Erythritol From the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation, 1957-1962 [2025-00258]
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Federal Register / Vol. 90, No. 6 / Friday, January 10, 2025 / Notices
comment, you should be aware that
your entire comment—including your
personal identifying information—may
be made publicly available at any time.
While you may ask us in your comment
to withhold your personal identifying
information from public review, we
cannot guarantee that we will be able to
do so.
Sheleen Dumas,
Departmental PRA Clearance Officer, Office
of the Under Secretary for Economic Affairs,
Commerce Department.
[FR Doc. 2025–00270 Filed 1–8–25; 8:45 am]
BILLING CODE 3510–07–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–555–006]
Paper File Folders From the Kingdom
of Cambodia: Postponement of
Preliminary Determination in the
Countervailing Duty Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
AGENCY:
DATES:
Applicable January 10, 2025.
FOR FURTHER INFORMATION CONTACT:
Shane Subler or Brandon James, AD/
CVD Operations, Office VIII,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–6241
and (202) 482–7472, respectively.
SUPPLEMENTARY INFORMATION:
Background
On November 12, 2024, the U.S.
Department of Commerce (Commerce)
initiated the countervailing duty (CVD)
investigation of imports of paper file
folders from the Kingdom of Cambodia
(Cambodia).1 Currently, the preliminary
determination is due no later than
January 16, 2025.
khammond on DSK9W7S144PROD with NOTICES
Postponement of Preliminary
Determination
Section 703(b)(1) of the Tariff Act of
1930, as amended (the Act), requires
Commerce to issue the preliminary
determination in a CVD investigation
within 65 days after the date on which
Commerce initiated the investigation.
However, section 703(c)(1) of the Act
permits Commerce to postpone the
preliminary determination until no later
than 130 days after the date on which
1 See Paper File Folders from Cambodia:
Initiation of Countervailing Duty Investigation, 89
FR 91331 (November 19, 2024).
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Commerce initiated the investigation if:
(A) the petitioner 2 makes a timely
request for a postponement; or (B)
Commerce concludes that the parties
concerned are cooperating, that the
investigation is extraordinarily
complicated, and that additional time is
necessary to make a preliminary
determination. Under 19 CFR
351.205(e), the petitioner must submit a
request for postponement 25 days or
more before the scheduled date of the
preliminary determination and must
state the reasons for the request.
Commerce will grant the request unless
it finds compelling reasons to deny the
request.
On December 19, 2024, the petitioner
submitted a timely request that
Commerce postpone the preliminary
CVD determination.3 The petitioner
stated that it requests postponement for
Commerce to analyze initial responses
and to issue supplemental
questionnaires prior to making its
preliminary CVD determination.4
In accordance with 19 CFR
351.205(e), the petitioner submitted its
request for postponement of the
preliminary determination in this
investigation 25 days or more before the
scheduled date of the preliminary
determination and has stated the
reasons for requesting a postponement
of the preliminary determination, and
Commerce finds no compelling reason
to deny the request. Therefore, in
accordance with section 703(c)(1)(A) of
the Act, Commerce is postponing the
deadline for the preliminary
determination to no later than 130 days
after the date on which the investigation
was initiated, i.e., March 24, 2025.5
Pursuant to section 705(a)(1) of the Act
and 19 CFR 351.210(b)(1), the deadline
for the final determination of the
investigation will continue to be 75 days
after the date of the preliminary
determination.
Notification to Interested Parties
This notice is issued and published
pursuant to section 703(c)(2) of the Act
and 19 CFR 351.205(f)(1).
2 The petitioner is the Coalition of Domestic
Folder Manufacturers.
3 See Petitioner’s Letter, ‘‘Petitioner’s Request For
Postponement of the Preliminary Determination,’’
dated December 19, 2024.
4 Id.
5 Postponing the preliminary determination to
130 days after the date of initiation would place the
deadline on Saturday, March 22, 2025. Commerce’s
practice dictates that where a deadline falls on a
weekend or federal holiday, the appropriate
deadline is the next business day. See Notice of
Clarification: Application of ‘‘Next Business Day’’
Rule for Administrative Determination Deadlines
Pursuant to the Tariff Act of 1930, As Amended, 70
FR 24533 (May 10, 2005).
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1957
Dated: January 3, 2025.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement
and Compliance.
