[Federal Register Volume 83, Number 243 (Wednesday, December 19, 2018)]
[Notices]
[Pages 65143-65145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27426]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-985]


Xanthan Gum From the People's Republic of China: Final Results of 
Antidumping Duty Administrative Review, Final Determination of No 
Shipments, and Partial Discontinuation of Antidumping Duty 
Administrative Review; 2016-2017

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

SUMMARY: The Department of Commerce (Commerce) determines that Meihua 
Group International Trading (Hong Kong) Limited, Langfang Meihua 
Biotechnology Co., Ltd., and Xinjiang Meihua Amino Acid Co., Ltd. 
(collectively, Meihua) did not make sales of subject merchandise below 
normal value. Furthermore, we have discontinued the review with respect 
to Neimenggu Fufeng Biotechnologies Co., Ltd. (a.k.a. Inner Mongolia 
Fufeng Biotechnologies Co., Ltd.)/Shandong Fufeng Fermentation Co., 
Ltd./Xinjiang Fufeng Biotechnologies Co., Ltd. (collectively, Fufeng). 
The period of review (POR) is July 1, 2016, through June 30, 2017.

DATES: Applicable December 19, 2018.

FOR FURTHER INFORMATION CONTACT: Eli Lovely or Aleksandras Nakutis, AD/
CVD Operations, Office IV, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-1593 and (202) 
482-3147, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    Commerce published its Preliminary Results on August 14, 2018.\1\ 
Although Commerce calculated an antidumping duty margin for Fufeng in 
the Preliminary Results, we are discontinuing this review, with respect 
to Fufeng, as a result of the Court of International Trade's (CIT) 
final court decision in CP Kelco US, Inc. v. United States.\2\ On 
September 20, 2018, Fufeng and Tate and Lyle submitted case briefs.\3\ 
No other interested party filed comments.
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    \1\ See Xanthan Gum from the People's Republic of China: 
Preliminary Results of the Antidumping Duty Administrative Review, 
and Preliminary Determination of No Shipments; 2016-2017, 83 FR 
40229 (August 14, 2018) (Preliminary Results), and accompanying 
Preliminary Decision Memorandum.
    \2\ See CP Kelco US, Inc. v. United States, Slip Op. 18-120 (CIT 
Sept. 17, 2018)(CP Kelco US); see also Xanthan Gum from the People's 
Republic of China: Notice of Court Decision Not in Harmony With 
Amended Final Determination in Less Than Fair Value Investigation; 
Notice of Amended Final Determination Pursuant to Court Decision; 
Notice of Revocation of Antidumping Duty Order in Part; and 
Discontinuation of Fourth and Fifth Antidumping Duty Administrative 
Reviews in Part, 83 FR 52205 (October 16, 2018) (Xanthan Gum 
Timken).
    \3\ See letter from Tate and Lyle, re: ``Xanthan Gum from 
China--Tate & Lyle Case Brief,'' dated September 20, 2018; see also 
letter from Fufeng, re: ``Fufeng Case Brief in the Fourth 
Administrative Review of Antidumping Duty Order on Xanthan Gum from 
the People's Republic of China (A-570-985),'' dated September 20, 
2018.
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Scope of the Order

    The scope of the order covers dry xanthan gum, whether or not 
coated or blended with other products. Further, xanthan gum is included 
in this order regardless of physical form, including, but not limited 
to, solutions, slurries, dry powders of any particle size, or unground 
fiber. Merchandise covered by the scope of this order is classified in 
the Harmonized Tariff Schedule of the United States at subheading 
3913.90.20. Although this tariff classification is provided for 
convenience and customs purposes, the written description remains 
dispositive.\4\
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    \4\ For the full text of the scope of the order, see Memorandum, 
``Issues and Decision Memorandum for the Final Results of the 
Antidumping Duty Administrative Review: Xanthan Gum from the 
People's Republic of China; 2016-2017,'' (Issues and Decision 
Memorandum), dated concurrently with this notice.
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Analysis of Comments Received

    We addressed issues raised in the case briefs submitted by parties 
in this review in the Issues and Decision Memorandum, which is hereby 
adopted by this notice. As the review is being discontinued with 
respect to Fufeng, Commerce considers all issues raised concerning 
Fufeng moot and has not addressed them in the Issues and Decision 
Memorandum, with the exception of one issue raised. Appendix I to this 
notice provides the issue which parties raised, and that Commerce 
considered. The Issues and 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 http://access.trade.gov and 
it is available to all parties in the Central Records Unit of the main 
Department of Commerce building, Room B8024. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
on the internet at http://enforcement.trade.gov/frn/. The signed Issues 
and Decision Memorandum and the electronic version are identical in 
content.

