[Federal Register Volume 78, Number 211 (Thursday, October 31, 2013)]
[Notices]
[Pages 65269-65272]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-25823]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-993, C-560-827]
Monosodium Glutamate From the People's Republic of China and the
Republic of Indonesia: Initiation of Countervailing Duty Investigations
AGENCY: Enforcement and Compliance, formerly Import Administration,
International Trade Administration, Department of Commerce.
DATES: Effective: October 31, 2013.
FOR FURTHER INFORMATION CONTACT: Jun Jack Zhao (the People's Republic
of China (the PRC)), or Gene Calvert (the Republic of Indonesia
(Indonesia)) at (202) 482-1396, or (202) 482-3586, respectively, AD/CVD
Operations, Office 6, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On September 16, 2013, the Department of Commerce (the Department)
received countervailing duty (CVD) petitions concerning imports of
monosodium glutamate (MSG) from Indonesia and the PRC filed in proper
form on behalf of Ajinomoto North America Inc. (Petitioner).\1\
Petitioner is a domestic producer of MSG. On September 20, 2013, the
Department requested additional information and clarification of
certain areas of the Petitions.\2\ Petitioner filed responses to these
requests on September 24, 2013, and September 26, 2013.\3\
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\1\ See Countervailing Duty Petitions on Monosodium Glutamate
from the PRC and Indonesia, filed on September 16, 2013 (the
Petitions).
\2\ See Petitions for the Imposition of Antidumping Duties and
Countervailing Duties on Imports of Monosodium Glutamate from the
People's Republic of China and the Republic of Indonesia:
Supplemental Questions, September 20, 2013.
\3\ See Supplement to the PRC Petition, September 24, 2013
(September 24 Supplement to the PRC Petition); and Supplement to the
Indonesia Petition, September 24, 2013 (September 24 Supplement to
the Indonesia Petition).
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In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), Petitioner alleges that the Governments of Indonesia
(the GOI) and the PRC (the GOC) are providing countervailable subsidies
(within the meaning of sections 701 and 771(5) of the Act) to imports
of MSG from Indonesia and the PRC, and that such imports are materially
injuring, and threaten to further cause material injury to, the
domestic industry producing MSG in the United States pursuant to
section 701 of the Act. The Department finds that Petitioner filed the
petitions on behalf of the domestic industry because Petitioner is an
interested party as defined in section 771(9)(C) of the Act, and that
Petitioner has demonstrated sufficient industry support with respect to
the initiation of the investigations that Petitioner is requesting.\4\
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\4\ See ``Determination of Industry Support for the Petitions,''
below.
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Periods of Investigations
The periods of these investigations (POI) is January 1, 2012,
through December 31, 2012.
Scope of the Investigations
The product covered by these investigations is MSG from Indonesia
and the PRC.\5\
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\5\ See Appendix I of this notice for a full description of the
scope of these investigations.
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Comments on the Scope of the Investigations
During our review of the petitions, we discussed the scope with
Petitioner to ensure that it is an accurate reflection of the product
for which the domestic industry is seeking relief. Moreover, as
discussed in the preamble to the regulations,\6\ we are setting aside a
period for interested parties to raise issues regarding product
coverage. The Department encourages all interested parties to submit
such comments by November 12, 2013, 5:00 p.m. Eastern Time, which is 20
calendar days from the signature date of this notice. All comments and
submissions to the Department must be filed electronically using
Enforcement and Compliance's electronic service system (IA ACCESS).\7\
An electronically filed document must be received successfully in its
entirety by the Department's electronic records system, IA ACCESS, by
the time and date noted above. Documents excepted from the electronic
submission requirements must be filed manually (i.e., in paper form)
with Enforcement and Compliance's APO/Dockets Unit, Room 1870, U.S.
Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230, and stamped with the date and time of receipt by
the deadline noted above. All comments must be filed on the records of
both the Indonesia and PRC CVD investigations, as well as the
concurrent Indonesia and PRC antidumping duty (AD) investigations.
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\6\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\7\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011) for details of the
Department's electronic filing requirements, which went into effect
on August 5, 2011. Information on help using IA ACCESS can be found
at https://iaaccess.trade.gov/help.aspx and a handbook can be found
at https://iaaccess.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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The period for scope comments is intended to provide the Department
with ample opportunity to consider all comments and to consult with
parties prior to the issuance of the preliminary determinations.
Filing Requirements
All submissions to the Department must be filed electronically
using IA ACCESS. An electronically filed
[[Page 65270]]
document must be received successfully in its entirety by the
applicable deadline. Documents excepted from the electronic submission
requirements must be filed manually (i.e., in paper form) with
Enforcement and Compliance's APO/Dockets Unit, Room 1870, U.S.
Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230, and stamped with the date and time of receipt by
the deadline.
