Vanillin From the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation, 54424-54429 [2024-14460]
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Federal Register / Vol. 89, No. 126 / Monday, July 1, 2024 / Notices
allegations; (iii) publicly available
information to value factors of
production 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 31 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.32 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 this
investigation.
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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(c), 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
351.301.33 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. 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, Commerce 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; Commerce will
grant untimely filed requests for the
extension of time limits only in limited
cases where we determine, based on 19
CFR 351.302(c), that extraordinary
circumstances exist. Parties should
review Commerce’s regulations
concerning time limits for submission of
factual information prior to submitting
31 See
19 CFR 351.301(b).
19 CFR 351.301(b)(2).
33 See 19 CFR 351.302.
32 See
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factual information in this
investigation.34
Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.35
Parties must use the certification
formats provided in 19 CFR
351.303(g).36 Commerce intends to
reject factual submissions if the
submitting party does not comply with
the applicable certification
requirements.
Notification to Interested Parties
Interested parties must submit
applications for disclosure under
administrative protective order in
accordance with 19 CFR 351.305.
Parties wishing to participate in this
investigation should ensure that they
meet the requirements of 19 CFR
351.103(d) (e.g., by filing the required
letters of appearance). Note that
Commerce has amended certain of its
requirements pertaining to the service of
documents in 19 CFR 351.303(f).37
This notice is issued and published
pursuant to sections 702 and 777(i) of
the Act, and 19 CFR 351.203(c).
Dated: June 25, 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 Investigation
The merchandise covered by the
investigation is vanillin, with the molecular
formula C8H8O3 or C9H10O3. For purposes of
this investigation, vanillin consists of natural
vanillin, synthetic vanillin, bio-sourced
synthetic vanillin (biovanillin) (each also
known as 4-Hydroxy-3methoxybenzaldehyde), and ethylvanillin
(also known as 3-Ethoxy-4hydroxybenzaldehyde). Vanillin covered by
this investigation is a chemical compound
with the Chemical Abstracts Service (CAS)
number 121–33–5 or 121–32–4. Vanillin is
34 See 19 CFR 351.301; see also Extension of Time
Limits; Final Rule, 78 FR 57790 (September 20,
2013), and Regulations Improving and
Strengthening the Enforcement of Trade Remedies
Through the Administration of the Antidumping
and Countervailing Duty Laws, 89 FR 20766 (March
25, 2024).
35 See section 782(b) of the Act.
36 See Certification of Factual Information to
Import Administration During Antidumping and
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule); see also frequently asked
questions regarding the Final Rule, available at:
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
37 See Administrative Protective Order, Service,
and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069
(September 29, 2023).
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covered by the investigation regardless of
whether it is in a crystalline powder or
crystal form. Vanillin is covered by the scope
of the investigation, irrespective of purity,
particle size, or physical form.
Merchandise subject to the investigation is
specified within the Harmonized Tariff
Schedule of the United States (HTSUS) under
subheading 2912.41.0000 and 2912.42.0000.
The HTSUS subheadings and CAS registry
numbers are provided for convenience and
customs purposes only. The written
description of the merchandise covered by
the investigation is dispositive.
[FR Doc. 2024–14458 Filed 6–28–24; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–172]
Vanillin From the People’s Republic of
China: Initiation of Less-Than-FairValue Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable June 25, 2024.
FOR FURTHER INFORMATION CONTACT:
Dmitry Vladimirov, AD/CVD
Operations, Office I, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–0665.
SUPPLEMENTARY INFORMATION:
AGENCY:
The Petition
On June 5, 2024, the U.S. Department
of Commerce (Commerce) received an
antidumping duty (AD) petition
concerning imports of vanillin from the
People’s Republic of China (China) filed
in proper form on behalf of Solvay USA
LLC (the petitioner), a U.S. producer of
vanillin.1 The Petition was
accompanied by a countervailing duty
(CVD) petition concerning imports of
vanillin from China.2
Between June 7 and 17, 2024,
Commerce requested supplemental
information pertaining to certain aspects
of the Petition in supplemental
questionnaires.3 The petitioner
responded to Commerce’s supplemental
1 See Petitioner’s Letter, ‘‘Petitions for the
Imposition of Antidumping and Countervailing
Duties,’’ dated June 5, 2024 (the Petition).
2 Id.
3 See Commerce’s Letters, ‘‘Supplemental
Questions,’’ dated June 7, 2024 (First General Issues
Questionnaire); ‘‘Supplemental Questions,’’ dated
June 7, 2024; Supplemental Questions,’’ dated June
14, 2024; and ‘‘Supplemental Questions,’’ dated
June 14, 2024; see also Memorandum, ‘‘Phone Call
with Counsel to the Petitioner,’’ dated June 17, 2024
(June 17 Memorandum).