[FR Doc. 2025–00326 Filed 1–8–25; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–192]
Erythritol From the People’s Republic
of China: Initiation of Less-Than-FairValue Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
AGENCY:
DATES:
Applicable January 2, 2025.
FOR FURTHER INFORMATION CONTACT:
Brian Smith, Office VIII, AD/CVD
Operations, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–1766.
SUPPLEMENTARY INFORMATION:
The Petition
On December 13, 2024, the U.S.
Department of Commerce (Commerce)
received an antidumping duty (AD)
petition concerning imports of erythritol
from the People’s Republic of China
(China) filed in proper form on behalf of
Cargill, Incorporated (the petitioner), a
U.S. producer of erythritol.1 The AD
Petition was accompanied by a
countervailing duty (CVD) petition
concerning imports of erythritol from
China.2
On December 17, 2024, Commerce
requested supplemental information
pertaining to certain aspects of the
Petition in supplemental
questionnaires.3 On December 19, 2024,
the petitioner filed timely responses to
these requests for additional
information.4
In accordance with section 732(b) of
the Tariff Act of 1930, as amended (the
Act), the petitioner alleges that imports
of erythritol from China are being, or are
1 See Petitioner’s Letter, ‘‘Petition for the
Imposition of Antidumping and Countervailing
Duties,’’ dated December 13, 2024 (Petition).
2 Id.
3 See Commerce’s Letters, ‘‘Supplemental
Questions,’’ dated December 17, 2024 (General
Issues Questionnaire); and ‘‘Supplemental
Questions,’’ dated December 17, 2024.
4 See Petitioner’s Letters, ‘‘Response to
Supplemental Petition Questionnaire,’’ dated
December 19, 2024 (General Issues Supplement);
and ‘‘Response to Supplemental Petition
Questionnaire,’’ dated December 19, 2024.
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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 erythritol
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
December 13, 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 LTFV
investigation is April 1, 2024, through
September 30, 2024.
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Scope of the Investigation
The product covered by this
investigation is erythritol from China.
For a full description of the scope of this
investigation, see the appendix to this
notice.
Comments on the Scope of the
Investigation
On December 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 On
December 19, 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.
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
5 See
section on ‘‘Determination of Industry
Support for the Petition,’’ infra.
6 See General Issues Questionnaire.
7 See General Issues Supplement at 2–3 and
Exhibit GEN–S–2.
8 See Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997)
(Preamble); see also 19 CFR 351.312.
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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 January 22, 2025,
which 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 February 3,
2025, which is the next business day
after 10 calendar days from the initial
comment deadline.10
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.11 An
electronically filed document must be
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
9 See 19 CFR 351.102(b)(21) (defining ‘‘factual
information’’).
10 See 19 CFR 351.303(b)(1). The deadline for
scope rebuttal comments falls on February 1, 2025,
which is a Saturday. In accordance with 19 CFR
351.303(b)(1), Commerce will accept scope rebuttal
comments filed by 5:00 p.m. ET on February 3,
2025 (‘‘For both electronically filed and manually
filed documents, if the applicable due date falls on
a non-business day, the Secretary will accept
documents that are filed on the next business
day.’’).
11 See Antidumping and Countervailing Duty
Proceedings: Electronic Filing Procedures;
Administrative Protective Order Procedures, 76 FR
39263 (July 6, 2011); see also Enforcement and
Compliance: Change of Electronic Filing System
Name, 79 FR 69046 (November 20, 2014) for details
of Commerce’s electronic filing requirements,
effective August 5, 2011. Information on using
ACCESS can be found at https://access.trade.gov/
help.aspx and a handbook can be found at https://
access.trade.gov/help/Handbook_on_Electronic_
Filing_Procedures.pdf.
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of erythritol 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 questionnaires, all
product characteristics comments must
be filed by 5:00 p.m. ET on January 22,
2025, which is 20 calendar days from
the signature date of this notice. Any
rebuttal comments must be filed by 5:00
p.m. ET on February 3, 2025, which is
the next business day after 10 calendar
days from the initial comment
deadline.12 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
12 See 19 CFR 351.303(b)(1). The deadline for
rebuttal comments on product characteristics falls
on February 1, 2025, which is a Saturday. In
accordance with 19 CFR 351.303(b)(1), Commerce
will accept comments filed by 5:00 p.m. ET on
February 3, 2025 (‘‘For both electronically filed and
manually filed documents, if the applicable due
date falls on a non-business day, the Secretary will
accept documents that are filed on the next
business day.’’).