Tolling of Deadlines
As explained in the memorandum from the Assistant Secretary for
Enforcement and Compliance, the Department has exercised its discretion
to toll deadlines for the duration of the closure of the Federal
Government from October 1, through October 16, 2013.\8\ Therefore, all
deadlines in these investigations have been tolled by 16 days. The
revised deadline for the initiation of these investigations is October
23, 2013.
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\8\ See Memorandum for the Record from Paul Piquado, Assistant
Secretary for Enforcement and Compliance, ``Deadlines Affected by
the Shutdown of the Federal Government,'' (October 18, 2013).
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Consultations
Pursuant to section 702(b)(4)(A)(ii) of the Act, the Department
invited representatives from the GOC and the GOI for consultations with
respect to the Petitions.\9\ Consultations were held with the GOC on
September 27, 2013. The Department and the GOI were unable to schedule
consultations regarding the Indonesia petition.\10\
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\9\ See Letter of Invitation Regarding the Countervailing Duty
Petition on Monosodium Glutamate from the People's Republic of China
(September 18, 2013); see also Letter of Invitation Regarding the
Countervailing Duty Petition on Monosodium Glutamate from the
Republic of Indonesia (September 18, 2013).
\10\ See Ex-Parte Memoranda for the File from Mark Hoadley,
``Consultations with Officials from the Government of the People's
Republic of China regarding the Countervailing Duty Petition
concerning Monosodium Glutamate,'' (October 21, 2013); see also
Memorandum to the File from Gene Calvert, ``Consultations with the
Government of Indonesia,'' (October 23, 2013).
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Determination of Industry Support for the Petitions
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) Poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A); or (ii) determine industry support using a
statistically valid sampling method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both the Department and
the ITC must apply the same statutory definition regarding the domestic
like product (see section 771(10) of the Act), they do so for different
purposes and pursuant to a separate and distinct authority. In
addition, the Department's determination is subject to limitations of
time and information. Although this may result in different definitions
of the like product, such differences do not render the decision of
either agency contrary to law.\11\
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\11\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
Petitions).
With regard to the domestic like product, Petitioner does not offer
a definition of the domestic like product distinct from the scope of
the investigations. Based on our analysis of the information submitted
on the record, we have determined that MSG constitutes a single
domestic like product and we have analyzed industry support in terms of
that domestic like product.\12\
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\12\ For a discussion of the domestic like product analysis in
this case, see Countervailing Duty Investigation Initiation
Checklist: Monosodium Glutamate from Indonesia (Indonesia CVD
Checklist) at Attachment II, Analysis of Industry Support for the
Petitions Covering Monosodium Glutamate from Indonesia and the
People's Republic of China (Attachment II); and Countervailing Duty
Investigation Initiation Checklist: Monosodium Glutamate from the
People's Republic of China (PRC CVD Checklist), at Attachment II.
These checklists are dated concurrently with this notice and on file
electronically via IA ACCESS. Access to documents filed via IA
ACCESS is also available in the Central Records Unit, Room 7046 of
the main Department of Commerce building.
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In determining whether Petitioner has standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petitions with reference to the domestic like product
as defined in the ``Scope of the Investigations,'' in Appendix I of
this notice. To establish industry support, Petitioner provided its own
production of the domestic like product in 2012.\13\ Petitioner states
that there are no other known producers of MSG in the United States;
therefore, the Petitions are supported by 100 percent of the U.S.
industry.\14\
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\13\ See Volume I of the Petitions, at Exhibit I-1.B.
\14\ Id., at 3 and Exhibits I-1.A and I-1.B.
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Our review of the data provided in the Petitions and other
information readily available to the Department indicates that
Petitioner has established industry support.\15\ First, the Petitions
established support from domestic producers (or workers) accounting for
more than 50 percent of the total production of the domestic like
product and, as such, the Department is not required to take further
action in order to evaluate industry support (e.g., polling).\16\
Second, the domestic producers (or workers) have met the statutory
criteria for industry support under section 702(c)(4)(A)(i) of the Act
because the domestic producers (or workers) who support the Petitions
account for at least 25 percent of the total production of the domestic
like product.\17\ Finally, the domestic producers (or workers) have met
the statutory criteria for industry support under section
702(c)(4)(A)(ii) of the Act because the domestic producers (or workers)
who support the Petitions account for more than 50 percent of the
production of the domestic like product produced by that portion of the
industry
[[Page 65271]]
expressing support for, or opposition to, the Petitions.\18\
Accordingly, the Department determines that the Petitions were filed on
behalf of the domestic industry within the meaning of section 702(b)(1)
of the Act.
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\15\ See Indonesia CVD Checklist and PRC CVD Checklist, at
Attachment II.
\16\ See section 702(c)(4)(D) of the Act; see also Indonesia CVD
Checklist and PRC CVD Checklist, at Attachment II.