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questionnaires between June 11 and
June 19, 2024.4
In accordance with section 732(b) of
the Tariff Act of 1930, as amended (the
Act), the petitioner alleges that imports
of vanillin from China 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 vanillin industry
in the United States. Consistent with
section 732(b)(1) of the Act, the Petition
was accompanied by information
reasonably available to the petitioner
supporting its allegations.
Commerce finds that the petitioner
filed the Petition 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 investigation.5
Period of Investigation
Because the Petition was filed on June
5, 2024, and because China is a nonmarket economy (NME) country,
pursuant to 19 CFR 351.204(b)(1), the
period of investigation (POI) for the
China LTFV investigation is October 1,
2023, through March 31, 2024.
Scope of the Investigation
The product covered by this
investigation is vanillin from China. For
a full description of the scope of this
investigation, see the appendix to this
notice.
Comments on Scope of the Investigation
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Between June 7 and 17, 2024,
Commerce requested information and
clarification from the petitioner
regarding the proposed scope to ensure
that the scope language in the Petition
is an accurate reflection of the products
for which the domestic industry is
seeking relief.6 Between June 11 and 18,
2024, the petitioner provided
4 See Petitioner’s Letters, ‘‘Petitioner’s Response
to Supplemental Questions Regarding Common
Issues and Injury Volume I of the Petitions,’’ dated
June 11, 2024 (First General Issues Supplement);
see also ‘‘Petitioner’s Response to Supplemental
Questions Regarding Volume II of the Petitions,’’
dated June 13, 2024; ‘‘Petitioner’s Response to
Supplemental Questions Regarding Common Issues
and Injury Volume I of the Petitions,’’ dated June
18, 2024 (Second General Issues Supplement); and
‘‘Petitioner’s Response to Supplemental Questions
Regarding Volume II of the Petitions,’’ dated June
19, 2024.
5 See section on ‘‘Determination of Industry
Support for the Petition,’’ infra.
6 See First General Issues Questionnaire; see also
June 17 Memorandum.
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clarifications and revised the scope.7
The description of merchandise covered
by this investigation, as described in the
appendix to this notice, reflects these
clarifications.
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).8 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
determination. If scope comments
include factual information,9 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 July 15, 2024,
which is 20 calendar days from the
signature date of this notice. Any
rebuttal comments, which may include
factual information, and should also be
limited to public information, must be
filed by 5:00 p.m. ET on July 25, 2024,
which is 10 calendar days from the
initial comment deadline.
Commerce requests that any factual
information that parties consider
relevant to the scope of this
investigation be submitted during that
period. However, if a party subsequently
finds that additional factual information
pertaining to the scope of the
investigation 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.10 An
electronically filed document must be
7 See First General Issues Supplement at 2–4 and
Exhibits I–Supp–2 and I–Supp–3; see also Second
General Issues Supplement at 2–3.
8 See Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997)
(Preamble); see also 19 CFR 351.312.
9 See 19 CFR 351.102(b)(21) (defining ‘‘factual
information’’).
10 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.
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received successfully in its entirety by
the time and date it is due.
Comments on Product Characteristics
Commerce is providing interested
parties an opportunity to comment on
the appropriate physical characteristics
of vanillin 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)
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.
In order to consider the suggestions of
interested parties in developing and
issuing the AD questionnaire, all
product characteristics comments must
be filed by 5:00 p.m. ET on July 15,
2024, which is 20 calendar days from
the signature date of this notice.11 Any
rebuttal comments must be filed by 5:00
p.m. ET on July 25, 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 the
LTFV investigation.
Determination of Industry Support for
the Petition
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,
11 See
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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,12 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.13
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this 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
investigation.14 Based on our analysis of
the information submitted on the
record, we have determined that
vanillin, as defined in the scope,
constitutes a single domestic like
product, and we have analyzed industry
support in terms of that domestic like
product.15
In determining whether the petitioner
has standing under section 732(c)(4)(A)
of the Act, we considered the industry
12 See
section 771(10) of the Act.
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 Algoma Steel Corp., Ltd. v. United States, 865
F.2d 240 (Fed. Cir. 1989)).
14 See Petition at Volume I (pages 7–9 and Exhibit
I–8); see also First General Issues Supplement at 7–
8 and Exhibit I–Supp–3; and Second General Issues
Supplement at 2–3.
15 For a discussion of the domestic like product
analysis as applied to this case and information
regarding industry support, see Checklist, ‘‘Vanillin
from the People’s Republic of China,’’ dated
concurrently with, and hereby adopted by, this
notice (China AD Initiation Checklist), at
Attachment II, Analysis of Industry Support for the
Antidumping and Countervailing Duty Petitions
Covering Vanillin from the People’s Republic of
China. This checklist is on file electronically via
ACCESS.
