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[Federal Register Volume 89, Number 220 (Thursday, November 14, 2024)]
[Notices]
[Pages 89963-89965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26458]

[[Page 89963]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-160]

2,4-Dichlorophenoxyacetic Acid From the People's Republic of 
China: Preliminary Affirmative Determination of Sales at Less Than Fair 
Value, Postponement of Final Determination, and Extension of 
Provisional Measures

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that 2,4-dichlorophenoxyacetic acid (2,4-D) from the 
People's Republic of China (China) is being, or is likely to be, sold 
in the United States at less than fair value (LTFV). The period of 
investigation (POI) is July 1, 2023, through December 31, 2023. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable November 14, 2024.

FOR FURTHER INFORMATION CONTACT: Matthew Palmer or Anjali Mehindiratta, 
AD/CVD Operations, Office III, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-1678 
or (202) 482-9127, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on April 30, 
2024.\1\ On July 22, 2024, Commerce tolled certain deadlines in this 
administrative proceeding by seven days.\2\ On August 20, 2024, 
Commerce postponed the preliminary determination of this investigation 
and the revised deadline is now November 6, 2024.\3\
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    \1\ See 2,4-Dichlorophenoxyacetic Acid from the People's 
Republic of China and India: Initiation of Less-Than-Fair-Value 
Investigation, 89 FR 34200 (April 30, 2024) (Initiation Notice).
    \2\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 22, 2024.
    \3\ See 2,4-Dichlorophenoxyacetic Acid from India and the 
People's Republic of China: Postponement of Preliminary 
Determinations of Antidumping Duty Investigations, 89 FR 67420 
(August 20, 2024).
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\4\ A list of topics included in the Preliminary Decision 
Memorandum is included as an appendix to this notice. The Preliminary 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at https://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be found at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Less-Than-Fair-Value Investigation 
of 2,4-Dichlorophenoxyacetic Acid from the People's Republic of 
China,'' dated concurrently with this notice (Preliminary Decision 
Memorandum).
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Scope of the Investigation

    The products covered by this investigation is 2,4-D from China. For 
a complete description of the scope of this investigation, see Appendix 
I.

Scope Comments

    In accordance with the Preamble to Commerce's regulations,\5\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (scope).\6\ No interested party 
commented on the scope of the investigation as it appeared in the 
Initiation Notice. However, on June 11, 2024, in response to a 
supplemental questionnaire,\7\ the petitioner clarified its intent to 
include in the scope Harmonized Tariff Schedule of the United States 
(HTSUS) subheadings: 3808.93.0500 and 3808.93.1500.\8\ As a result, 
Commerce is preliminarily modifying the scope language as it appeared 
in the Initiation Notice to replace HTSUS subheadings 3808.93.0050 and 
3808.93.1400 with HTSUS subheadings 3808.93.0500 and 3808.93.1500. See 
the scope in Appendix I to this notice.
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    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \6\ See Initiation Notice, 89 FR at 34201.
    \7\ See Commerce's Letter, ``Scope Supplemental Questions,'' 
dated June 4, 2024.
    \8\ See Petitioner's Letter, ``Response to Scope Supplemental 
Questions,'' dated June 11, 2024.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices in 
accordance with section 772(a) of the Act. Because China is a non-
market economy, within the meaning of section 771(18) of the Act, 
Commerce has calculated normal value in accordance with section 773(c) 
of the Act. Furthermore, pursuant to sections 776(a) and (b) of the 
Act, Commerce preliminarily relied upon facts otherwise available, with 
adverse inferences, for the China-wide entity, which includes Shandong 
Weifang Rainbow Chemical Co., Ltd. (Weifang Rainbow), and the following 
companies: (1) CAC Nantong Chemical Co., Ltd.; (2) Changzhou Wintafone 
Chemical; (3) Gansu Xinlengmao Science and Tech Co.; (4) Gansu 
Yufengyuan Science and Tec Co., Ltd.; (4) Jilin Ivsheng Agrochemical 
Co., Ltd.; (6) Jingma Chemicals Ltd.; (7) Nanjing Agrochemical Co., 
Ltd.; (8) Ningxia Hanrun Biotechnology Co., Ltd.; and (9) Tangshan 
Shengdong Chemical Co., Lt. For a full description of the methodology 
underlying Commerce's preliminary determination, see the Preliminary 
Decision Memorandum.

Combination Rates

    In the Initiation Notice,\9\ Commerce stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Policy Bulletin 
05.1 describes this practice.\10\
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    \9\ See Initiation Notice, 89 FR at 34204.
    \10\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on 
Commerce's website at enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

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                                                                                                   Cash deposit
                                                                                     Weighted-    rate (adjusted
                   Producer                                 Exporter                  average       for subsidy
                                                                                  dumping margin     offsets)
                                                                                     (percent)       (percent)
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Jiangxi Tianyu Chemical Co., Ltd..............  Thai Harvest Ltd.\11\...........           17.07           16.44
China-Wide Entity \12\........................  ................................        * 127.21        * 126.58
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* Rate based on facts available with adverse inferences.