\17\ See Indonesia CVD Checklist and PRC CVD Checklist, at
Attachment II.
\18\ Id.
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The Department finds that Petitioner filed the Petitions on behalf
of the domestic industry because it is an interested party as defined
in section 771(9)(C) of the Act and it has demonstrated sufficient
industry support with respect to the CVD investigations that it is
requesting the Department initiate.\19\
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\19\ Id.
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Injury Test
Because Indonesia and China are ``Subsidies Agreement Countries''
within the meaning of section 701(b) of the Act, section 701(a)(2) of
the Act applies to these investigations. Accordingly, the ITC must
determine whether imports of the subject merchandise from Indonesia and
the PRC materially injure, or threaten material injury to, a U.S.
industry.
Allegations and Evidence of Material Injury and Causation
Petitioner alleges that imports of the subject merchandise are
benefitting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. Petitioner alleges that subject
imports exceed the negligibility threshold provided for under section
771(24)(A) of the Act. Petitioner also demonstrates that the volume of
subject imports from Indonesia is 15 percent, which exceeds the
negligibility threshold provided for under section 771(24)(B) of the
Act, which states that in countervailing duty proceedings, imports of
subject merchandise from developing countries must exceed the
negligibility threshold of four percent.\20\
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\20\ See Volume I of the Petitions, at 22.
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Petitioner contends that the industry's injured condition is
illustrated by reduced market share; underselling and price depression
or suppression; lost sales and revenues; and decline in financial
performance.\21\ We have assessed the allegations and supporting
evidence regarding material injury, threat of material injury, and
causation, and we have determined that these allegations are properly
supported by adequate evidence and meet the statutory requirements for
initiation.\22\
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\21\ Id., at 13-40 and Exhibits I-1, I-8, I-10 and I-12 through
I-32; see also AD/CVD Supplement, at 2 and Exhibit SQR-1.
\22\ See China CVD Initiation Checklist and Indonesia CVD
Initiation Checklist, at Attachment III, Analysis of Allegations and
Evidence of Material Injury and Causation for the Petitions Covering
Monosodium Glutamate from Indonesia and the People's Republic of
China.
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Initiation of CVD Investigations
Section 702(b)(1) of the Act requires the Department to initiate a
CVD investigation whenever an interested party files a CVD petition on
behalf of an industry that: (1) Alleges the elements necessary for an
imposition of a duty under section 701(a) of the Act; and (2) is
accompanied by information reasonably available to the petitioner
supporting the allegations. In the Petitions, Petitioner alleges that
producers of MSG in Indonesia and the PRC benefitted from
countervailable subsidies bestowed by their respective governments. The
Department has examined the Petitions, and finds that they comply with
the requirements of section 702(b)(1) of the Act. Therefore, in
accordance with section 702(b)(1) of the Act, we are initiating CVD
investigations to determine whether manufacturers, producers, or
exporters of MSG from Indonesia and the PRC receive countervailable
subsidies from their respective governments.
Indonesia
Based on our examination of the Petitions, we find that there is
sufficient information to initiate a CVD investigation of 10 alleged
programs. For a full discussion of the basis for our decision on
whether to initiate an investigation on each program, see the Indonesia
CVD Initiation Checklist.
The PRC
Based on our examination of the Petitions, we find that there is
sufficient information to initiate a CVD investigation of 49 alleged
programs. For a full discussion of the basis for our decision on
whether to initiate an investigation on each program, see the PRC CVD
Initiation Checklist.
Respondent Selection
For these investigations, the Department, if necessary, intends to
select respondents based on U.S. Customs and Border Protection (CBP)
data for U.S. imports during the POI (i.e., January 1, 2012, through
December 31, 2012) under the following Harmonized Tariff Schedule of
the United States numbers: 2922.42.10.00, 2922.42.50.00, 2103.90.72.00,
2103.90.74.00, 2103.90.78.00, 2103.90.80.00, and 2103.90.90.91. We
intend to release the CBP data under Administrative Protective Order
(APO) to all parties with access to information protected by APO within
five days of the announcement of the initiation of these
investigations. Interested parties may submit comments regarding the
CBP data and respondent selection within five calendar days of release
of this data. Comments on respondent selection must be filed
electronically using IA ACCESS in accordance with the filing
requirements, referenced above. We intend to make our decision
regarding respondent selection within 20 days of the publication of
this notice.