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13 See
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support data contained in the Petition
with reference to the domestic like
product as defined in the ‘‘Scope of the
Investigation,’’ in the appendix to this
notice. To establish industry support,
the petitioner provided its production of
the domestic like product in 2023.16 The
petitioner estimated the production of
the domestic like product for the
remaining U.S. producers of vanillin
based on its knowledge of the
industry.17 We relied on data provided
by the petitioner for purposes of
measuring industry support.18
Our review of the data provided in the
Petition, the First General Issues
Supplement, the Second General Issues
Supplement, and other information
readily available to Commerce indicates
that the petitioner has established
industry support for the Petition.19 First,
the Petition established support from
domestic producers (or workers)
accounting for more than 50 percent of
the total production of the domestic like
product and, as such, Commerce is not
required to take further action in order
to evaluate industry support (e.g.,
polling).20 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 Petition
account for at least 25 percent of the
total production of the domestic like
product.21 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 Petition
account for more than 50 percent of the
production of the domestic like product
produced by that portion of the industry
expressing support for, or opposition to,
the Petition.22 Accordingly, Commerce
determines that the Petition was filed on
behalf of the domestic industry within
the meaning of section 732(b)(1) of the
Act.23
16 See Petition at Volume I (Exhibits I–2 and I–
11); see also First General Issues Supplement at 5,
8, and Exhibits I–Supp–4 and I–Supp–7.
17 See Petition at Volume I (page 2 and Exhibit
I–2); see also First General Issues Supplement at 5–
7 and Exhibits I–Supp–4, I–Supp–5, I–Supp–8 and
I–Supp–9; and Second General Issues Supplement
at 1–2.
18 See Petition at Volume I (page 2 and Exhibits
I–2 and I–11); see also First General Issues
Supplement at 5–8 and Exhibits I–Supp–4 and I–
Supp–7; and Second General Issues Supplement at
1–2.
19 See Attachment II of the China AD Initiation
Checklist.
20 Id.; see also section 732(c)(4)(D) of the Act.
21 See Attachment II of the China AD Initiation
Checklist.
22 Id.
23 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.24
The petitioner contends that the
industry’s injured condition is
illustrated by a significant volume of
subject imports; significant market share
of subject imports; underselling and
price depression and/or suppression;
declines in financial performance and
operating income; declines in
production, shipments, capacity
utilization, and employment variables;
and lost sales and revenues.25 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.26
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
an LTFV investigation of imports of
vanillin from China. 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 China AD Initiation Checklist.
U.S. Price
The petitioner based export price (EP)
on average unit values derived from
official import statistics for imports of
vanillin from China into the United
States during the POI.27 The petitioner
made certain adjustments to U.S. price
to calculate a net ex-factory U.S. price,
where applicable.28
Normal Value
Commerce considers China to be an
NME country.29 In accordance with
24 See Petition at Volume I (pages 11–12 and
Exhibit I–10).
25 Id. at 10–21 and Exhibits I–5 and I–9 through
I–15.
26 See China AD Initiation Checklist at
Attachment III, Analysis of Allegations and
Evidence of Material Injury and Causation for the
Antidumping and Countervailing Duty Petitions
Covering Vanillin from the People’s Republic of
China.
27 See China AD Initiation Checklist.
28 Id.
29 See, e.g., Certain Freight Rail Couplers and
Parts Thereof from the People’s Republic of China:
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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
the China LTFV investigation.
Accordingly, we base NV on FOPs
valued in a surrogate market economy
country in accordance with section
773(c) of the Act.
The petitioner claims that Chile 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.30 The petitioner provided
publicly available information from
Chile to value all FOPs.31 Based on the
information provided by the petitioner,
we believe it is appropriate to use Chile
as a surrogate country for China to value
all FOPs for initiation purposes.
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 its own
product-specific consumption rates as a
surrogate to value Chinese
manufacturers’ FOPs.32 Additionally,
the petitioner calculated factory
overhead, selling, general, and
administrative expenses, and profit
based on the experience of a Chilean
producer of comparable merchandise.33
Fair Value Comparisons
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Based on the data provided by the
petitioner, there is reason to believe that
imports of vanillin from China are
being, or are likely to be, sold in the
United States at LTFV. Based on
comparisons of EP to NV in accordance
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 LessThan-Fair Value and Final Affirmative
Determination of Critical Circumstances, 88 FR
34485 (May 30, 2023).
30 See China AD Initiation Checklist.
31 Id.
32 Id.
33 Id.
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with sections 772 and 773 of the Act,
the estimated dumping margins are
1,173.85 and 1,231.35 percent ad
valorem.34
Initiation of LTFV Investigation
Based upon the examination of the
Petition and supplemental
questionnaire responses, we find that
they meet the requirements of section
732 of the Act. Therefore, we are
initiating an LTFV investigation to
determine whether imports of vanillin
from China 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 determination no later than
140 days after the date of this initiation.
