89 FR 208 pgs. 85502-85505 - Frozen Warmwater Shrimp From India: Final Affirmative Countervailing Duty Determination
Type: NOTICEVolume: 89Number: 208Pages: 85502 - 85505
Pages: 85502, 85503, 85504, 85505Docket number: [C-533-921]
FR document: [FR Doc. 2024-24952 Filed 10-25-24; 8:45 am]
Agency: Commerce Department
Sub Agency: International Trade Administration
Official PDF Version: PDF Version
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-921]
Frozen Warmwater Shrimp From India: Final Affirmative Countervailing Duty Determination
AGENCY:
Enforcement and Compliance, International Trade Administration, Department of Commerce.
SUMMARY:
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of frozen warmwater shrimp (shrimp) from India. The period of investigation (POI) is April 1, 2022, through March 31, 2023.
DATES:
Applicable October 28, 2024.
FOR FURTHER INFORMATION CONTACT:
[top] Benjamin Nathan, AD/CVD Operations, Office II, Enforcement and Compliance,
SUPPLEMENTARY INFORMATION:
Background
On April 1, 2024, Commerce published the Preliminary Determination in the Federal Register . 1 In the Preliminary Determination, and in accordance with section 705(a)(1) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(b)(4), Commerce aligned the final countervailing duty (CVD) determination with the final antidumping duty determination. 2 Commerce invited parties to comment on the Preliminary Determination. 3 On July 19, 2024, Commerce released its Post-Preliminary Decision. 4 On July 22, 2024, Commerce tolled certain deadlines in this administrative proceeding by seven days. 5 The deadline for the final determination is now October 21, 2024.
Footnotes:
1 ? See Frozen Warmwater Shrimp from India: Preliminary Affirmative Determination of Countervailable Subsidies, and Alignment of Final Determination With the Final Antidumping Duty Determination, 89 FR 22386 (April 1, 2024) ( Preliminary Determination ), and accompanying Preliminary Decision Memorandum (PDM).
2 ? See Preliminary Determination, 89 FR at 22386.
3 ? Id.
4 ? See Memorandum, "Post Preliminary Analysis," dated July 19, 2024.
5 ? See Memorandum, "Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings," dated July 22, 2024.
For a complete description of the events that followed the Preliminary Determination, see the Issues and Decision Memorandum. 6 The Issues and 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 Issues and Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
Footnotes:
6 ? See Memorandum, "Issues and Decision Memorandum for the Final Affirmative Determination of the Countervailing Duty Investigation of Frozen Warmwater Shrimp from India," dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).
Scope of the Investigation
The products covered by this investigation are shrimp from India. For a complete description of the scope of the investigation, see appendix I.
Scope Comments
We received no comments from interested parties on the scope of the investigation as it appeared in the Preliminary Determination. Therefore, we made no changes to the scope of the investigation.
Verification
As provided in section 782(i) of the Act, in July and August 2024, Commerce verified all information reported by Devi Sea Foods Limited (Devi), Sandhya Aqua Exports Private Limited (Sandhya), and the Government of India (GOI). We used standard verification procedures, including an examination of relevant account records and original source documents provided by the respondents. 7
Footnotes:
7 ? See Memoranda, "Verification of the Questionnaire Responses of the Government of India," dated August 29, 2024; "Verification of the Questionnaire Responses of Devi Seafoods Private Limited," dated August 29, 2024; and "Verification of the Questionnaire Responses of Sandhya Aqua Exports Private Limited.," dated August 29, 2024.
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in the case and rebuttal briefs by parties in this investigation, are discussed in the Issues and Decision Memorandum. For a list of the issues raised by parties, and to which we responded in the Issues and Decision Memorandum, see Appendix II.
Methodology
Commerce conducted this investigation in accordance with section 701 of the Act. For each of the subsidy programs found to be countervailable, Commerce determines that there is a subsidy, i.e., a financial contribution by an "authority" that gives rise to a benefit to the recipient, and that the subsidy is specific. 8 For a full description of the methodology underlying our final determination, see the Issues and Decision Memorandum.
Footnotes:
8 ? See sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity.
Changes Since the Preliminary Determination
Based on our review and analysis of the information received during verification and comments received from parties, for this final determination, we made certain changes to the countervailable subsidy rate calculations for Devi, Sandhya, and for all other producers/exporters. For a discussion of these changes, see the Issues and Decision Memorandum.
