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

<NOTICE> DEPARTMENT OF COMMERCE <SUBAGY>International Trade Administration</SUBAGY> <DEPDOC>[A-570-172]</DEPDOC> <SUBJECT>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</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Enforcement and Compliance, International Trade Administration, Department of Commerce. <SUM> <HD SOURCE="HED">SUMMARY:</HD> 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. </SUM> <DATES> <HD SOURCE="HED">DATES:</HD> Applicable January 16, 2025. </DATES> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> 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. </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Background</HD> 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. <SU>1</SU> <FTREF/> On July 22, 2024, Commerce tolled certain deadlines in this investigation by seven days. <SU>2</SU> <FTREF/> On October 22, 2024, Commerce postponed the preliminary determination of this investigation. <SU>3</SU> <FTREF/> The deadline for the preliminary determination is now January 8, 2025. <FTNT> <SU>1</SU>   <E T="03">See Vanillin from the People's Republic of China: Initiation of Less-Than-Fair Value Investigation,</E> 89 FR 54424 (July 1, 2024) ( <E T="03">Initiation Notice</E> ). </FTNT> <FTNT> <SU>2</SU>   <E T="03">See</E> Memorandum, “Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings,” dated July 22, 2024. </FTNT> <FTNT> <SU>3</SU>   <E T="03">See Vanillin from the People's Republic of China: Postponement of Preliminary Determination in the Less-Than-Fair Value Investigation,</E> 89 FR 84330 (October 22, 2024). </FTNT> For a complete description of the events that followed the initiation of this investigation, <E T="03">see</E> the Preliminary Decision Memorandum. <SU>4</SU> <FTREF/> 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 <E T="03">https://access.trade.gov.</E> In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at <E T="03">https://access.trade.gov/public/FRNoticesListLayout.aspx.</E> <FTNT> <SU>4</SU>   <E T="03">See</E> 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). </FTNT> <HD SOURCE="HD1">Scope of the Investigation</HD> The product covered by this investigation is vanillin from China. For a complete description of the scope of this investigation, <E T="03">see</E> Appendix I. <HD SOURCE="HD1">Scope Comments</HD> In accordance with the <E T="03">Preamble</E> to Commerce's regulations, <SU>5</SU> <FTREF/> the <E T="03">Initiation Notice</E> set aside a period of time for parties to raise issues regarding product coverage, <E T="03">i.e.,</E> scope. <SU>6</SU> <FTREF/> No interested party commented on the scope of the investigation as it appeared in the <E T="03">Initiation Notice.</E> As a result, Commerce is not preliminarily modifying the scope language as it appeared in the <E T="03">Initiation Notice. See</E> the scope in Appendix I to this notice. <FTNT> <SU>5</SU>   <E T="03">See Antidumping Duties, Countervailing Duties, Final Rule,</E> 62 FR 27296, 27323 (May 19, 1997). </FTNT> <FTNT> <SU>6</SU>   <E T="03">See Initiation Notice,</E> 89 FR at 54424. </FTNT> <HD SOURCE="HD2">Methodology</HD> 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, <E T="03">see</E> the Preliminary Decision Memorandum. <HD SOURCE="HD1">Combination Rates</HD> In the <E T="03">Initiation Notice,</E> <SU>7</SU> <FTREF/> 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. <SU>8</SU> <FTREF/> 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. <FTNT> <SU>7</SU>   <E T="03">Id.</E> </FTNT> <FTNT> <SU>8</SU>   <E T="03">See</E> 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 <E T="03">enforcement.trade.gov/policy/bull05-1.pdf.</E> </FTNT> <HD SOURCE="HD1">Separate Rates</HD> We preliminarily granted a separate rate to certain separate rate respondents that we did not select for individual examination. <SU>9</SU> <FTREF/> 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 <E T="03">de minimis</E> dumping margins, and any dumping margins based entirely under section 776 of the Act. <FTNT> <SU>9</SU>   <E T="03">See</E> the Preliminary Decision memorandum for additional details. </FTNT> Commerce calculated an individual estimated weighted-average dumping margin for Jiangxi Brother Pharmaceutical Co., Ltd. (Jiangxi Brother) that is not zero, <E T="03">de minimis,</E> 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. <SU>10</SU> <FTREF/> <E T="03">See</E> the table below in the “Preliminary Determination” section of this notice. <FTNT> <SU>10</SU>   <E T="03">See</E> Memorandum, “Calculation of the Dumping Margin for Respondents Not Selected for Individual Examination,” dated January 8, 2025. </FTNT> <HD SOURCE="HD1">Preliminary Determination</HD> Commerce preliminarily determines that the following estimated weighted-average dumping margins exist: <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s50,r50,16,16"> <TTITLE> </TTITLE> <CHED H="1">Exporter</CHED> <CHED H="1">Producer</CHED> <CHED H="1">Weighted-average dumping margin (percent)</CHED> <CHED H="1"> Cash deposit rate (adjusted for subsidy offsets) <ENT I="01">Jiangxi Brother Pharmaceutical Co., Ltd</ENT> <ENT>Jiangxi Brother Pharmaceutical Co., Ltd</ENT> <ENT>186.20</ENT> <ENT>186.15</ENT> </ROW> <ROW> <ENT I="01">Chongqing Thrive Fine Chemicals Co., Ltd</ENT> <ENT>Chongqing Thrive Fine Chemicals Co., Ltd</ENT> <ENT>186.20</ENT> <ENT>186.15</ENT> </ROW> <ROW> <ENT I="01">HongKong Wictive Merchants Co., Ltd</ENT> <ENT>Kunshan Asia Aroma Corp., Ltd</ENT> <ENT>186.20</ENT> <ENT>186.15</ENT> </ROW> <ROW> <ENT I="01">Kunshan Asia Aroma Corp., Ltd</ENT> <ENT>Kunshan Asia Aroma Corp., Ltd</ENT> <ENT>186.20</ENT> <ENT>186.15</ENT> </ROW> <ROW> <ENT I="01">Mianyang Sunshine Bio-Tech Co., Ltd</ENT> <ENT>Mianyang Sunshine Bio-Tech Co., Ltd</ENT> <ENT>186.20</ENT> <ENT>186.15</ENT> </ROW> <ROW> <ENT I="01">Shanghai Fuxin Fine Chemical Co., Ltd</ENT> <ENT>Jiaxing Zhonghua Chemical Co., Ltd</ENT> <ENT>186.20</ENT> <ENT>186.15</ENT> </ROW> <ROW> <ENT I="01">Shenzhen Siyomicro Bio-Tech Co., Ltd</ENT> <ENT>Shenzhen Siyomicro Bio-Tech Co., Ltd</ENT> <ENT>186.20</ENT> <ENT>186.15</ENT> </ROW> <ROW> <ENT I="01">Wuxi Lotus Essence Co., Ltd</ENT> <ENT>Jiaxing Zhonghua Chemical Co., Ltd</ENT> <ENT>186.20</ENT> <ENT>186.15</ENT> </ROW> <ROW> <ENT I="01">Xiamen Bestally Biotechnology Co., Ltd</ENT> <ENT>Xiamen Oamic Biotech Co., Ltd</ENT> <ENT>186.20</ENT> <ENT>186.15</ENT> </ROW> <ROW> <ENT I="01">China-Wide Entity</ENT> <ENT/> <ENT>* 379.87</ENT> <ENT>379.82</ENT> </ROW> < ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 22k characters. 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