Respondent Selection
In the Petition, the petitioner named
40 companies in China as producers
and/or exporters of vanillin.35 Our
standard practice for respondent
selection in LTFV investigations
involving NME countries is to select
respondents based on quantity and
value (Q&V) questionnaires in cases
where Commerce 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 Petition, Commerce will solicit Q&V
information that can serve as a basis for
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 40 Chinese
producers and/or exporters identified in
the Petition, Commerce has determined
that it will issue Q&V questionnaires to
the largest producers and/or exporters
that are identified in the U.S. Customs
and Border Protection data for which
there is complete address information
on the record.36
Commerce will post the Q&V
questionnaires along with filing
instructions on Commerce’s website at
https://www.trade.gov/ec-adcvd-caseannouncements. Producers/exporters of
vanillin from China that do not receive
Q&V questionnaires may still submit a
response to the Q&V questionnaire and
34 Id.
35 See Petition at Volume I (page 5 and Exhibit
I–4); see also First General Issues Supplement at 1
and Exhibit I–8; and Second General Issues
Supplement at 1 and Exhibit 1–2Supp–1.
36 See Memorandum, ‘‘Release of U.S. Customs
and Border Protection Entry Data,’’ dated June 20,
2024.
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54427
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 July 9, 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
administrative protective order (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/administrativeprotective-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}hile continuing the practice of assigning
separate rates only to exporters, all separate
rates that {Commerce} will now assign in its
NME investigation will be specific to those
producers that supplied the exporter during
the period of investigation. Note, however,
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Federal Register / Vol. 89, No. 126 / Monday, July 1, 2024 / Notices
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} 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.37
Distribution of Copies of the Petition
In accordance with section
732(b)(3)(A) of the Act and 19 CFR
351.202(f), a copy of the public version
of the Petition has been provided to the
Government of China via ACCESS. To
the extent practicable, we will attempt
to provide a copy of the public version
of the Petition to each exporter named
in the Petition, 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 Determination by the ITC
The ITC will preliminarily determine,
within 45 days after the date on which
the Petition was filed, whether there is
a reasonable indication that imports of
vanillin from China are materially
injuring, or threatening material injury
to, a U.S. industry.38 A negative ITC
determination will result in the
investigation being terminated.39
Otherwise, this LTFV investigation will
proceed according to statutory and
regulatory time limits.
ddrumheller on DSK120RN23PROD with NOTICES1
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)
37 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.
38 See section 733(a) of the Act.
39 Id.
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20:36 Jun 28, 2024
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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 40 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.41 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 this
investigation.
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.42 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.
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 this
investigation.43
40 See
19 CFR 351.301(b).
41 See 19 CFR 351.301(b)(2).
42 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/201322853.htm.
43 See 19 CFR 351.302; see also, e.g., Time Limits
Final Rule.
PO 00000
Frm 00025
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Sfmt 4703
Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.44
Parties must use the certification
formats provided in 19 CFR
351.303(g).45 Commerce intends to
reject factual submissions if the
submitting party does not comply with
the applicable certification
requirements.
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 this
investigation 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 amended certain of its
requirements pertaining to the service of
documents in 19 CFR 351.303(f).46
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: June 25, 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 Investigation
The merchandise covered by the
investigation is vanillin, with the molecular
formula C8H8O3 or C9H10O3. For purposes of
this investigation, vanillin consists of natural
vanillin, synthetic vanillin, bio-sourced
synthetic vanillin (biovanillin) (each also
known as 4-Hydroxy-3methoxybenzaldehyde), and ethylvanillin
(also known as 3-Ethoxy-4hydroxybenzaldehyde). Vanillin covered by
this investigation is a chemical compound
with the Chemical Abstracts Service (CAS)
number 121–33–5 or 121–32–4. Vanillin is
covered by the investigation regardless of
whether it is in a crystalline powder or
crystal form. Vanillin is covered by the scope
of the investigation, irrespective of purity,
particle size, or physical form.
Merchandise subject to the investigation is
specified within the Harmonized Tariff
Schedule of the United States (HTSUS) under
subheading 2912.41.0000 and 2912.42.0000.
The HTSUS subheadings and CAS registry
44 See
section 782(b) of the Act.
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/.
46 See Administrative Protective Order, Service,
and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069
(September 29, 2023).
45 See
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Federal Register / Vol. 89, No. 126 / Monday, July 1, 2024 / Notices
numbers are provided for convenience and
customs purposes only. The written
description of the merchandise covered by
the investigation is dispositive.
[FR Doc. 2024–14460 Filed 6–28–24; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–552–840]
Certain Paper Plates From the Socialist
Republic of Vietnam: Preliminary
Affirmative Countervailing Duty
Determination, Preliminary Affirmative
Determination of Critical
Circumstances, in Part, and Alignment
of Final Determination With
Antidumping Duty Determination
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of
Commerce (Commerce) preliminarily
determines that countervailable
subsidies are being provided to
producers and exporters of certain paper
plates (paper plates) from the Socialist
Republic of Vietnam (Vietnam) during
the period of investigation, January 1,
2023, through December 31, 2023.