Changes Since the Preliminary Results

    As discussed above, we are discontinuing the review with respect to 
Fufeng. Because we are discontinuing the review with respect to Fufeng, 
the dumping margin assigned to separate-rate respondents has changed 
since the Preliminary Results.

Separate Rates

    In the Preliminary Results, we found that Fufeng, Meihua, CP Kelco 
(Shandong) Biological Company Limited (CP Kelco), Deosen Biochemical 
Ltd./Deosen Biochemical (Ordos) Ltd. (collectively Deosen), and 
Shanghai Smart Chemicals Co., Ltd. (Shanghai Smart) demonstrated their 
eligibility for a separate rate, but that the non-individually examined 
respondent,

[[Page 65144]]

Hebei Xinhe Biochemical Co., Ltd., did not demonstrate its eligibility 
for a separate rate because it failed to file a separate rate 
application or a separate rate certification.\5\ Thus, Commerce treated 
Hebei Xinhe Biochemical Co., Ltd. as part of the China-wide entity. No 
parties commented on our preliminary separate rate determinations. For 
the final results of review, we have decided to continue to grant 
Meihua, CP Kelco, Deosen, and Shanghai Smart separate rates status. We 
are discontinuing the review with respect to Fufeng.
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    \5\ See Preliminary Results, 83 FR at 40230.
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Final Determination of No Shipments

    In the Preliminary Results, Commerce found that A.H.A. 
International Co., Ltd. (AHA), and Jianlong Biotechnology Co., Ltd. 
(Jianlong) (previously known as Inner Mongolia Jianlong Biochemical 
Co., Ltd. (IMJ)) had no shipments and, therefore, no reviewable 
transactions during the POR.\6\ No parties commented on this 
determination. For the final results of review, we continue to find 
that these companies had no shipments during the POR.
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    \6\ Id.
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Partial Discontinuation of Antidumping Duty Administrative Review

    On September 17, 2018, the CIT issued a final decision sustaining 
Commerce's remand redetermination wherein Fufeng's weighted-average 
dumping margin from the AD investigation of xanthan gum from the China 
changed from 8.69 percent to 0.00 percent.\7\ As a result of the CIT's 
final court decision and Fufeng's exclusion from the AD order on 
xanthan gum from China, Commerce is discontinuing the review of Fufeng, 
during the pendency of the appeals process, because Fufeng is no longer 
subject to the order.\8\ The CIT's decision was appealed to the United 
States Court of Appeals for the Federal Circuit (CAFC) on November 7, 
2018.\9\
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    \7\ See CP Kelco US, 2018 WL 4469912, at *2.
    \8\ See Xanthan Gum Timken at 83 FR 52205.
    \9\ See CAFC Notice of Docketing, CP Kelco US. Inc. v. United 
States, Case No. 19-1207, dated November 15, 2018.
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Dumping Margin for Non-Individually Examined Respondents Granted 
Separate Rate Status

    The statute and Commerce's regulations do not address what rate to 
apply to respondents not selected for individual examination when 
Commerce limits its examination in an administrative review pursuant to 
section 777A(c)(2) of the Act. Generally, Commerce looks to section 
735(c)(5) of the Act, which provides instructions for calculating the 
all-others rate in an investigation, for guidance when calculating the 
rate for non-selected respondents that are not examined individually in 
an administrative review. Section 735(c)(5)(A) of the Act states that 
the all-others rate should be calculated by averaging the weighted-
average dumping margins for individually-examined respondents, 
excluding rates that are zero, de minimis, or based entirely on facts 
available. Where the rates for the individually examined companies are 
all zero, de minimis, or based entirely on facts available, section 
735(c)(5)(B) of the Act provides that Commerce may use ``any reasonable 
method'' to establish the all others rate. Because we preliminarily 
calculated a weighted-average dumping margin for Meihua of zero 
percent, and we are discontinuing the review with respect to Fufeng, we 
assigned a dumping margin equal to zero percent to individual separate 
rate respondents not selected for examination, which is based solely on 
Meihua's weighted-average dumping margin of zero percent.

