[Federal Register Volume 76, Number 240 (Wednesday, December 14, 2011)]
[Notices]
[Pages 77772-77775]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-32097]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-937]
Citric Acid and Certain Citrate Salts from the People's Republic
of China: Final Results of the First Administrative Review of the
Antidumping Duty Order
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On June 10, 2011, the Department of Commerce (``Department'')
published the preliminary results of the first administrative review of
the antidumping duty order on citric acid and certain citrate salts
(``citric acid'') from the People's Republic of China (``PRC''),
covering the period November 20, 2008, through April 30, 2010. See
Citric Acid and Certain Citrate Salts from the People's Republic of
China: Preliminary Results of the First Administrative Review of the
Antidumping Duty Order; and Partial Rescission of Administrative
Review, 76 FR 34048 (June 10, 2011) (``Preliminary Results''). We
invited interested parties to comment on our Preliminary Results. Based
on our findings from on-site verifications and analysis of the comments
received, we made certain changes to our margin calculations for the
respondents. The final dumping margins for this review are listed in
the ``Final Results of the Review'' section below.
DATES: Effective Date: December 14, 2011.
FOR FURTHER INFORMATION CONTACT: Krisha Hill or Maisha Cryor, AD/CVD
Operations, Office 4, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4037 or (202) 482-5831, respectively.
SUPPLEMENTARY INFORMATION:
Background
On June 10, 2011, the Department published the Preliminary Results
of the first administrative review of the antidumping duty order on
citric acid from the PRC. On June 30, 2011, both respondents, RZBC Co.,
Ltd., RZCB Imp. & Exp. Co., Ltd., and RZBC (Juxian) Co., Ltd.
(collectively ``RZBC'') and Yixing Union Biochemical Co., Ltd.
(``Yixing Union''), submitted surrogate value comments. On July 20,
2011, the Department released a Memorandum to the File, titled ``First
Administrative Review of the Antidumping Duty Order on Citric Acid and
Certain Citrate Salts from the People's Republic of China: Industry-
Specific Surrogate Wage Rate and Surrogate Financial Ratio
Adjustments,'' dated July 20, 2011 (``Wage Rate Memorandum''), for use
in these final results. On June 30, 2010, both RZBC and Yixing Union
submitted surrogate value comments. On August 3, 2011, Petitioners
submitted comments on the industry-specific surrogate wage rate
methodology and offered an alternative source to value the wage
rate.\1\ On August 4, 2011, the Department published a notice in the
Federal Register fully extending the time limit for the final results
of review by the full 60 days allowed under section 751(a)(3)(A) of the
Tariff Act of 1930, as amended (``the Act''), to December 7, 2011.\2\
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\1\ Petitioners are Archer Daniels Midland Company, Cargill,
Incorporated, and Tate & Lyle Americas LLC.
\2\ See Citric Acid and Certain Citrate Salts from the People's
Republic of China: Extension of Time Limit for the Final Results of
the Antidumping Duty Administrative Review, 76 FR 47146 (August 4,
2011).
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In preparation for verification, the Department issued supplemental
questionnaires to RZBC and Yixing Union on August 8, 2011. Yixing Union
submitted its supplemental questionnaire response, with an updated
factor of production (``FOP'') database, on August 23, 2011. RZBC
submitted its supplemental questionnaire response, with updated U.S.
sales and FOP databases, on August 24, 2011. From August 29, 2011, to
September 2, 2011, and from September 5, 2011, to September 9, 2011,
the Department conducted on-site verifications of RZBC and Yixing
Union, respectively. On October 12, 2011, RZBC, Yixing Union,
Petitioners, and the Government of the People's Republic of China,
Ministry of Commerce, Bureau of Fair Trade for Imports and Exports,
submitted case briefs. RZBC, Yixing Union, and Petitioners submitted
rebuttal briefs on October 18, 2011.
Period of Review
The period of review (``POR'') is November 20, 2008, through April
30, 2010.
Scope of the Order
The scope of the order includes all grades and granulation sizes of
citric acid, sodium citrate, and potassium citrate in their unblended
forms, whether dry or in solution, and regardless of packaging type.