Interested parties are invited to
comment on this preliminary
determination.
DATES: Applicable July 1, 2024.
FOR FURTHER INFORMATION CONTACT:
Mary Kolberg, AD/CVD Operations,
Office I, Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–1785.
SUPPLEMENTARY INFORMATION:
AGENCY:
ddrumheller on DSK120RN23PROD with NOTICES1
Background
This preliminary determination is
made in accordance with section 703(b)
of the Tariff Act of 1930, as amended
(the Act). On February 21, 2024,
Commerce published the notice of
initiation of this countervailing duty
(CVD) investigation.1 On March 26,
2024, Commerce postponed the
preliminary determination until June
24, 2024.2
For a complete description of the
events that followed the initiation of
1 See
Certain Paper Plates from the People’s
Republic of China and the Socialist Republic of
Vietnam: Initiation of Countervailing Duty
Investigations, 89 FR 13043 (February 21, 2024)
(Initiation Notice).
2 See Certain Paper Plates from the People’s
Republic of China and the Socialist Republic of
Vietnam: Postponement of Preliminary
Determinations in the Countervailing Duty
Investigations, 89 FR 20945 (March 26, 2024).
VerDate Sep<11>2014
20:36 Jun 28, 2024
Jkt 262001
this investigation, see the Preliminary
Decision Memorandum.3 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 and Countervailing Duty
Centralized Electronic Service System
(ACCESS). ACCESS is available to
registered users at https://
access.trade.gov. In addition, a complete
version of the Preliminary Decision
Memorandum can be accessed directly
at https://access.trade.gov/public/
FRNoticesListLayout.aspx.
Scope of the Investigation
The products covered by this
investigation are paper plates from
Vietnam. For a complete description of
the scope of this investigation, see
Appendix I.
Scope Comments
In accordance with the Preamble to
Commerce’s regulations,4 the Initiation
Notice set aside a period of time for
parties to raise issues regarding product
coverage (i.e., scope).5 No interested
party commented on the scope of the
investigation as it appeared in the
Initiation Notice.
Methodology
Commerce is conducting this
investigation in accordance with section
701 of the Act. For each of the subsidy
programs found countervailable,
Commerce preliminarily determines
that there is a subsidy, i.e., a financial
contribution by an ‘‘authority’’ that
gives rise to a benefit to the recipient,
and that the subsidy is specific.6 For a
full description of the methodology
underlying our preliminary
determination, see the Preliminary
Decision Memorandum.
Commerce notes that, in making these
findings, it relied, in part, on facts
available, and, because it finds that
certain respondents and the
Government of Vietnam did not act to
the best of their ability to respond to
Commerce’s requests for information, it
3 See Memorandum, ‘‘Decision Memorandum for
the Preliminary Affirmative Determination of the
Countervailing Duty Investigation of Certain Paper
Plates from the Socialist Republic of Vietnam,’’
dated concurrently with, and hereby adopted by,
this notice (Preliminary Decision Memorandum).
4 See Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997)
(Preamble).
5 See Initiation Notice, 89 FR at 13044.
6 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.
PO 00000
Frm 00026
Fmt 4703
Sfmt 4703
54429
drew an adverse inference where
appropriate in selecting from among the
facts otherwise available.7 For further
information, see the ‘‘Use of Facts
Otherwise Available and Adverse
Inferences’’ section in the Preliminary
Decision Memorandum.
Preliminary Affirmative Determination
of Critical Circumstances, in Part
In accordance with section 703(e)(1)
of the Act, we preliminarily find that
critical circumstances exist with respect
to imports of subject merchandise from
Vietnam for Xie Li Vietnam
International Company (Xie Li), all
other producers and exporters, and
companies that were not responsive to
Commerce’s quantity and value (Q&V)
questionnaire,8 but do not exist with
respect to Go-Pak Paper Products
Vietnam Co., Ltd. (Go-Pak). For a full
discussion of our preliminary critical
circumstances determination, see the
‘‘Preliminary Affirmative Determination
of Critical Circumstances, in Part’’
section of the Preliminary Decision
Memorandum.
Alignment
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
concurrent antidumping duty (AD)
investigation of paper plates from
Vietnam, based on a request made by
the petitioner.9 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
November 5, 2024, unless postponed.10
All-Others Rate
Sections 703(d) and 705(c)(5)(A) of
the Act provide that, in the preliminary
determination, Commerce shall
determine an estimated all-others rate
for companies not individually
examined. This rate shall be an amount
equal to the weighted average of the
estimated subsidy rates established for
those companies individually
examined, excluding any rates that are
zero, de minimis, or based entirely
under section 776 of the Act.
7 See
sections 776(a) and (b) of the Act.
Commerce’s Letter, ‘‘Quantity and Value
Questionnaire,’’ dated February 15, 2024.