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whole of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs Commerce to look to producers
and workers who produce the domestic
like product. The U.S. International
Trade Commission (ITC), which is
responsible for determining whether
‘‘the domestic industry’’ has been
injured, must also determine what
constitutes a domestic like product in
order to define the industry. While both
Commerce and the ITC apply the same
statutory definition regarding the
domestic like product,13 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.14
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.15 Based on our analysis of
the information submitted on the
record, we have determined that
erythritol, as defined in the scope,
constitutes a single domestic like
product, and we have analyzed industry
support in terms of that domestic like
product.16
In determining whether the petitioner
has standing under section 732(c)(4)(A)
of the Act, we considered the industry
13 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)).
15 For a discussion of the domestic like product
analysis as applied to this case and information
regarding industry support, see Checklist,
‘‘Antidumping Duty Investigation Initiation
Checklist: Erythritol 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 Erythritol from the People’s
Republic of China (Attachment II). This checklist is
on file electronically via ACCESS.
16 See Attachment II of the China AD Initiation
Checklist.
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14 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 own
production of the domestic like product
in 2023.17 The petitioner stated that
there are no other known producers of
erythritol in the United States; therefore,
the Petition is supported by 100 percent
of the U.S. industry.18 We relied on data
provided by the petitioner for purposes
of measuring industry support.19
Our review of the data provided in the
Petition, the General Issues Supplement,
and other information readily available
to Commerce indicates that the
petitioner has established industry
support for the Petition.20 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).21 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.22 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.23 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.24
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,
17 Id.
18 Id.
19 For further discussion, see Attachment II of the
China AD Initiation Checklist.
20 Id.
21 Id.; see also section 732(c)(4)(D) of the Act.
22 See Attachment II of the China AD Initiation
Checklist.
23 Id.
24 Id.
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the petitioner alleges that subject
imports from China exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.25
The petitioner contends that the
industry’s injured condition is
illustrated by the significant and
increasing volume of subject imports;
reduced market share; underselling and
price depression and/or suppression;
lost sales and revenues; and declines in
the domestic industry’s production,
capacity utilization, U.S. shipments,
employment variables, and financial
performance.26 We assessed the
allegations and supporting evidence
regarding material injury, threat of
material injury, causation, cumulation,
as well as negligibility, and we have
determined that these allegations are
properly supported by adequate
evidence and meet the statutory
requirements for initiation.27
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
a LTFV investigation of imports of
erythritol 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 transaction-specific average unit
values (AUVs) (i.e., month- and portspecific AUVs) derived from official
import statistics and tied to ship
manifest data.28 The petitioner made
certain adjustments to U.S. price to
calculate a net ex-factory U.S. price,
where applicable.29
Normal Value
Commerce considers China to be an
NME country.30 In accordance with
25 For further information regarding negligibility
and the injury allegation, 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 Erythritol from the People’s Republic of
China (Attachment III).
26 See Attachment III of the China AD Initiation
Checklist.
27 Id.
28 See China AD Initiation Checklist.
29 Id.
30 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-
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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
this 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 Malaysia 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.31 The
petitioner provided publicly available
information from Malaysia to value all
FOPs except labor.32 Consistent with
Commerce’s recent practice in cases
involving Malaysia as a surrogate
country,33 to value labor, the petitioner
provided data from another surrogate
country, the Republic of Türkiye
(Türkiye). Based on the information
provided by the petitioner, we believe it
is appropriate to use Malaysia as a
surrogate country for China to value all
FOPs except labor and Türkiye to value
labor 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.
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Factors of Production
Because information regarding the
volume of inputs consumed by Chinese
producers/exporters was not reasonably
available, the petitioner used its own
production experience and productspecific consumption rates as a
surrogate to value Chinese
manufacturers’ FOPs.34 Additionally,
the petitioner calculated factory
overhead, selling, general, and
administrative expenses, and profit
Than-Fair Value and Final Affirmative
Determination of Critical Circumstances, 88 FR
34485 (May 30, 2023).
31 See China AD Initiation Checklist.
32 Id.
33 See, e.g., Certain Collated Steel Staples from
the People’s Republic of China: Final Results of
Antidumping Duty Administrative Review; and
Final Determination of No Shipments; 2021–2022,
88 FR 85242 (December 7, 2023), and
accompanying Issues and Decision Memorandum
(IDM) at Comment 2; and Light-Walled Rectangular
Pipe and Tube from the People’s Republic of China:
Final Results of Antidumping Duty Administrative
Review, 88 FR 15671 (March 14, 2023), and
accompanying IDM at Comment 2.
