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[Federal Register Volume 89, Number 222 (Monday, November 18, 2024)]
[Notices]
[Pages 90671-90673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26770]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-173]

Vanillin from the People's Republic of China: Preliminary 
Affirmative Countervailing Duty Determination and Alignment of Final 
Determination with Final Antidumping Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of vanillin from the People's Republic of China 
(China). The period of investigation is January 1, 2023, through 
December 31, 2023. Interested parties are invited to comment on this 
preliminary determination.

DATES: Applicable November 18, 2024.

FOR FURTHER INFORMATION CONTACT: Jeff Pedersen, 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) 482-2769.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this countervailing duty (CVD) 
investigation on July 1, 2024.\1\ On July 22, 2024, Commerce tolled 
certain deadlines in this administrative proceeding by seven days.\2\ 
On August 13, 2024, Commerce postponed the preliminary determination of 
this investigation until

[[Page 90672]]

November 12, 2024.\3\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\4\
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    \1\ See Vanillin from the People's Republic of China: Initiation 
of Countervailing Duty Investigation, 89 FR 54421 (July 1, 2024) 
(Initiation Notice).
    \2\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 22, 2024.
    \3\ See Vanillin from the People's Republic of China: 
Postponement of Preliminary Determination in the Countervailing Duty 
Investigation, 89 FR 65845 (August 13, 2024).
    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Countervailing Duty Investigation 
of Vanillin from the People's Republic of China,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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    A list of topics discussed in the Preliminary Decision Memorandum 
is included as Appendix II to this notice. The Preliminary Decision 
Memorandum is a public document and is on file electronically via 
Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at https://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.

Scope of the Investigation

    The product covered by this investigation is vanillin 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, (i.e., scope).\6\ No interested 
party commented on the scope of the investigation as it appeared in the 
Initiation Notice.
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    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \6\ See Initiation Notice, 89 FR at 54421-22.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\7\
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    \7\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, because it finds that one or more respondents 
did not act to the best of their ability to respond to Commerce's 
requests for information, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\8\ 
For further information, see the ``Use of Facts Otherwise Available and 
Adverse Inferences'' section in the Preliminary Decision Memorandum.
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    \8\ See sections 776(a) and (b) of the Act.
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Alignment

    In accordance with section 705(a)(1) of the Act and 19 CFR 
351.210(b)(4), Commerce is aligning the final CVD determination in this 
investigation with the final determination in the companion antidumping 
duty (AD) investigation of vanillin from China based on a request made 
by Solvay USA LLC (the petitioner).\9\ Consequently, the final CVD 
determination will be issued on the same date as the final AD 
determination, which is currently scheduled to be issued no later than 
March 24, 2025, unless postponed.
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    \9\ See Petitioner's Letter, ``Request to Align Final 
Countervailing Duty Determination with the Companion Antidumping 
Duty Final Determination,'' dated October 17, 2024.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
rates that are zero, de minimis, or based entirely under section 776 of 
the Act.
    In this investigation, Commerce preliminarily calculated an 
individual estimated countervailable subsidy rate for Jiaxing Guihua 
Chemical Import and Export Co., Ltd. (Guihua), the only individually 
examined exporter/producer in this investigation. Because the only 
individually calculated rate is not zero, de minimis, or based entirely 
on facts otherwise available, the estimated weighted-average rate 
calculated for Guihua is the rate preliminarily assigned to all other 
producers and exporters, pursuant to section 705(c)(5)(A)(i) of the 
Act.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
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Jiaxing Guihua Chemical Import and Export Co., Ltd.\10\.           27.33
All Others..............................................           27.33
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Disclosure
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    \10\ As discussed in the Preliminary Decision Memorandum, 
Commerce preliminarily finds Guihua to be cross owned with the 
following companies: Jiaxing Zhongua Chemical Co. Ltd., Zhejiang 
Zonghua Flavor Co., Ltd., and Jiaxing Zhonghua Thermal Power 
Development Co., Ltd.
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    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement or, if there is no public 
announcement, within five days of the date of publication of this 
notice in the Federal Register, 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.

Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Verification

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

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 verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in the 
case briefs, may be

[[Page 90673]]

filed not later than five days after the date for filing case 
briefs.\11\ 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.\12\
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    \11\ 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).
    \12\ See 19 CFR 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 briefs 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.\13\ 
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 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).\14\
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    \13\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \14\ 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, which is limited to covering 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 in 
the Federal Register. Hearing requests should contain 1) the 
requestor's name, address, and telephone number; 2) the number of 
participants and whether any participant is a foreign national; and 3) 
a list of the issues to be discussed. Oral presentations at the hearing 
will be limited to issues raised in the briefs. If a request for a 
hearing is made, parties will be notified of the time and date for the 
hearing.\15\ Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.
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    \15\ See 19 CFR 351.310(d).
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    All submissions, including case and rebuttal briefs, as well as 
hearing requests, should be filed using ACCESS. An electronically-filed 
document must be received successfully in its entirety by ACCESS by 
5:00 p.m. Eastern Time on the established deadline.

U.S. International Trade Commission (ITC) Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the ITC of its determination. 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 vanillin from China are materially 
injuring, or threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 703(f) and 777(i) of the Act, and 19 CFR 351.205(c).

    Dated: November 12, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by the investigation is vanillin, with 
the molecular formula C8H8O3 or 
C9H10O3. For purposes of this 
investigation, vanillin consists of natural vanillin, synthetic 
vanillin, bio-sourced synthetic vanillin (biovanillin) (each also 
known as 4-Hydroxy-3-methoxybenzaldehyde), and ethylvanillin (also 
known as 3-Ethoxy-4-hydroxybenzaldehyde). Vanillin covered by this 
investigation is a chemical compound with the Chemical Abstracts 
Service (CAS) number 121-33-5 or 121-32-4. Vanillin is covered by 
the investigation regardless of whether it is in a crystalline 
powder or crystal form. Vanillin is covered by the scope of the 
investigation, irrespective of purity, particle size, or physical 
form.
    Merchandise subject to the investigation is specified within the 
Harmonized Tariff Schedule of the United States (HTSUS) under 
subheading 2912.41.0000 and 2912.42.0000. The HTSUS subheadings and 
CAS registry numbers are provided for convenience and customs 
purposes only. The written description of the merchandise covered by 
the investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Alignment
VI. Injury Test
VII. Analysis of China's Financial System
VIII. Diversification of China's Economy
IX. Use of Facts Otherwise Available and Adverse Inferences
X. Subsidies Valuation
XI. Benchmarks
XII. Analysis of Programs
XIII. Recommendation

[FR Doc. 2024-26770 Filed 11-15-24; 8:45 am]
 BILLING CODE 3510-DS-P
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