The scope also includes blends of citric acid, sodium citrate, and
potassium citrate; as well as blends with other ingredients, such as
sugar, where the unblended form(s) of citric acid, sodium citrate, and
potassium citrate constitute 40 percent or more, by weight, of the
blend. The scope of the order also includes all forms of crude calcium
citrate, including dicalcium citrate monohydrate, and tricalcium
citrate tetrahydrate, which are intermediate products in the production
of citric acid, sodium citrate, and potassium citrate. The scope of the
order does not include calcium citrate that satisfies the standards set
forth in the United States Pharmacopeia and has been mixed with a
functional excipient, such as dextrose or starch, where the excipient
constitutes at least 2 percent, by weight, of the product. The scope of
the order includes the hydrous and anhydrous forms of citric acid, the
dihydrate and anhydrous forms of sodium citrate, otherwise known as
citric acid sodium salt, and the monohydrate and
[[Page 77773]]
monopotassium forms of potassium citrate. Sodium citrate also includes
both trisodium citrate and monosodium citrate, which are also known as
citric acid trisodium salt and citric acid monosodium salt,
respectively. Citric acid and sodium citrate are classifiable under
2918.14.0000 and 2918.15.1000 of the Harmonized Tariff Schedule of the
United States (``HTSUS''), respectively. Potassium citrate and crude
calcium citrate are classifiable under 2918.15.5000 and 3824.90.9290 of
the HTSUS, respectively. Blends that include citric acid, sodium
citrate, and potassium citrate are classifiable under 3824.90.9290 of
the HTSUS. Although the HTSUS subheadings are provided for convenience
and customs purposes, the written description of the merchandise is
dispositive.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs filed by parties
in this review are addressed in the Memorandum from Christian Marsh,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations, to Paul Piquado, Assistant Secretary for Import
Administration, titled ``Issues and Decision Memorandum for the Final
Results of the 2008-2010 Antidumping Duty Administrative Review of
Citric Acid and Certain Citrate Salts from the People's Republic of
China,'' dated concurrently with this notice (``Issues and Decision
Memorandum''), which is hereby adopted by this notice. A list of the
issues that parties raised and to which we responded in the Issues and
Decision Memorandum follows as an appendix to this notice. The Issues
and Decision Memorandum is a public document and is on file
electronically via Import Administration's Antidumping and
Countervailing Duty Centralized Electronic Service System (``IA
ACCESS''). Access to IA ACCESS is available in the Central Records
Unit, room 7046 of the main Department of Commerce building. In
addition, a complete version of the Issues and Decision Memorandum can
be accessed directly on the Internet at http://www.trade.gov/ia/. The
signed Issues and Decision Memorandum and the electronic versions of
the Issues and Decision Memorandum are identical in content.
Changes Since the Preliminary Results
Based on an analysis of the comments received from interested
parties, the Department has made certain changes to the margin
calculations. For the final results, the Department has made the
following changes:
Changes to Financial Ratio Calculations
We treated other income as an offset to selling, general
and administrative (``SG&A'') expenses.\3\
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\3\ See Issues and Decision Memorandum at Comment 9.
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We capped the foreign exchange gains and losses (net
figure) to not more than total financial expenses (i.e., financial
expenses, which includes interest expenses and provision and bank
charges, cannot be less than zero).\4\ Also, we made a profit
adjustment to exclude the amounts of foreign exchange gains above the
total financial expenses.
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\4\ See Issues and Decision Memorandum at Comment 10.
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We included the change in finished goods inventory in the
denominators of the SG&A and profit surrogate ratios for the final
results.\5\
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\5\ See Issues and Decision Memorandum at Comment 11.
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We adjusted profit to exclude interest income.
We excluded the current and deferred income tax expenses
from SG&A/interest expense.
Changes to RZBC's Margin Calculation
We adjusted RZBC's reported by-product offsets by adding
the cost of packaging high-protein corn feed and mycelium to the normal
value.\6\
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\6\ See Issues and Decision Memorandum at Comment 6.
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Changes to Yixing Union's Margin Calculation
We adjusted Yixing Union's reported by-product offsets by
adding the cost of packaging corn feed, mycelium, and calcium sulfate
dihydrate to the normal value.\7\
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\7\ See Issues and Decision Memorandum at Comment 6.
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Changes to Surrogate Values
We changed the surrogate value used to value the
respondents' sulfuric acid input.\8\ For the final results, we have
inflated the Indonesian sulfuric acid value used in the preceding less
than fair value investigation to the current POR.
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\8\ See Issues and Decision Memorandum at Comment 12.