34 See China AD Initiation Checklist.
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based on the experience of a Malaysian
producer of comparable merchandise.35
Fair Value Comparisons
Based on the data provided by the
petitioner, there is reason to believe that
imports of erythritol 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 for
erythritol from China covered by this
initiation range from 270.00 to 450.64
percent.36
Initiation of LTFV Investigation
Based upon the examination of the
Petition and supplemental responses,
we find that they meet the requirements
of section 732 of the Act. Therefore, we
are initiating a LTFV investigation to
determine whether imports of erythritol
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
identified 83 companies in China as
producers and/or exporters of
erythritol.37 Our standard practice for
respondent selection in AD
investigations involving NME countries
is to select respondents based on
quantity and value (Q&V)
questionnaires in cases where
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 83 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
in China that are identified in the U.S.
Customs and Border Protection POI
35 Id.
entry data for which there is complete
address information on the record.38
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
erythritol 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 January 16, 2025,
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
36 Id.
37 See Petition at Volume I (pages I–7 and I–8 and
Exhibit I–5); see also General Issues Supplement at
1 and Exhibit GEN–S–1.
PO 00000
Frm 00024
Fmt 4703
Sfmt 4703
38 See Memorandum, ‘‘Release of U.S. Customs
and Border Protection Entry Data,’’ dated December
31, 2024.
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Federal Register / Vol. 90, No. 6 / Friday, January 10, 2025 / Notices
Q&V questionnaire response will not
receive separate rate consideration.
proceed according to statutory and
regulatory time limits.
Use of Combination Rates
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 42 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.43 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.
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, 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.39
Distribution of Copies of the Petition
In accordance with section
732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version
of the Petition have 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
khammond on DSK9W7S144PROD with NOTICES
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
erythritol from China are materially
injuring, or threatening material injury
to, a U.S. industry.40 A negative ITC
determination will result in the
investigation being terminated.41
Otherwise, this LTFV investigation will
39 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.
40 See section 733(a) of the Act.
41 Id.
VerDate Sep<11>2014
17:28 Jan 08, 2025
Jkt 265001
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.44 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
42 See
19 CFR 351.301(b).
19 CFR 351.301(b)(2).
44 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
PO 00000
Frm 00025
Fmt 4703
Sfmt 4703
1961
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.45
Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.46
Parties must use the certification
formats provided in 19 CFR
351.303(g).47 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).48
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: January 2, 2025.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement
and Compliance.
Appendix
Scope of the Investigation
The product within the scope of this
investigation is erythritol, which is a sugar
alcohol, commonly referred to as a polyol,
typically produced by the fermentation of
glucose using enzymes and yeast or yeast-like
fungi (though the scope includes erythritol
produced using any other feedstock or
organism). Erythritol is an organic compound
45 See 19 CFR 351.302; see also, e.g., Time Limits
Final Rule.
46 See section 782(b) of the Act.
47 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/.
48 See Administrative Protective Order, Service,
and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069
(September 29, 2023).
E:\FR\FM\10JAN1.SGM
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1962
Federal Register / Vol. 90, No. 6 / Friday, January 10, 2025 / Notices
with the molecular formula C4H10O4 and a
Chemical Abstracts Service (CAS) registry
number of 149–32–6. Other names for
erythritol include meso-erythritol, (2R, 3S)butan-1,2,3,4-tetrol, butane-1,2,3,4-tetrol, or
meso-1,2,3,4-Tetrahydryoxybutane.
Erythritol typically appears as a white
crystalline, odorless product that rapidly
dissolves in water. While erythritol is
typically produced in the crystalline form or
as a fine powder or in directly compressible
form, the scope of this investigation covers
all physical forms and grades of erythritol,
including organic erythritol.
The merchandise covered by this
investigation is classifiable under
Harmonized Tariff Schedule of the United
States (HTSUS) subheading 2905.49.4000.
Erythritol may also enter under HTSUS
subheading 2106.90.9998. Although the
HTSUS subheadings are provided for
convenience and customs purposes, the
written description of the merchandise
covered by this investigation is dispositive.