9 See Petitioner’s Letter, ‘‘Request for Alignment
of Final Determination with Deadline in Concurrent
AD Investigations,’’ dated June 5, 2024.
10 See Certain Paper Plates from the People’s
Republic of China, Thailand, and the Socialist
Republic of Vietnam: Postponement of Preliminary
Determinations in the Less-Than-Fair-Value
Investigations, 89 FR 49833 (June 12, 2024).
8 See
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]]>Agencies
[Federal Register Volume 89, Number 126 (Monday, July 1, 2024)]
[Notices]
[Pages 54424-54429]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-14460]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-172]
Vanillin From the People's Republic of China: Initiation of Less-
Than-Fair-Value Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable June 25, 2024.
FOR FURTHER INFORMATION CONTACT: Dmitry Vladimirov, AD/CVD Operations,
Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-0665.
SUPPLEMENTARY INFORMATION:
The Petition
On June 5, 2024, the U.S. Department of Commerce (Commerce)
received an antidumping duty (AD) petition concerning imports of
vanillin from the People's Republic of China (China) filed in proper
form on behalf of Solvay USA LLC (the petitioner), a U.S. producer of
vanillin.\1\ The Petition was accompanied by a countervailing duty
(CVD) petition concerning imports of vanillin from China.\2\
---------------------------------------------------------------------------
\1\ See Petitioner's Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties,'' dated June 5, 2024 (the
Petition).
\2\ Id.
---------------------------------------------------------------------------
Between June 7 and 17, 2024, Commerce requested supplemental
information pertaining to certain aspects of the Petition in
supplemental questionnaires.\3\ The petitioner responded to Commerce's
supplemental
[[Page 54425]]
questionnaires between June 11 and June 19, 2024.\4\
---------------------------------------------------------------------------
\3\ See Commerce's Letters, ``Supplemental Questions,'' dated
June 7, 2024 (First General Issues Questionnaire); ``Supplemental
Questions,'' dated June 7, 2024; Supplemental Questions,'' dated
June 14, 2024; and ``Supplemental Questions,'' dated June 14, 2024;
see also Memorandum, ``Phone Call with Counsel to the Petitioner,''
dated June 17, 2024 (June 17 Memorandum).
\4\ See Petitioner's Letters, ``Petitioner's Response to
Supplemental Questions Regarding Common Issues and Injury Volume I
of the Petitions,'' dated June 11, 2024 (First General Issues
Supplement); see also ``Petitioner's Response to Supplemental
Questions Regarding Volume II of the Petitions,'' dated June 13,
2024; ``Petitioner's Response to Supplemental Questions Regarding
Common Issues and Injury Volume I of the Petitions,'' dated June 18,
2024 (Second General Issues Supplement); and ``Petitioner's Response
to Supplemental Questions Regarding Volume II of the Petitions,''
dated June 19, 2024.
---------------------------------------------------------------------------
In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of vanillin from
China 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 vanillin industry in the United
States. Consistent with section 732(b)(1) of the Act, the Petition was
accompanied by information reasonably available to the petitioner
supporting its allegations.
Commerce finds that the petitioner filed the Petition 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 investigation.\5\
---------------------------------------------------------------------------
\5\ See section on ``Determination of Industry Support for the
Petition,'' infra.
---------------------------------------------------------------------------
Period of Investigation
Because the Petition was filed on June 5, 2024, and because China
is a non-market economy (NME) country, pursuant to 19 CFR
351.204(b)(1), the period of investigation (POI) for the China LTFV
investigation is October 1, 2023, through March 31, 2024.
Scope of the Investigation
The product covered by this investigation is vanillin from China.
For a full description of the scope of this investigation, see the
appendix to this notice.
Comments on Scope of the Investigation
Between June 7 and 17, 2024, Commerce requested information and
clarification from the petitioner regarding the proposed scope to
ensure that the scope language in the Petition is an accurate
reflection of the products for which the domestic industry is seeking
relief.\6\ Between June 11 and 18, 2024, the petitioner provided
clarifications and revised the scope.\7\ The description of merchandise
covered by this investigation, as described in the appendix to this
notice, reflects these clarifications.
---------------------------------------------------------------------------
\6\ See First General Issues Questionnaire; see also June 17
Memorandum.
\7\ See First General Issues Supplement at 2-4 and Exhibits I-
Supp-2 and I-Supp-3; see also Second General Issues Supplement at 2-
3.
---------------------------------------------------------------------------
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).\8\ 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 determination. If scope comments include factual
information,\9\ 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 July 15, 2024, which is 20 calendar days from the
signature date of this notice. Any rebuttal comments, which may include
factual information, and should also be limited to public information,
must be filed by 5:00 p.m. ET on July 25, 2024, which is 10 calendar
days from the initial comment deadline.
---------------------------------------------------------------------------
\8\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble); see also 19 CFR
351.312.