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Changes to Calculation of Wage Rate
For the Preliminary Results, we calculated a wage-rate
based upon a simple average of industry-specific wage rates from
countries that were both economically comparable and significant
producers of comparable merchandise.\9\ However, for the final results,
we relied on a single surrogate country to value labor. Specifically,
we valued labor using an Indonesian industry-specific wage rate based
on labor cost and compensation data from Chapter 5B of the
International Labor Organization, under Sub-Classification 24 of the
ISIC-Revision 3 standard.\10\
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\9\ See Memorandum to the File regarding ``First Administrative
Review of the Antidumping Duty Order on Citric Acid and Certain
Citrate Salts from the People's Republic of China: Industry-Specific
Surrogate Wage Rate and Surrogate Financial Ratio Adjustments,''
dated July 20, 2011.
\10\ See Issues and Decision Memorandum at Comment 7.
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Surrogate Country
In the Preliminary Results, the Department stated that it selected
Indonesia as the appropriate surrogate country to use in this
administrative review for the following reasons: (1) It is a
significant producer of comparable merchandise; and (2) it is at a
similar level of economic development pursuant to section 773(c)(4) of
the Act. We used Thai and Indian surrogate values in certain instances
where Indonesian data was unavailable. Since the Department did not
receive comments on surrogate country selection after the Preliminary
Results, we have not made changes with respect to surrogate country
selection for the final results.
Separate Rates Determination
In proceedings involving non-market economy (``NME'') countries,
the Department holds a rebuttable presumption that all companies within
the country are subject to government control and, thus, should be
assessed a single antidumping duty rate. It is the Department's policy
to assign all exporters of subject merchandise in an NME country this
single rate unless an exporter can demonstrate that it is sufficiently
independent so as to be entitled to a separate rate.\11\
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\11\ See Notice of Final Determination of Sales at Less Than
Fair Value: Sparklers from the People's Republic of China, 56 FR
20588 (May 6, 1991), as further developed in Notice of Final
Determination of Sales at Less Than Fair Value: Silicon Carbide from
the People's Republic of China, 59 FR 22585 (May 2, 1994).
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The Department determined that RZBC and Yixing Union met the
criteria for separate rate status in the Preliminary Results.\12\ We
have not received any information since issuance of the Preliminary
Results that provides a basis for reconsidering this preliminary
determination. For the final results, the Department continues to find
that the evidence placed on the record of this administrative review by
the two respondents demonstrates both de jure and de facto absence of
government control with respect to each
[[Page 77774]]
company's respective exports of the subject merchandise. Therefore, the
Department continues to find that RZBC and Yixing Union meet the
criteria for a separate rate.
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\12\ See Preliminary Results, 76 FR at 34049-50.
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Export Subsidy Adjustment
Section 772(c)(1)(C) of the Act unconditionally states that U.S.
price ``shall be increased by the amount of any countervailing duty
imposed on the subject merchandise * * * to offset an export subsidy.''
\13\ The Department determined in its final results of the companion
countervailing duty administrative review that RZBC's merchandise
benefited from export subsidies.14 15 Therefore, we have
increased RZBC's U.S. price for countervailing duties imposed
attributable to export subsidies, where appropriate.\16\
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\13\ See, e.g., Carbazole Violet Pigment 23 from India: Final
Results of Antidumping Duty Administrative Review, 75 FR 38076,
38077 (July 1, 2010) and accompanying Issues and Decision Memorandum
at Comment 1.
\14\ See Citric Acid and Certain Citrate Salts from the People's
Republic of China: Final Results of Countervailing Duty
Administrative Review, dated December 5, 2011 (not yet published).
\15\ Yixing Union's merchandise was not found to have benefitted
from export subsidies. Id.
\16\ See Memorandum to the File regarding, ``Administrative
Review of the Antidumping Duty Order on Citric Acid and Certain
Citrate Salts from the People's Republic of China: Analysis of the
Final Results Margin Calculation for RZBC Co., Ltd., RZBC Import &
Export Co., Ltd., and RZBC (Juxian) Co., Ltd.,'' dated December 7,
2011.
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Final Results of the Review
The Department has determined that the following margins exist for
the period November 20, 2008, through April 30, 2010:
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Exporter Margin
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RZBC Co., Ltd./RZBC Imp. & Exp. Co., Ltd./RZBC 0%
(Juxian) Co., Ltd..
Yixing Union Biochemical Co., Ltd............. 1.11%
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Assessment Rates
Pursuant to section 751(a)(2)(A) of the Act and 19 CFR 351.212(b),
the Department will determine, 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. The Department intends to issue assessment instructions to CBP
15 days after the publication date of the final results of this review.
