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[Federal Register Volume 90, Number 10 (Thursday, January 16, 2025)]
[Notices]
[Pages 4720-4723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00865]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-172]

Vanillin 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 vanillin 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 October 1, 2023, 
through March 31, 2024. Interested parties are invited to comment on 
this preliminary determination.

DATES: Applicable January 16, 2025.

FOR FURTHER INFORMATION CONTACT: Claudia Cott or Bryan Hansen, AD/CVD 
Operations, Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4270 or (202) 482-3683, 
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 July 1, 
2024.\1\ On July 22, 2024, Commerce tolled certain deadlines in this 
investigation by seven days.\2\ On October 22, 2024, Commerce postponed 
the preliminary determination of this investigation.\3\ The deadline 
for the preliminary determination is now January 8, 2025.
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    \1\ See Vanillin from the People's Republic of China: Initiation 
of Less-Than-Fair Value Investigation, 89 FR 54424 (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 Less-Than-Fair 
Value Investigation, 89 FR 84330 (October 22, 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 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.
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    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Investigation of Sales at Less Than 
Fair Value of Vanillin from People's Republic of China,'' dated 
concurrently with and hereby adopted by this notice (Preliminary 
Decision Memorandum).
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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. As a result, Commerce is not preliminarily modifying 
the scope language as it appeared in the Initiation Notice. 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 54424.

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[[Page 4721]]

Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices and 
constructed export prices in accordance with sections 772(a) and (b) of 
the Act, respectively. Because China is a non-market economy (NME) 
within the meaning of section 771(18) of the Act, Commerce has 
calculated normal value (NV) 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. For a full description 
of the methodology underlying Commerce's preliminary determination, see 
the Preliminary Decision Memorandum.

Combination Rates

    In the Initiation Notice,\7\ 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.\8\ In this investigation, we assigned a 
producer/exporter combination rate for the companies that are listed in 
the ``Preliminary Determination'' and eligible for separate rates.
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    \7\ Id.
    \8\ 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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Separate Rates

    We preliminarily granted a separate rate to certain separate rate 
respondents that we did not select for individual examination.\9\ In 
calculating the rate for non-individually examined separate rate 
respondents in an NME LTFV investigation, Commerce normally looks to 
section 735(c)(5)(A) of the Act, which pertains to the calculation of 
the all-others rate in a market economy LTFV investigation, for 
guidance. Pursuant to section 735(c)(5)(A) of the Act, normally this 
rate shall be an amount equal to the weighted-average of the estimated 
weighted-average dumping margins established for those companies 
individually examined, excluding zero and de minimis dumping margins, 
and any dumping margins based entirely under section 776 of the Act.
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    \9\ See the Preliminary Decision memorandum for additional 
details.
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    Commerce calculated an individual estimated weighted-average 
dumping margin for Jiangxi Brother Pharmaceutical Co., Ltd. (Jiangxi 
Brother) that is not zero, de minimis, or based entirely on facts 
otherwise available. Thus, the weighted-average dumping margin 
calculated for Jiangxi Brother is the basis to determine the weighted-
average dumping margin for the non-examined, separate rate companies in 
this investigation.\10\ See the table below in the ``Preliminary 
Determination'' section of this notice.
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    \10\ See Memorandum, ``Calculation of the Dumping Margin for 
Respondents Not Selected for Individual Examination,'' dated January 
8, 2025.
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Preliminary Determination

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

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                                                                                               Cash deposit rate
                                                                           Weighted-average      (adjusted for
                 Exporter                             Producer              dumping margin     subsidy offsets)
                                                                               (percent)           (percent)
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Jiangxi Brother Pharmaceutical Co., Ltd...  Jiangxi Brother                           186.20              186.15
                                             Pharmaceutical Co., Ltd.
Chongqing Thrive Fine Chemicals Co., Ltd..  Chongqing Thrive Fine                     186.20              186.15
                                             Chemicals Co., Ltd.
HongKong Wictive Merchants Co., Ltd.......  Kunshan Asia Aroma Corp.,                 186.20              186.15
                                             Ltd.
Kunshan Asia Aroma Corp., Ltd.............  Kunshan Asia Aroma Corp.,                 186.20              186.15
                                             Ltd.
Mianyang Sunshine Bio-Tech Co., Ltd.......  Mianyang Sunshine Bio-Tech                186.20              186.15
                                             Co., Ltd.
Shanghai Fuxin Fine Chemical Co., Ltd.....  Jiaxing Zhonghua Chemical                 186.20              186.15
                                             Co., Ltd.
Shenzhen Siyomicro Bio-Tech Co., Ltd......  Shenzhen Siyomicro Bio-Tech               186.20              186.15
                                             Co., Ltd.
Wuxi Lotus Essence Co., Ltd...............  Jiaxing Zhonghua Chemical                 186.20              186.15
                                             Co., Ltd.
Xiamen Bestally Biotechnology Co., Ltd....  Xiamen Oamic Biotech Co.,                 186.20              186.15
                                             Ltd.
China-Wide Entity.........................  ............................            * 379.87              379.82
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* This rate is based on facts available with adverse inferences.

Suspension of Liquidation

    In accordance with section 733(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 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 
Chinese 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 Chinese 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,

[[Page 4722]]

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 the CVD 
provisional measures expire.
    These suspension of liquidation instructions will remain in effect 
until further notice.

Disclosure

    Commerce intends to disclose to interested parties the calculations 
and analysis it performed in connection with this preliminary 
determination within five days of the 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.

Public Comment

    Case briefs or other written comments on non-scope issues 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.\11\ A timeline for the 
submission of case briefs and written comments will be notified to 
interested parties at a later date. 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.\12\ 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.\13\
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    \11\ Case and rebuttal briefs submitted in response to this 
preliminary determination should not include scope-related issues. 
See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for general 
filing requirements).
    \12\ 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).
    \13\ 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.\14\ 
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 public 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).\15\
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    \14\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \15\ 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 in the Federal Register. 
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. Parties should confirm the date, 
time, and location of the hearing two days before the scheduled date.

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 petitioner. 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 December 24, 2024, Jiangxi Brother requested that Commerce 
postpone the final determination and that the provisional measures be 
extended to a period not to exceed six months, respectively.\16\ 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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    \16\ See Jiangxi Brother's Letter, ``Request to Postpone Final 
Determination,'' dated December 24, 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).

[[Page 4723]]

    Dated: January 8, 2025.
Steven Presing,
Acting Deputy Assistant Secretary for Policy and Negotiations.

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. Period of Investigation
IV. Discussion of the Methodology
V. Adjustment Under Section 777(A)(f) of the Act
VI. Adjustment to Cash Deposit Rates for Export Subsidies in the 
Companion Countervailing Duty Investigation
VII. Recommendation

[FR Doc. 2025-00865 Filed 1-15-25; 8:45 am]
BILLING CODE 3510-DS-P
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