[FR Doc. 2025–00258 Filed 1–8–25; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–193]
Erythritol From the People’s Republic
of China: Initiation of Countervailing
Duty Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable January 2, 2025.
FOR FURTHER INFORMATION CONTACT: Ajay
Menon, Office IX, AD/CVD Operations,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–0208.
SUPPLEMENTARY INFORMATION:
AGENCY:
khammond on DSK9W7S144PROD with NOTICES
The Petition
On December 13, 2024, the U.S.
Department of Commerce (Commerce)
received a countervailing duty (CVD)
petition concerning imports of erythritol
from the People’s Republic of China
(China) filed in proper form on behalf of
Cargill, Incorporated (the petitioner), a
U.S. producer of erythritol.1 The CVD
Petition was accompanied by an
antidumping duty (AD) petition
concerning imports of erythritol from
China.2
On December 17, 2024, Commerce
requested supplemental information
pertaining to certain aspects of the
1 See Petitioner’s Letter, ‘‘Petition for the
Imposition of Antidumping and Countervailing
Duties,’’ December 13, 2024 (Petition).
2 Id.
VerDate Sep<11>2014
17:28 Jan 08, 2025
Jkt 265001
Petition in supplemental
questionnaires.3 On December 19, 2024,
the petitioner filed timely responses to
these requests for additional
information.4
In accordance with section 702(b)(1)
of the Tariff Act of 1930, as amended
(the Act), the petitioner alleges that the
Government of China (GOC) is
providing countervailable subsidies,
within the meaning of sections 701 and
771(5) of the Act, to producers of
erythritol in China, and that such
imports are materially injuring, or
threatening material injury to, the
domestic industry producing erythritol
in the United States. Consistent with
section 702(b)(1) of the Act and 19 CFR
351.202(b), for those alleged programs
on which we are initiating a CVD
investigation, 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 with respect to the initiation of
the requested CVD investigation.5
Period of Investigation
Because the Petition was filed on
December 13, 2024, the period of
investigation for the CVD investigation
is January 1, 2023, through December
31, 2023.6
Scope of the Investigation
The product covered by this
investigation is erythritol from China.
For a full description of the scope of this
investigation, see the appendix to this
notice.
Comments on the Scope of the
Investigation
On December 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.7 On
3 See Commerce’s Letters, ‘‘Supplemental
Questions,’’ dated December 17, 2024 (General
Issues Questionnaire); and ‘‘Supplemental
Questions,’’ dated December 17, 2024.
4 See Petitioner’s Letters, ‘‘Response to
Supplemental Petition Questionnaire,’’ dated
December 19, 2024 (General Issues Supplement);
and ‘‘Response to Supplemental Petition
Questionnaire,’’ dated December 19, 2024.
5 See section on ‘‘Determination of Industry
Support for the Petition,’’ infra.
6 See 19 CFR 351.204(b)(2).
7 See General Issues Questionnaire.
PO 00000
Frm 00026
Fmt 4703
Sfmt 4703
December 19, 2024, the petitioner
provided clarifications and revised the
scope.8 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).9 Commerce will consider
all 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, all such
factual information should be limited to
public information.10 To facilitate
preparation of its questionnaires,
Commerce requests that scope
comments be submitted by 5:00 p.m.
Eastern Time (ET) on January 22, 2025,
which 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 February 3,
2025, which is the next business day
after 10 calendar days from the initial
comment deadline.11
Commerce requests that any factual
information that parties consider
relevant to the scope of the investigation
be submitted during that time 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 AD 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),
8 See General Issues Supplement at 2–3 and
Exhibit GEN–S–2.
9 See Antidumping Duties; Countervailing Duties;
Final Rule, 62 FR 27296, 27323 (May 19, 1997)
(Preamble).
10 See 19 CFR 351.102(b)(21) (defining ‘‘factual
information’’).
11 See 19 CFR 351.303(b)(1). The deadline for
scope rebuttal comments falls on February 1, 2025,
which is a Saturday. In accordance with 19 CFR
351.303(b)(1), Commerce will accept scope rebuttal
comments filed by 5:00 p.m. ET on February 3,
2025 (‘‘For both electronically filed and manually
filed documents, if the applicable due date falls on
a non-business day, the Secretary will accept
documents that are filed on the next business
day.’’).