Distribution of Copies of the Petitions
In accordance with section 702(b)(4)(A)(i) of the Act, and 19 CFR
351.202(f), copies of the public version of the Petitions have been
provided to the GOI and GOC via IA ACCESS. Because of the particularly
large number of producers/exporters identified in the Petitions, the
Department considers the service of the public versions of the
Petitions to the foreign producers/exporters to be satisfied by the
provision of the public versions of the Petitions to the GOI and GOC,
consistent with 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our initiation, as required by section
702(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petitions were filed, whether there is a reasonable
indication that imports of MSG from Indonesia and the PRC are
materially injuring, or threatening material injury to, a U.S.
industry.\23\ A negative ITC determination for any country will result
in the investigation being terminated with respect to that country;
otherwise, these investigations will proceed according to statutory and
regulatory time limits.
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\23\ See section 703(a) of the Act.
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Submission of Factual Information
On April 10, 2013, the Department published Definition of Factual
Information and Time Limits for Submission of Factual Information:
Final Rule, 78 FR 21246 (April 10, 2013), which modified two
regulations related to AD and CVD proceedings: (1) The definition of
factual information (19 CFR 351.102(b)(21)), and (2) the time limits
for the submission of factual information (19 CFR 351.301). The final
rule identifies five categories of factual information in 19 CFR
351.102(b)(21),
[[Page 65272]]
which are summarized as follows: (i) Evidence submitted in response to
questionnaires; (ii) evidence submitted in support of allegations;
(iii) publicly available information to value factors under 19 CFR
351.408(c) or to measure the adequacy of remuneration under 19 CFR
351.511(a)(2); (iv) evidence placed on the record by the Department;
and (v) evidence other than factual information described in (i)-(iv).
The final rule requires any party, when submitting factual information,
to specify under which subsection of 19 CFR 351.102(b)(21) the
information is being submitted and, if the information is submitted to
rebut, clarify, or correct factual information already on the record,
to provide an explanation identifying the information already on the
record that the factual information seeks to rebut, clarify, or
correct. The final rule also modified 19 CFR 351.301 so that, rather
than providing general time limits, there are specific time limits
based on the type of factual information being submitted. These
modifications are effective for all proceeding segments initiated on or
after May 10, 2013, and thus are applicable to these investigations.
Please review the final rule, available at http://enforcement.trade.gov/frn/2013/1304frn/2013-08227.txt, prior to
submitting factual information for these investigations.
Extension of Time Limits
On September 20, 2013, the Department published Extension of Time
Limits, Final Rule, 78 FR 57790 (September 20, 2013), which modified
one regulation related to AD and CVD proceedings regarding the
extension of time limits for submissions in such proceedings (19 CFR
351.302(c)). These modifications are effective for all proceeding
segments initiated on or after October 21, 2013, and thus are
applicable to this investigation. Please review the final rule,
available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm prior to requesting an extension.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\24\
Parties are hereby reminded that revised certification requirements are
in effect for company/government officials as well as their
representatives in all AD or CVD investigations or proceedings
initiated on or after August 16, 2013, including these
investigations.\25\ The formats for the revised certifications are
provided at the end of the Final Rule. The Department intends to reject
factual submissions if the submitting party does not comply with the
revised certification requirements.
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\24\ See section 782(b) of the Act.
\25\ See Certifications of Factual Information To Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule).
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. On January 22, 2008, the
Department published Antidumping and Countervailing Duty Proceedings:
Documents Submission Procedures; APO Procedures, 73 FR 3634 (January
22, 2008). Parties wishing to participate in these investigations
should ensure that they meet the requirements of these procedures
(e.g., the filing of letters of appearance as discussed at 19 CFR
351.103(d)).
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: October 23, 2013.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Attachment I
Scope of the Investigations
The scope of these investigations covers monosodium glutamate
(``MSG''), whether or not blended or in solution with other
products. Specifically, MSG that has been blended or is in solution
with other product(s) is included in this scope when the resulting
mix contains 15% or more of MSG by dry weight. Products with which
MSG may be blended include, but are not limited to, salts, sugars,
starches, maltodextrins, and various seasonings. Further, MSG is
included in these investigations regardless of physical form
(including, but not limited to, substrates, solutions, dry powders
of any particle size, or unfinished forms such as MSG slurry), end-
use application, or packaging.
MSG has a molecular formula of
C5H8NO4Na, a Chemical Abstract
Service (``CAS'') registry number of 6106-04-3, and a Unique
Ingredient Identifier (``UNII'') number of W81N5U6R6U.
Merchandise covered by the scope of these investigations is
currently classified in the Harmonized Tariff Schedule (``HTS'') of
the United States at subheading 2922.42.10.00. Merchandise subject
to the investigations may also enter under HTS subheadings
2922.42.50.00, 2103.90.72.00, 2103.90.74.00, 2103.90.78.00,
2103.90.80.00, and 2103.90.90.91. The tariff classifications, CAS
registry number, and UNII number are provided for convenience and
customs purposes; however, the written description of the scope is
dispositive.
[FR Doc. 2013-25823 Filed 10-30-13; 8:45 am]
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