Final Results of Administrative Review

    We determine that the following weighted-average dumping margin 
exists for the POR:

------------------------------------------------------------------------
                                                     Weighted-average
                    Exporter                         dumping margins
                                                       (percentage)
------------------------------------------------------------------------
Meihua Group International Trading (Hong Kong)                      0.00
 Limited/Langfang Meihua Biotechnology Co.,
 Ltd./Xinjiang Meihua Amino Acid Co., Ltd......
CP Kelco (Shandong) Biological Company Limited.                     0.00
Deosen Biochemical Ltd./Deosen Biochemical                          0.00
 (Ordos) Ltd...................................
Shanghai Smart Chemicals Co., Ltd..............                     0.00
------------------------------------------------------------------------

Assessment Rates

    Pursuant to section 751(a)(2)(A) of the Act and 19 CFR 351.212(b), 
Commerce has determined, and U.S. Customs and Border Protection (CBP) 
shall assess, antidumping duties on all appropriate entries of subject 
merchandise in accordance with the final results of this review. 
Commerce intends to issue assessment instructions to CBP 15 days after 
the publication date of the final results of this review. We intend to 
instruct CBP to liquidate POR entries of subject merchandise from 
Meihua, CP Kelco (Shandong), Deosen, and Shanghai Smart without regard 
to antidumping duties.\10\ Furthermore, in accordance with the Xanthan 
Gum Timken, we intend to instruct CBP to continue to suspend POR 
entries of subject merchandise produced and exported by Fufeng at a 
rate of 0.00 percent during the pendency of the appeals process.\11\
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    \10\ See Antidumping Proceedings: Calculation of the Weighted-
Average Dumping Margin and Assessment Rate in Certain Antidumping 
Proceedings: Final Modification, 77 FR 8101, 8103 (February 14, 
2012).
    \11\ See Xanthan Gum Timken at 83 FR 52206.
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    For entries that were not reported in the U.S. sales database 
submitted by an exporter individually examined during this review, but 
that entered under the case number of that exporter (i.e., at the 
individually-examined exporter's cash deposit rate), Commerce will 
instruct CBP to liquidate such entries at the China-wide rate (i.e., 
154.07 percent). Additionally, if Commerce determines that an exporter 
under review had no shipments of the subject merchandise, any suspended 
entries that entered under that exporter's case number will be 
liquidated at the China-wide rate.

Cash Deposit Requirements

    The following cash deposit requirements will be effective for 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of review, as provided for by section 751(a)(2)(C) of the 
Act: (1) For the exporters listed in the table above, the cash deposit 
rate will be the rate established in the final results of review that 
is listed for the exporter in the table; (2) for previously 
investigated or reviewed China and non-China exporters not listed in 
the table above

[[Page 65145]]

that have separate rates, the cash deposit rate will continue to be the 
existing exporter-specific rate published for the most recent period; 
(3) for all China exporters of subject merchandise that have not been 
found to be entitled to a separate rate, the cash deposit rate will be 
the rate previously established for the China-wide entity, which is 
154.07 percent; and (4) for all non-China exporters of subject 
merchandise which have not received their own rate, the cash deposit 
rate will be the rate applicable to the China exporter that supplied 
that non-China exporter. The cash deposit requirements, when imposed, 
shall remain in effect until further notice. Furthermore, in accordance 
with the Xanthan Gum Timken, we intend to instruct CBP to continue to 
suspend POR entries of subject merchandise, produced and exported by 
Fufeng, at a cash deposit rate of 0.00 percent during the pendency of 
the appeals process.\12\
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    \12\ See Xanthan Gum Timken at 83 FR 52206.
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Notification to Importers Regarding the Reimbursement of Duties

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping duties prior to liquidation of the 
relevant entries during this POR. Failure to comply with this 
requirement could result in Commerce's presumption that reimbursement 
of antidumping duties occurred and the subsequent assessment of double 
antidumping duties.

Notification Regarding Administrative Protective Order (APO)

    This notice also serves as a reminder to parties subject to APO of 
their responsibility concerning the return or destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305, which continues to govern business proprietary information in 
this segment of the proceeding. Timely written notification of the 
return or destruction of APO materials, or conversion to judicial 
protective order, is hereby requested. Failure to comply with the 
regulations and terms of an APO is a violation which is subject to 
sanction.
    We are issuing these final results of administrative review and 
publishing this notice in accordance with sections 751(a)(1) and 777(i) 
of the Act.

    Dated: December 12, 2018.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Discussion of Issue
    A. Comment 1: Dumping Margin for Third-Country Exporters of 
Fufeng's Xanthan Gum

[FR Doc. 2018-27426 Filed 12-18-18; 8:45 am]
 BILLING CODE 3510-DS-P