E:\FR\FM\10JAN1.SGM
10JAN1
]]>Agencies
[Federal Register Volume 90, Number 6 (Friday, January 10, 2025)]
[Notices]
[Pages 1957-1962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00258]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-192]
Erythritol 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 January 2, 2025.
FOR FURTHER INFORMATION CONTACT: Brian Smith, Office VIII, AD/CVD
Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1766.
SUPPLEMENTARY INFORMATION:
The Petition
On December 13, 2024, the U.S. Department of Commerce (Commerce)
received an antidumping duty (AD) petition concerning imports of
erythritol from the People's Republic of China (China) filed in proper
form on behalf of Cargill, Incorporated (the petitioner), a U.S.
producer of erythritol.\1\ The AD Petition was accompanied by a
countervailing duty (CVD) petition concerning imports of erythritol
from China.\2\
---------------------------------------------------------------------------
\1\ See Petitioner's Letter, ``Petition for the Imposition of
Antidumping and Countervailing Duties,'' dated December 13, 2024
(Petition).
\2\ Id.
---------------------------------------------------------------------------
On December 17, 2024, Commerce requested supplemental information
pertaining to certain aspects of the Petition in supplemental
questionnaires.\3\ On December 19, 2024, the petitioner filed timely
responses to these requests for additional information.\4\
---------------------------------------------------------------------------
\3\ See Commerce's Letters, ``Supplemental Questions,'' dated
December 17, 2024 (General Issues Questionnaire); and ``Supplemental
Questions,'' dated December 17, 2024.
\4\ See Petitioner's Letters, ``Response to Supplemental
Petition Questionnaire,'' dated December 19, 2024 (General Issues
Supplement); and ``Response to Supplemental Petition
Questionnaire,'' dated December 19, 2024.
---------------------------------------------------------------------------
In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of erythritol
from China are being, or are
[[Page 1958]]
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 erythritol 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 December 13, 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 LTFV
investigation is April 1, 2024, through September 30, 2024.
Scope of the Investigation
The product covered by this investigation is erythritol from China.
For a full description of the scope of this investigation, see the
appendix to this notice.
Comments on the Scope of the Investigation
On December 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\ On December 19, 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 General Issues Questionnaire.
\7\ See General Issues Supplement at 2-3 and Exhibit GEN-S-2.
---------------------------------------------------------------------------
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 January 22, 2025, which 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 February 3, 2025, which is the next
business day after 10 calendar days from the initial comment
deadline.\10\
---------------------------------------------------------------------------
\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 19 CFR 351.303(b)(1). The deadline for scope rebuttal
comments falls on February 1, 2025, which is a Saturday. In
accordance with 19 CFR 351.303(b)(1), Commerce will accept scope
rebuttal comments filed by 5:00 p.m. ET on February 3, 2025 (``For
both electronically filed and manually filed documents, if the
applicable due date falls on a non-business day, the Secretary will
accept documents that are filed on the next business day.'').
---------------------------------------------------------------------------
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.\11\ An electronically filed document must be received
successfully in its entirety by the time and date it is due.
---------------------------------------------------------------------------
\11\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance: Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on using ACCESS
can be found at https://access.trade.gov/help.aspx and a handbook
can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
---------------------------------------------------------------------------
Comments on Product Characteristics
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of erythritol 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 questionnaires, all
product characteristics comments must be filed by 5:00 p.m. ET on
January 22, 2025, which is 20 calendar days from the signature date of
this notice. Any rebuttal comments must be filed by 5:00 p.m. ET on
February 3, 2025, which is the next business day after 10 calendar days
from the initial comment deadline.\12\ All comments and submissions to
Commerce must be filed electronically using ACCESS, as explained above,
on the record of the LTFV investigation.
---------------------------------------------------------------------------
\12\ See 19 CFR 351.303(b)(1). The deadline for rebuttal
comments on product characteristics falls on February 1, 2025, which
is a Saturday. In accordance with 19 CFR 351.303(b)(1), Commerce
will accept comments filed by 5:00 p.m. ET on February 3, 2025
(``For both electronically filed and manually filed documents, if
the applicable due date falls on a non-business day, the Secretary
will accept documents that are filed on the next business day.'').
---------------------------------------------------------------------------
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
[[Page 1959]]
whole of a domestic like product. Thus, to determine whether a petition
has the requisite industry support, the statute directs Commerce to
look to producers and workers who produce the domestic like product.
