[Federal Register Volume 78, Number 139 (Friday, July 19, 2013)]
[Notices]
[Pages 43143-43145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-17380]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-985]


Xanthan Gum From the People's Republic of China: Amended Final 
Determination of Sales at Less Than Fair Value and Antidumping Duty 
Order

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (the ``Department'') and the International Trade Commission 
(``ITC''), the Department is issuing an antidumping duty order on 
xanthan gum from the People's Republic of China (``PRC''). In addition, 
the Department is amending its final determination to correct a 
ministerial error.

DATES: Effective Date: July 19, 2013.

FOR FURTHER INFORMATION CONTACT: Brandon Farlander or Erin Kearney, 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-
0182 or (202) 482-0167, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On June 4, 2013, the Department published the final determination 
of sales at less than fair value in the antidumping duty investigation 
of xanthan gum from the PRC.\1\ On July 12, 2013, the ITC notified the 
Department of its final determination pursuant to section 
735(b)(1)(A)(ii) of the Tariff Act of 1930, as amended (``the Act''), 
that an industry in the United States is threatened with material 
injury by reason of imports of xanthan gum from the PRC.\2\
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    \1\ See Xanthan Gum From the People's Republic of China: Final 
Determination of Sales at Less Than Fair Value, 78 FR 33351 (June 4, 
2013) (``Final Determination'').
    \2\ See Xanthan Gum from Austria and China, USITC Publication 
4411, Investigation Nos. 731-TA-1202-1203 (Final) (July 2013).
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Scope of the Order

    The scope of this 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.
    Xanthan gum that has been blended with other product(s) is included 
in this scope when the resulting mix contains 15 percent or more of 
xanthan gum by dry weight. Other products with which xanthan gum may be 
blended include, but are not limited to, sugars, minerals, and salts.
    Xanthan gum is a polysaccharide produced by aerobic fermentation of 
Xanthomonas campestris. The chemical structure of the repeating 
pentasaccharide monomer unit consists of a backbone of two P-1,4-D-
Glucose monosaccharide units, the second with a trisaccharide side 
chain consisting of P-D-Mannose-(1,4)- P-DGlucuronic acid-(1,2)-a-D-
Mannose monosaccharide units. The terminal mannose may be pyruvylated 
and the internal mannose unit may be acetylated.
    Merchandise covered by the scope of this order is classified in the 
Harmonized Tariff Schedule (``HTS'') of the United States at subheading 
3913.90.20. This tariff classification is provided for convenience and 
customs purposes; however, the written description of the scope is 
dispositive.

Amendment to the Final Determination

    On June 4, 2013, the Department published its affirmative final 
determination in this proceeding.\3\ In accordance with 19 CFR 
351.224(b), the Department disclosed to interested parties the details 
of its calculations for the final determination on May 30, 2013. On 
June 4, 2013, CP Kelco U.S. (``Petitioner''), petitioner in this 
investigation, and Neimenggu Fufeng Biotechnologies Co., Ltd. (aka 
Inner

[[Page 43144]]

Mongolia Fufeng Biotechnologies Co., Ltd.) (``Fufeng'') and Deosen 
Biochemical (``Deosen''), respondents in this investigation, timely 
submitted ministerial error allegations and requested, pursuant to 19 
CFR 351.224, that the Department correct the alleged ministerial 
errors. On June 10, 2013, Petitioner submitted rebuttal comments to 
Deosen's ministerial error allegations, and Fufeng submitted rebuttal 
comments to Petitioner's ministerial error allegations. On June 11, 
2013, the Department rejected Fufeng's rebuttal comments and allowed 
Fufeng to re-submit its rebuttal comments, which Fufeng did on June 12, 
2013.
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    \3\ See Final Determination.
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    After analyzing all interested party comments and rebuttals, we 
have determined that, in accordance with section 735(e) of the Act and 
19 CFR 351.224(e), a ministerial error was made with respect to the 
treatment of the coal ash by-product in Fufeng's margin calculation.\4\
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    \4\ For a detailed discussion of the alleged ministerial errors, 
as well as the Department's analysis, see Memorandum to Paul 
Piquado, Assistant Secretary for Import Administration, from 
Christian Marsh, Deputy Assistant Secretary for Antidumping and 
Countervailing Duty Operations, regarding, ``Final Determination of 
Antidumping Duty Investigation of Xanthan Gum from the People's 
Republic of China: Allegation of Ministerial Errors,'' dated June 
28, 2013.
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    In the Final Determination, we determined that a number of 
companies, in addition to the mandatory respondents, qualified for a 
separate rate.\5\ Since the weighted-average dumping margin for the 
separate rate respondents is based on the average of the weighted-
average dumping margins for the mandatory respondents, and the 
weighted-average dumping margin for Fufeng changed as a result of the 
aforementioned ministerial error, we have revised the calculation of 
the dumping margin for the separate rate respondents in the amended 
final determination. The amended dumping margins are provided, below.
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    \5\ See Final Determination, 78 FR at 33353.
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Antidumping Duty Order