Suspension of Liquidation
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    \11\ We preliminarily find that Thai Harvest and Jiangxi Tianyu 
Chemical Co., Ltd., are affiliated and should be treated as a single 
entity pursuant to 19 CFR 351.401(f)(1) for the purposes of this 
preliminary determination. See Preliminary Determination Memorandum 
at Section V. ``Single Entity Analysis'' for further discussion of 
the preliminary collapsing determination.
    \12\ We preliminarily determine that application of facts 
available with an adverse inference is warranted with respect to 
mandatory respondent Shandong Weifang Rainbow Chemical Co., Ltd. 
(Weifang Rainbow). Accordingly, we are not granting a separate rate 
for Weifang Rainbow and consider the respondent a part of the China-
wide Entity.
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    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of subject merchandise, as described in Appendix I, entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register, as discussed below. 
Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 
351.205(d), Commerce will instruct CBP to require a cash deposit equal 
to the weighted average amount by which normal value exceeds U.S. 
price, as indicated in the chart above as follows: (1) for the 
producer/exporter combinations listed in the table above, the cash 
deposit rate is equal to the estimated weighted-average dumping margin 
listed for that combination in the table; (2) for all combinations of 
China producers/exporters of merchandise under consideration that have 
not established eligibility for their own separate rates, the cash 
deposit rate will be equal to the estimated weighted-average dumping 
margin established for the China-wide entity; and (3) for all third-
county exporters of merchandise under consideration not listed in the 
table above, the cash deposit rate is the cash deposit rate applicable 
to the China producer/exporter combination (or the China-wide entity) 
that supplied that third-country exporter.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion 
countervailing duty (CVD) proceeding when CVD provisional measures are 
in effect. Accordingly, where Commerce has made a preliminary 
affirmative determination for domestic subsidy pass-through or export 
subsidies, Commerce has offset the calculated estimated weighted-
average dumping margin by the appropriate rate(s). Any such adjusted 
rates may be found in the ``Preliminary Determination'' section's table 
of estimated weighted-average dumping margins above.
    Should provisional measures in the companion CVD investigation 
expire prior to the expiration of provisional measures in this LTFV 
investigation, Commerce will direct CBP to begin collecting cash 
deposits at a rate equal to the estimated weighted-average dumping 
margins calculated in this preliminary determination unadjusted for the 
passed-through domestic subsidies or for export subsidies at the time 
that the CVD provisional measures expire.
    These suspension of liquidation instructions will remain in effect 
until further notice.

Disclosure

    Commerce intends to disclose to parties to the proceeding the 
calculations and analysis it performed in this preliminary 
determination within five days of public announcement or, if there is 
no public announcement, within five days of the date of publication of 
this notice in the Federal Register in accordance with 19 CFR 
351.224(b).
    Consistent with 19 CFR 351.224(e), Commerce will analyze and, if 
appropriate, correct any timely allegations of significant ministerial 
errors by amending the preliminary determination. However, consistent 
with 19 CFR 351.224(d), Commerce will not consider incomplete 
allegations that do not address the significance standard under 19 CFR 
351.224(g) following the preliminary determination. Instead, Commerce 
will address such allegations in the final determination together with 
issues raised in the case briefs or other written comments.

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify information relied upon in making its final determination with 
regard to the cooperative mandatory respondent.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last final verification report is 
issued in this investigation.\13\ Rebuttal briefs, limited to issues 
raised in the case briefs, may be filed not later than five days after 
the date for filing case briefs.\14\ Interested parties who submit case 
briefs or rebuttal briefs in this proceeding must submit: (1) a table 
of contents listing each issue; and (2) a table of authorities.\15\
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    \13\ See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for 
general filing requirements).
    \14\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service, and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 
2023) (APO and Service Final Rule).
    \15\ See 19 351.309(c)(2) and (d)(2).
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    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their brief that should be limited to five pages 
total, including footnotes. In this investigation, we instead request 
that interested parties provide at the beginning of their briefs a 
public, executive summary for each issue raised in their briefs.\16\ 
Further, we request that interested parties limit their public 
executive summary of each issue to no more than 450 words, not 
including citations. We intend to use the public executive summaries as 
the basis of the comment summaries included in the issues and decision 
memorandum that will accompany the final determination in this 
investigation. We request that interested parties include footnotes for 
relevant citations in the executive