The U.S. International Trade Commission (ITC), which is responsible for
determining whether ``the domestic industry'' has been injured, must
also determine what constitutes a domestic like product in order to
define the industry. While both Commerce and the ITC apply the same
statutory definition regarding the domestic like product,\13\ 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.\14\
---------------------------------------------------------------------------
\13\ See section 771(10) of the Act.
\14\ 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.\15\ Based on our analysis of the information
submitted on the record, we have determined that erythritol, as defined
in the scope, constitutes a single domestic like product, and we have
analyzed industry support in terms of that domestic like product.\16\
---------------------------------------------------------------------------
\15\ For a discussion of the domestic like product analysis as
applied to this case and information regarding industry support, see
Checklist, ``Antidumping Duty Investigation Initiation Checklist:
Erythritol 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 Erythritol
from the People's Republic of China (Attachment II). This checklist
is on file electronically via ACCESS.
\16\ See Attachment II of the China AD Initiation Checklist.
---------------------------------------------------------------------------
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
own production of the domestic like product in 2023.\17\ The petitioner
stated that there are no other known producers of erythritol in the
United States; therefore, the Petition is supported by 100 percent of
the U.S. industry.\18\ We relied on data provided by the petitioner for
purposes of measuring industry support.\19\
---------------------------------------------------------------------------
\17\ Id.
\18\ Id.
\19\ For further discussion, see Attachment II of the China AD
Initiation Checklist.
---------------------------------------------------------------------------
Our review of the data provided in the Petition, the General Issues
Supplement, and other information readily available to Commerce
indicates that the petitioner has established industry support for the
Petition.\20\ 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).\21\ 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.\22\ 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.\23\ 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.\24\
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\20\ Id.
\21\ Id.; see also section 732(c)(4)(D) of the Act.
\22\ See Attachment II of the China AD Initiation Checklist.
\23\ Id.
\24\ 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 from China exceed the negligibility threshold provided
for under section 771(24)(A) of the Act.\25\
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\25\ For further information regarding negligibility and the
injury allegation, 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 Erythritol from the People's Republic of China (Attachment
III).
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The petitioner contends that the industry's injured condition is
illustrated by the significant and increasing volume of subject
imports; reduced market share; underselling and price depression and/or
suppression; lost sales and revenues; and declines in the domestic
industry's production, capacity utilization, U.S. shipments, employment
variables, and financial performance.\26\ We assessed the allegations
and supporting evidence regarding material injury, threat of material
injury, causation, cumulation, as well as negligibility, and we have
determined that these allegations are properly supported by adequate
evidence and meet the statutory requirements for initiation.\27\
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\26\ See Attachment III of the China AD Initiation Checklist.
\27\ Id.
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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 a LTFV investigation
of imports of erythritol 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 transaction-specific
average unit values (AUVs) (i.e., month- and port-specific AUVs)
derived from official import statistics and tied to ship manifest
data.\28\ The petitioner made certain adjustments to U.S. price to
calculate a net ex-factory U.S. price, where applicable.\29\
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\28\ See China AD Initiation Checklist.
\29\ Id.
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Normal Value
Commerce considers China to be an NME country.\30\ In accordance
with
[[Page 1960]]
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 this 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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\30\ 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 Malaysia 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.\31\ The petitioner provided
publicly available information from Malaysia to value all FOPs except
labor.\32\ Consistent with Commerce's recent practice in cases
involving Malaysia as a surrogate country,\33\ to value labor, the
petitioner provided data from another surrogate country, the Republic
of T[uuml]rkiye (T[uuml]rkiye). Based on the information provided by
the petitioner, we believe it is appropriate to use Malaysia as a
surrogate country for China to value all FOPs except labor and
T[uuml]rkiye to value labor for initiation purposes.
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\31\ See China AD Initiation Checklist.
\32\ Id.
\33\ See, e.g., Certain Collated Steel Staples from the People's
Republic of China: Final Results of Antidumping Duty Administrative
Review; and Final Determination of No Shipments; 2021-2022, 88 FR
85242 (December 7, 2023), and accompanying Issues and Decision
Memorandum (IDM) at Comment 2; and Light-Walled Rectangular Pipe and
Tube from the People's Republic of China: Final Results of
Antidumping Duty Administrative Review, 88 FR 15671 (March 14,
2023), and accompanying IDM at Comment 2.