For assessment purposes, we calculated exporter/importer (or customer)
specific assessment rates for merchandise subject to this review
consistent with 19 CFR. 351.212(b)(1). Where appropriate, we calculated
an ad valorem rate for each importer (or customer) by dividing the
total dumping margins for reviewed sales to that party by the total
entered values associated with those transactions. For duty-assessment
rates calculated on this basis, we will direct CBP to assess the
resulting ad valorem rate against the entered customs values for the
subject merchandise. Where appropriate, we calculated a per-unit rate
for each importer (or customer) by dividing the total dumping margins
for reviewed sales to that party by the total sales quantity associated
with those transactions. For duty-assessment rates calculated on this
basis, we will direct CBP to assess the resulting per-unit rate against
the entered quantity of the subject merchandise. Where an importer (or
customer) specific assessment rate is de minimis (i.e., less than 0.50
percent), the Department will instruct CBP to assess that importer's
(or customer's) entries of subject merchandise without regard to
antidumping duties in accordance with 19 CFR 351.106(c)(2). The
Department intends to issue assessment instructions directly to CBP 15
days after the publication of this notice.
Cash-Deposit Requirements
The following cash-deposit requirements will be effective upon
publication of the final results of this administrative review for all
shipments of the subject merchandise from the PRC entered, or withdrawn
from warehouse, for consumption on or after the publication date, as
provided by section 751(a)(2)(C) of the Act: (1) For RZBC and Yixing
Union, the cash deposit rate will be the margins listed above; (2) for
previously investigated or reviewed PRC and non-PRC exporters not
listed above that have separate rates, the cash deposit rate will
continue to be the exporter-specific rate published for the most recent
period; (3) for all PRC exporters of subject merchandise which have not
been found to be entitled to a separate rate, the cash deposit rate
will be the PRC-wide rate of 156.87 percent; and (4) for all non-PRC
exporters of subject merchandise which have not received their own
rate, the cash deposit rate will be the rate applicable to the PRC
exporters that supplied that non-PRC exporter. These deposit
requirements, when imposed, shall remain in effect until further
notice.
Notification to Importers
This notice also serves as a final reminder to importers of their
responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of the antidumping duties occurred and the subsequent
assessment of double antidumping duties.
Administrative Protective Order
This notice also serves as a reminder to parties subject to
administrative protective order (``APO'') of their responsibility
concerning the return or destruction of proprietary information
disclosed under the APO in accordance with 19 CFR 351.305(a)(3), which
continues to govern business proprietary information in this segment of
the proceeding. Timely written notification of the return/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.
Disclosure
We intend to disclose the calculations performed within five days
of the date of publication of this notice to parties in this proceeding
in accordance with 19 CFR 351.224(b).
We are issuing and publishing the final results and notice in
accordance with sections 751(a)(1) and 777(i)(1) of the Act.
Dated: December 7, 2011.
Christian Marsh,
Acting Assistant Secretary for Import Administration.
Appendix
General Issues
Comment 1: Whether the Department Should Exclude Water from the
Margin Calculation
Comment 2: Whether the Department Failed to Inflate the Water Value
Comment 3: Certifications in Petitioners' Previous Submissions
Comment 4: Double Remedy
Comment 5: Zeroing
Comment 6: Whether the Department Should Disallow RZBC's and Yixing
Union's By-product Offsets
Comment 7: Whether to Use an Alternate Source to Calculate the
Surrogate Wage Rate and Financial Ratios
Comment 8: Whether the Department Should Use Multiple Financial
Statements from a Single Company
Comment 9: Whether the Department Should Adjust the Financial Ratio
Calculation to Account for Interest Income and Other Income
Comment 10: Whether the Department Should Adjust the Financial Ratio
Calculation to Account for Foreign Exchange Gains and Losses
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Comment 11: Whether the Department Should Adjust the Financial Ratio
Calculation to Account for Finished Goods
General Surrogate Value Issues
Comment 12: Surrogate Value for Sulfuric Acid
Mandatory Respondent Specific Issues
RZBC
Comment 13: Whether the Department Verified RZBC's Corn Usage Rate
Comment 14: Calcium Carbonate and Sulfuric Acid Usage Rates
Comment 15: Adjustment of Financial Ratios for Corn and Sulfuric
Acid
Yixing Union
Comment 16: Whether the Department Verified Yixing Union's Corn
Usage Rate
Comment 17: Whether the Department Should Deny Yixing Union's
Claimed By-Product Offset for Mycelium or, At a Minimum, Reduce the
Valuation of this Offset
Comment 18: Possible Unreported Inputs in the Chromatographic
Process
[FR Doc. 2011-32097 Filed 12-13-11; 8:45 am]
BILLING CODE 3510-DS-P