\9\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
---------------------------------------------------------------------------
Commerce requests that any factual information that parties
consider relevant to the scope of this investigation be submitted
during that period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigation 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.\10\ An electronically filed document must be received
successfully in its entirety by the time and date it is due.
---------------------------------------------------------------------------
\10\ 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.
---------------------------------------------------------------------------
Comments on Product Characteristics
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of vanillin 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)
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. In order to consider the suggestions of
interested parties in developing and issuing the AD questionnaire, all
product characteristics comments must be filed by 5:00 p.m. ET on July
15, 2024, which is 20 calendar days from the signature date of this
notice.\11\ Any rebuttal comments must be filed by 5:00 p.m. ET on July
25, 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 the LTFV
investigation.
---------------------------------------------------------------------------
\11\ See 19 CFR 351.303(b)(1).
---------------------------------------------------------------------------
Determination of Industry Support for the Petition
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,
[[Page 54426]]
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,\12\ 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.\13\
---------------------------------------------------------------------------
\12\ See section 771(10) of the Act.
\13\ 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 Algoma Steel Corp., Ltd. v. United
States, 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this 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 investigation.\14\ Based on our analysis of the information
submitted on the record, we have determined that vanillin, as defined
in the scope, constitutes a single domestic like product, and we have
analyzed industry support in terms of that domestic like product.\15\
---------------------------------------------------------------------------
\14\ See Petition at Volume I (pages 7-9 and Exhibit I-8); see
also First General Issues Supplement at 7-8 and Exhibit I-Supp-3;
and Second General Issues Supplement at 2-3.
\15\ For a discussion of the domestic like product analysis as
applied to this case and information regarding industry support, see
Checklist, ``Vanillin from the People's Republic of China,'' dated
concurrently with, and hereby adopted by, this notice (China AD
Initiation Checklist), at Attachment II, Analysis of Industry
Support for the Antidumping and Countervailing Duty Petitions
Covering Vanillin from the People's Republic of China. This
checklist is on file electronically via ACCESS.
---------------------------------------------------------------------------
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 Petition with reference to the domestic like product
as defined in the ``Scope of the Investigation,'' in the appendix to
this notice. To establish industry support, the petitioner provided its
production of the domestic like product in 2023.\16\ The petitioner
estimated the production of the domestic like product for the remaining
U.S. producers of vanillin based on its knowledge of the industry.\17\
We relied on data provided by the petitioner for purposes of measuring
industry support.\18\
---------------------------------------------------------------------------
\16\ See Petition at Volume I (Exhibits I-2 and I-11); see also
First General Issues Supplement at 5, 8, and Exhibits I-Supp-4 and
I-Supp-7.
\17\ See Petition at Volume I (page 2 and Exhibit I-2); see also
First General Issues Supplement at 5-7 and Exhibits I-Supp-4, I-
Supp-5, I-Supp-8 and I-Supp-9; and Second General Issues Supplement
at 1-2.
\18\ See Petition at Volume I (page 2 and Exhibits I-2 and I-
11); see also First General Issues Supplement at 5-8 and Exhibits I-
Supp-4 and I-Supp-7; and Second General Issues Supplement at 1-2.
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Our review of the data provided in the Petition, the First General
Issues Supplement, the Second General Issues Supplement, and other
information readily available to Commerce indicates that the petitioner
has established industry support for the Petition.\19\ First, the
Petition established support from domestic producers (or workers)
accounting for more than 50 percent of the total production of the
domestic like product and, as such, Commerce is not required to take
further action in order to evaluate industry support (e.g.,
polling).\20\ 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
Petition account for at least 25 percent of the total production of the
domestic like product.\21\ 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 Petition account for more than 50 percent of the
production of the domestic like product produced by that portion of the
industry expressing support for, or opposition to, the Petition.\22\
Accordingly, Commerce determines that the Petition was filed on behalf
of the domestic industry within the meaning of section 732(b)(1) of the
Act.\23\
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\19\ See Attachment II of the China AD Initiation Checklist.
\20\ Id.; see also section 732(c)(4)(D) of the Act.
\21\ See Attachment II of the China AD Initiation Checklist.
\22\ Id.
\23\ 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.\24\
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\24\ See Petition at Volume I (pages 11-12 and Exhibit I-10).
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The petitioner contends that the industry's injured condition is
illustrated by a significant volume of subject imports; significant
market share of subject imports; underselling and price depression and/
or suppression; declines in financial performance and operating income;
declines in production, shipments, capacity utilization, and employment
variables; and lost sales and revenues.\25\ 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.\26\
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\25\ Id. at 10-21 and Exhibits I-5 and I-9 through I-15.
\26\ See China AD Initiation Checklist at Attachment III,
Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing Duty Petitions
Covering Vanillin from the People's Republic of China.
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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 an LTFV
investigation of imports of vanillin from China. 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 China AD Initiation
Checklist.