[[Page 89965]]

summary of each issue. Note that Commerce has amended certain of its 
requirements pertaining to the service of documents in 19 CFR 
351.303(f).\17\
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    \16\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \17\ See APO and Service Final Rule.
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at a time and date to be 
determined.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires 
that requests by respondents for postponement of a final antidumping 
duty determination be accompanied by a request for extension of 
provisional measures from a four-month period to a period not more than 
six months in duration.
    On October 18, 2024, Thai Harvest requested that Commerce postpone 
the final determination and that provisional measures be extended to a 
period not to exceed six months.\18\ On October 17, Corteva Agriscience 
LLC (the petitioner) also requested that Commerce postpone the final 
determination.\19\ In accordance with section 735(a)(2)(A) of the Act 
and 19 CFR 351.210(b)(2)(ii), because: (1) the preliminary 
determination is affirmative; (2) the requesting exporter accounts for 
a significant proportion of exports of the subject merchandise; and (3) 
no compelling reasons for denial exist, Commerce is postponing the 
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly, 
Commerce will make its final determination no later than 135 days after 
the date of publication of this preliminary determination.
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    \18\ See Thai Harvest's Letter, ``Postponement of Final 
Determination and Extension of Provisional Measures Period,'' dated 
October 18, 2024.
    \19\ See Petitioner's Letter, ``Petitioner's Request to Postpone 
Final Antidumping Duty Determination,'' dated October 17, 2024.
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U.S. International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the U.S. International Trade Commission (ITC) of its preliminary 
determination of sales at LTFV. If the final determination is 
affirmative, the ITC will determine before the later of 120 days after 
the date of this preliminary determination or 45 days after the final 
determination whether imports of subject merchandise are materially 
injuring, or threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This preliminary determination is issued and published in 
accordance with sections 733(f) and 777(i)(1) of the Act, and 19 CFR 
351.205(c).

    Dated: November 6, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is 2,4-
dichlorophenoxyacetic acid (2,4-D) and its derivative products, 
including salt and ester forms of 2,4-D. 2,4- D has the Chemical 
Abstracts Service (CAS) registry number of 94-75-7 and the chemical 
formula C8H6 Cl2O3.
    Salt and ester forms of 2,4-D include 2,4-D sodium salt (CAS 
2702-72-9), 2,4-D diethanolamine salt (CAS 5742-19-8), 2,4-D 
dimethyl amine salt (CAS 2008-39-1), 2,4-D isopropylamine salt (CAS 
5742-17-6), 2,4-D tri-isopropanolamine salt (CAS 3234180-3), 2,4-D 
choline salt (CAS 1048373-72-3), 2,4- D butoxyethyl ester (CAS 1929-
733), 2,4-D 2- ethylhexylester (CAS 1928-43-4), and 2,4-D 
isopropylester (CAS 94-11-1). All 2,4-D, as well as the salt and 
ester forms of 2,4-D, is covered by the scope irrespective of 
purity, particle size, or physical form.
    The conversion of a 2,4-D salt or ester from 2,4-D acid, or the 
formulation of nonsubject merchandise with the subject 2,4-D, its 
salts, and its esters in the country of manufacture or in a third 
country does not remove the subject 2,4-D, its salts, or its esters 
from the scope. For any such formulations, only the 2,4-D, 2,4-D 
salt, and 2,4-D ester components of the mixture is covered by the 
scope of the investigations. Formulations of 2,4-D are products that 
are registered for end-use applications with the Environmental 
Protection Agency and contain a dispersion agent.
    The country of origin of any 2,4-D derivative salt or ester is 
determined by the country in which the underlying 2,4-D acid is 
produced. 2,4-D, its salts, and its esters are classified under 
Harmonized Tariff Schedule of the United States (HTSUS) subheading 
2918.99.2010. Subject merchandise, including the abovementioned 
formulations, may also be classified under HTSUS 2922.12.0001, 
2921.11.0000, 2921.19.6195, 2922.19.9690, 3808.93.0500, and 
3808.93.1500. The HTSUS subheadings and CAS registry numbers are 
provided for convenience and customs purposes. The written 
description of the scope of the investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Application of Facts Available and Use of Adverse Inferences
V. Single Entity Analysis
VI. Discussion of the Methodology
    A. Non-Market Economy Country
    B. Surrogate Country and Surrogate Value Comments
    C. Separate Rates
    D. Combination Rates
    E. The China-Wide Entity
    F. Date of Sale
    G. Comparisons to Fair Value
    H. Export Price
    I. Value-Added Tax
    J. Normal Value
    K. Factor Valuation Methodology
VII. Adjustment Under Section 777(A)(F) of the Act
VIII. Adjustment to Cash Deposit Rates for Export Subsidies in the 
Companion Countervailing Duty Investigation
IX. Recommendation.

[FR Doc. 2024-26458 Filed 11-13-24; 8:45 am]
BILLING CODE 3510-DS-P
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