders, 81 FR 79454, 79458 (November 14, 2016) 
(stating at initiation that Commerce would evaluate the extent to 
which a country-wide finding applicable to all exports might be 
warranted).
---------------------------------------------------------------------------

    Consistent with the approach in the prior circumvention inquiries 
that were initiated on a country-wide basis, Commerce intends to issue 
questionnaires to solicit information from producers and exporters in 
Malaysia concerning their shipments to the United States and the origin 
of glutamic acid being further processed into MSG (i.e., the 
merchandise subject to the Order).

Respondent Selection

    Commerce intends to base respondent selection on U.S. Customs and 
Border Protection (CBP) data. Commerce intends to place the CBP data on 
the record within five days of the publication of this initiation 
notice. Comments regarding the CBP data and respondent selection should 
be submitted within seven days after placement of the CBP data on the 
record of the inquiry.
    Commerce intends to establish a schedule for questionnaire 
responses after respondent selection. A company's failure to completely 
respond to Commerce's requests for information may result in the 
application of partial or total facts available, pursuant to section 
776(a) of the Act, which may include adverse inferences, pursuant to 
section 776(b) of the Act.

Suspension of Liquidation

    Pursuant to 19 CFR 351.226(l)(1), Commerce intends to notify CBP of 
this initiation and direct CBP to continue the suspension of 
liquidation of entries of products subject to this circumvention 
inquiry that were already subject to the suspension of liquidation 
under the Order and to apply the cash deposit rates that would be 
applicable if the products were determined to be covered by the scope 
of the Order. Should Commerce issue affirmative preliminary or final 
circumvention determinations, Commerce will follow the suspension of 
liquidation rules under 19 CFR 351.226(l)(2)-(4).

Notification to Interested Parties

    In accordance with 19 CFR 351.226(d) and section 781(b) of the Act, 
Commerce determines that AHN's request for a circumvention inquiry 
satisfies the requirements of 19 CFR 351.226(c). Accordingly, Commerce 
is notifying all interested parties of the initiation of this 
circumvention inquiry to determine whether MSG finished in Malaysia 
using glutamic acid produced in China, and subsequently exported from 
Malaysia to the United States is circumventing the Order. In addition, 
we have included a description of the products that are the subject to 
this inquiry and an explanation of Commerce's decision to initiate this 
inquiry as provided in the accompanying Initiation Checklist.\8\ In 
accordance with 19 CFR 351.226(e)(1), Commerce intends to issue its 
preliminary circumvention determination no later than 150 days from the 
date of publication of the notice of initiation of this circumvention 
inquiry in the Federal Register.
---------------------------------------------------------------------------

    \8\ See Initiation Checklist at 4 and 6.
---------------------------------------------------------------------------

    This notice is published in accordance with section 781(b) of the 
Act, and 19 CFR 351.226(d)(1)(iii).

    Dated: May 9, 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.
[FR Doc. 2024-10642 Filed 5-14-24; 8:45 am]
BILLING CODE 3510-DS-P

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