U.S. Price
The petitioner based export price (EP) on average unit values
derived from official import statistics for imports of vanillin from
China into the United States during the POI.\27\ The petitioner made
certain adjustments to U.S. price to calculate a net ex-factory U.S.
price, where applicable.\28\
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\27\ See China AD Initiation Checklist.
\28\ Id.
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Normal Value
Commerce considers China to be an NME country.\29\ In accordance
with
[[Page 54427]]
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 the China LTFV investigation.
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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\29\ 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).
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The petitioner claims that Chile 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.\30\ The petitioner provided
publicly available information from Chile to value all FOPs.\31\ Based
on the information provided by the petitioner, we believe it is
appropriate to use Chile as a surrogate country for China to value all
FOPs for initiation purposes.
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\30\ See China AD Initiation Checklist.
\31\ 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 its own product-specific consumption rates as a
surrogate to value Chinese manufacturers' FOPs.\32\ Additionally, the
petitioner calculated factory overhead, selling, general, and
administrative expenses, and profit based on the experience of a
Chilean producer of comparable merchandise.\33\
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\32\ Id.
\33\ Id.
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Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of vanillin from China 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 are 1,173.85 and 1,231.35 percent ad valorem.\34\
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\34\ Id.
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Initiation of LTFV Investigation
Based upon the examination of the Petition and supplemental
questionnaire responses, we find that they meet the requirements of
section 732 of the Act. Therefore, we are initiating an LTFV
investigation to determine whether imports of vanillin from China 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
determination no later than 140 days after the date of this initiation.
Respondent Selection
In the Petition, the petitioner named 40 companies in China as
producers and/or exporters of vanillin.\35\ Our standard practice for
respondent selection in LTFV investigations involving NME countries is
to select respondents based on quantity and value (Q&V) questionnaires
in cases where Commerce 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 Petition, Commerce will solicit Q&V
information that can serve as a basis for 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 40 Chinese producers and/or exporters identified in
the Petition, Commerce has determined that it will issue Q&V
questionnaires to the largest producers and/or exporters that are
identified in the U.S. Customs and Border Protection data for which
there is complete address information on the record.\36\
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\35\ See Petition at Volume I (page 5 and Exhibit I-4); see also
First General Issues Supplement at 1 and Exhibit I-8; and Second
General Issues Supplement at 1 and Exhibit 1-2Supp-1.
\36\ See Memorandum, ``Release of U.S. Customs and Border
Protection Entry Data,'' dated June 20, 2024.
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Commerce will post the Q&V questionnaires along with filing
instructions on Commerce's website at https://www.trade.gov/ec-adcvd-case-announcements. Producers/exporters of vanillin 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 July 9, 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
administrative protective order (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,
[[Page 54428]]
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.\37\
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\37\ 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 Petition
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the Government of China via ACCESS. To the extent
practicable, we will attempt to provide a copy of the public version of
the Petition to each exporter named in the Petition, 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 Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of vanillin from China are materially injuring,
or threatening material injury to, a U.S. industry.\38\ A negative ITC
determination will result in the investigation being terminated.\39\
Otherwise, this LTFV investigation will proceed according to statutory
and regulatory time limits.
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\38\ See section 733(a) of the Act.
\39\ 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 \40\ 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.\41\ 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 this investigation.
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\40\ See 19 CFR 351.301(b).
\41\ See 19 CFR 351.301(b)(2).
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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.\42\ 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. 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 this investigation.\43\
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\42\ 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.
\43\ 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.\44\
Parties must use the certification formats provided in 19 CFR
351.303(g).\45\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\44\ See section 782(b) of the Act.
\45\ 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 this investigation 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 amended certain of its requirements pertaining
to the service of documents in 19 CFR 351.303(f).\46\
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\46\ 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: June 25, 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 Investigation
The merchandise covered by the investigation is vanillin, with
the molecular formula C8H8O3 or
C9H10O3. For purposes of this
investigation, vanillin consists of natural vanillin, synthetic
vanillin, bio-sourced synthetic vanillin (biovanillin) (each also
known as 4-Hydroxy-3-methoxybenzaldehyde), and ethylvanillin (also
known as 3-Ethoxy-4-hydroxybenzaldehyde). Vanillin covered by this
investigation is a chemical compound with the Chemical Abstracts
Service (CAS) number 121-33-5 or 121-32-4. Vanillin is covered by
the investigation regardless of whether it is in a crystalline
powder or crystal form. Vanillin is covered by the scope of the
investigation, irrespective of purity, particle size, or physical
form.
Merchandise subject to the investigation is specified within the
Harmonized Tariff Schedule of the United States (HTSUS) under
subheading 2912.41.0000 and 2912.42.0000. The HTSUS subheadings and
CAS registry
[[Page 54429]]
numbers are provided for convenience and customs purposes only. The
written description of the merchandise covered by the investigation
is dispositive.
[FR Doc. 2024-14460 Filed 6-28-24; 8:45 am]
BILLING CODE 3510-DS-P