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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 production experience and product-specific
consumption rates as a surrogate to value Chinese manufacturers'
FOPs.\34\ Additionally, the petitioner calculated factory overhead,
selling, general, and administrative expenses, and profit based on the
experience of a Malaysian producer of comparable merchandise.\35\
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\34\ See China AD Initiation Checklist.
\35\ Id.
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Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of erythritol 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 for erythritol from China covered by this initiation
range from 270.00 to 450.64 percent.\36\
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\36\ Id.
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Initiation of LTFV Investigation
Based upon the examination of the Petition and supplemental
responses, we find that they meet the requirements of section 732 of
the Act. Therefore, we are initiating a LTFV investigation to determine
whether imports of erythritol 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 identified 83 companies in China as
producers and/or exporters of erythritol.\37\ Our standard practice for
respondent selection in AD investigations involving NME countries is to
select respondents based on quantity and value (Q&V) questionnaires in
cases where 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 83 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 in China that
are identified in the U.S. Customs and Border Protection POI entry data
for which there is complete address information on the record.\38\
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\37\ See Petition at Volume I (pages I-7 and I-8 and Exhibit I-
5); see also General Issues Supplement at 1 and Exhibit GEN-S-1.
\38\ See Memorandum, ``Release of U.S. Customs and Border
Protection Entry Data,'' dated December 31, 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 erythritol 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 January 16, 2025, 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
[[Page 1961]]
Q&V questionnaire response will not receive separate rate
consideration.
Use of Combination Rates
Commerce will calculate combination rates for certain respondents
that are eligible for a separate rate in an NME investigation. The
Separate Rates and Combination Rates Bulletin states:
{w{time} hile continuing the practice of assigning separate
rates only to exporters, all separate rates that {Commerce{time}
will now assign in its NME investigation will be specific to those
producers that supplied the exporter during the period of
investigation. Note, however, that one rate is calculated for the
exporter and all of the producers which supplied subject merchandise
to it during the period of investigation. This practice applies both
to mandatory respondents receiving an individually calculated
separate rate as well as the pool of non-investigated firms
receiving the {weighted average{time} of the individually
calculated rates. This practice is referred to as the application of
``combination rates'' because such rates apply to specific
combinations of exporters and one or more producers. The cash-
deposit rate assigned to an exporter will apply only to merchandise
both exported by the firm in question and produced by a firm that
supplied the exporter during the period of investigation.\39\
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\39\ 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), copies of the public version of the Petition have 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 erythritol from China are materially
injuring, or threatening material injury to, a U.S. industry.\40\ A
negative ITC determination will result in the investigation being
terminated.\41\ Otherwise, this LTFV investigation will proceed
according to statutory and regulatory time limits.
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\40\ See section 733(a) of the Act.
\41\ 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 \42\ 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.\43\ 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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\42\ See 19 CFR 351.301(b).
\43\ 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.\44\ 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.\45\
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\44\ 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.
\45\ 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.\46\
Parties must use the certification formats provided in 19 CFR
351.303(g).\47\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\46\ See section 782(b) of the Act.
\47\ 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).\48\
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\48\ 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: January 2, 2025.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigation
The product within the scope of this investigation is
erythritol, which is a sugar alcohol, commonly referred to as a
polyol, typically produced by the fermentation of glucose using
enzymes and yeast or yeast-like fungi (though the scope includes
erythritol produced using any other feedstock or organism).
Erythritol is an organic compound
[[Page 1962]]
with the molecular formula C4H10O4
and a Chemical Abstracts Service (CAS) registry number of 149-32-6.
Other names for erythritol include meso-erythritol, (2R, 3S)-butan-
1,2,3,4-tetrol, butane-1,2,3,4-tetrol, or meso-1,2,3,4-
Tetrahydryoxybutane.
Erythritol typically appears as a white crystalline, odorless
product that rapidly dissolves in water. While erythritol is
typically produced in the crystalline form or as a fine powder or in
directly compressible form, the scope of this investigation covers
all physical forms and grades of erythritol, including organic
erythritol.
The merchandise covered by this investigation is classifiable
under Harmonized Tariff Schedule of the United States (HTSUS)
subheading 2905.49.4000. Erythritol may also enter under HTSUS
subheading 2106.90.9998. Although the HTSUS subheadings are provided
for convenience and customs purposes, the written description of the
merchandise covered by this investigation is dispositive.
[FR Doc. 2025-00258 Filed 1-8-25; 8:45 am]
BILLING CODE 3510-DS-P