    In accordance with section 735(d) of the Act, the ITC has notified 
the Department of its final determination in this investigation, in 
which it found that an industry in the United States is threatened with 
material injury within the meaning of section 735(b)(1)(A)(ii) of the 
Act. Therefore, in accordance with section 735(c)(2) of the Act, we are 
publishing this antidumping duty order. In accordance with section 
736(a)(1) of the Act, the Department will direct U.S. Customs and 
Border Protection (``CBP'') to assess, upon further instruction by the 
Department, antidumping duties equal to the amount by which the normal 
value of the merchandise exceeds the export price (or constructed 
export price) of the merchandise, for all relevant entries of xanthan 
gum from the PRC.
    Pursuant to section 736(b)(2) of the Act, duties shall be assessed 
on subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of the ITC's notice of 
final determination if that determination is based on the threat of 
material injury, other than threat of material injury described in 
section 736(b)(1) of the Act.\6\ In addition, section 736(b)(2) of the 
Act requires CBP to release any bond or other security, and refund any 
cash deposit made of estimated antidumping duties posted since the 
Department's preliminary antidumping duty determination.\7\
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    \6\ Section 736(b)(1) of the Act states that ``{i{time} f the 
{ITC{time} , in its final determination under section 735(b), finds 
material injury or threat of material injury which, but for the 
suspension of liquidation under section 733(d)(2) would have led to 
a finding of material injury, then entries of the subject 
merchandise, the liquidation of which has been suspended under 
section 733(d)(2), shall be subject to the imposition of antidumping 
duties under section 731.''
    \7\ See Xanthan Gum from the People's Republic of China: 
Preliminary Determination of Sales at Less Than Fair Value and 
Postponement of Final Determination, 77 FR 2252 (January 10, 2013) 
(``Preliminary Determination'').
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Suspension of Liquidation

    Because the ITC's final determination is based on the threat of 
material injury and is not accompanied by a finding that injury would 
have resulted but for the imposition of suspension of liquidation of 
entries since the Department's preliminary determination, section 
736(b)(2) of the Act is applicable. Therefore, the Department will 
instruct CBP to terminate the suspension of liquidation for entries of 
xanthan gum from the PRC entered, or withdrawn from warehouse, for 
consumption prior to the publication of the ITC's final determination 
and refund any cash deposits of estimated antidumping duties made 
between the publication of the Department's preliminary determination 
on January 10, 2013, and the publication of the ITC's final 
determination. Furthermore, we will instruct CBP to continue to suspend 
liquidation on all unliquidated entries of xanthan gum from the PRC 
entered, or withdrawn from warehouse, for consumption on or after the 
date of publication of the ITC's notice of final determination of 
threat of material injury in the Federal Register.
    Effective on the date of publication of the ITC's notice of final 
determination in the Federal Register, CBP will require, pursuant to 
section 736(a)(3) of the Act, at the same time as importers would 
normally deposit estimated duties on this subject merchandise, a cash 
deposit equal to the weighted-average dumping margins listed below.\8\ 
The rate for the PRC-wide entity applies to all exporter and producer 
combinations not specifically listed.
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    \8\ See section 736(a)(3) of the Act.
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Amended Final Determination of Antidumping Investigation

    The weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                       Weighted-average
            Exporter                   Producer         dumping margin
                                                           (percent)
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Neimenggu Fufeng Biotechnologies  Neimenggu Fufeng                 12.90
 Co., Ltd (aka Inner Mongolia      Biotechnologies
 Fufeng Biotechnologies Co.,       Co., Ltd. (aka
 Ltd.)/Shandong Fufeng             Inner Mongolia
 Fermentation Co., Ltd.            Fufeng
                                   Biotechnologies
                                   Co., Ltd.)/
                                   Shandong Fufeng
                                   Fermentation Co.,
                                   Ltd.
Deosen Biochemical Ltd..........  Deosen Biochemical              128.32
                                   Ltd./Deosen
                                   Biochemical
                                   (Ordos) Ltd.
A.H.A. International Co., Ltd...  Shandong Fufeng                  70.61
                                   Fermentation Co.,
                                   Ltd.
A.H.A. International Co., Ltd...  Deosen Biochemical               70.61
                                   Ltd.
CP Kelco (Shandong) Biological    CP Kelco                         70.61
 Company Limited.                  (Shandong)
                                   Biological
                                   Company Limited.
Hebei Xinhe Biochemical Co. Ltd.  Hebei Xinhe                      70.61
                                   Biochemical Co.
                                   Ltd.
Shanghai Smart Chemicals Co. Ltd  Deosen Biochemical               70.61
                                   Ltd.
PRC-Wide Entity *...............  ..................              154.07
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* The PRC-wide entity includes Shandong Yi Lian Cosmetics Co., Ltd.,
  Shanghai Echem Fine Chemicals Co., Ltd., Sinotrans Xiamen Logistics
  Co., Ltd., and Zibo Cargill HuangHelong Bioengineering Co., Ltd


[[Page 43145]]

    This notice constitutes the antidumping duty order with respect to 
xanthan gum from the PRC pursuant to section 736(a) of the Act. 
Interested parties may contact the Department's Central Records Unit, 
Room 7043 of the main Commerce building, for copies of an updated list 
of antidumping duty orders currently in effect.
    This order and amended final determination are published in 
accordance with sections 735(e), 736(a) and 777(i) of the Act, and 19 
CFR 351.211 and 351.224(e).

     Dated: July 15, 2013.
Paul Piquado,
Assistant Secretary for Import Administration.
[FR Doc. 2013-17380 Filed 7-18-13; 8:45 am]
BILLING CODE 3510-DS-P