All-Others Rate
In accordance with section 705(c)(1)(B)(i) of the Act, we calculated an individual estimated countervailable subsidy rate for the two mandatory respondents, Devi and Sandhya. Section 705(c)(5)(A)(i) of the Act states that, for companies not individually investigated, Commerce will determine an all-others rate equal to the weighted-average countervailable subsidy rates established for exporters and/or producers individually investigated, excluding any zero and de minimis countervailable subsidy rates, and any rates determined entirely under section 776 of the Act.
In this investigation, we continue to calculate individual total net countervailable subsidy rates for Devi and Sandhya that are not zero, de minimis, or based entirely on facts otherwise available. We, therefore, continue to calculate the all-others rate using a weighted average of the individual estimated subsidy rates calculated for the examined respondents (Devi and Sandhya) using each company's publicly-ranged sales value for their exports to the United States of subject merchandise, 9 in accordance with section 705(c)(5)(A)(i) of the Act.
Footnotes:
9 ?With two respondents under examination, Commerce normally calculates: (A) a weighted-average of the estimated subsidy rates calculated for the examined respondents; (B) a simple average of the estimated subsidy rates calculated for the examined respondents; and (C) a weighted-average of the estimated subsidy rates calculated for the examined respondents using each company's publicly-ranged U.S. sale quantities for the merchandise under consideration. Commerce then compares (B) and (C) to (A) and selects the rate closest to (A) as the most appropriate rate for all other producers and exporters. See, e.g., Ball Bearings and Parts Thereof from France, Germany, Italy, Japan, and the United Kingdom: Final Results of Antidumping Administrative Reviews, Final Results of Changed-Circumstances Review, and Revocation of an Order in Part, 75 FR 53661, 53663 (September 1, 2010); see also Forged Steel Fluid End Blocks from Italy: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination with Final Antidumping Duty Determination, 85 FR 31460, 31461 (May 26, 2020), unchanged in Forged Steel Fluid End Blocks from Italy: Final Affirmative Countervailing Duty Determination, 85 80022, 80023 (December 11, 2020).
Final Determination
Commerce determines that the following estimated net countervailable subsidy rates exist for the period April 1, 2022, through March 31, 2023:
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| Company | Subsidy rate (percent ad valorem ) |
|---|---|
| Devi Sea Foods Limited? 10 | 5.87 |
| Sandhya Aqua Exports Private Limited? 11 | 5.63 |
| All Others | 5.77 |
Disclosure
Footnotes:
10 ?Commerce continues to determine that Devi is cross owned with Devi Sea Foods Inc, Devee Horizon LLP, Devee Power Corporation Limited, and Devee Superior Feeds Limited. See Preliminary Determination PDM at 9; see also Memorandum, "Post-Preliminary Analysis," dated July 19, 2024, at 5-6.
11 ?Commerce continues to determine that Sandhya is cross owned with Neeli Sea Foods Private Limited, Vijay Aqua Processors Private Limited, and Neeli Aqua Farms. See Preliminary Determination PDM at 9.
Commerce intends to disclose its calculations performed to interested parties in this final determination within five days of its public announcement or, if there is no public announcement, within five days of the date of the publication of this notice in the Federal Register , in accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S. Customs and Border Protection (CBP) to collect cash deposits and suspend liquidation of entries of subject merchandise as described in the scope of the investigation section entered, or withdrawn from warehouse, for consumption on or after April 1, 2024, the date of publication of the Preliminary Determination in the Federal Register . In accordance with section 703(d) of the Act, we instructed CBP to discontinue the suspension of liquidation of all entries of subject merchandise entered or withdrawn from warehouse, on or after July 30, 2024, but to continue the suspension of liquidation of all entries of subject merchandise on or before July 29, 2024.
If the U.S. International Trade Commission (ITC) issues a final affirmative injury determination, we will issue a countervailing duty order, reinstate the suspension of liquidation under section 706(a) of the Act, and require a cash deposit of estimated countervailing duties for such entries of subject merchandise in the amounts indicated above. Pursuant to section 705(c)(2) of the Act, if the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated, and all estimated duties deposited or securities posted as a result of the suspension of liquidation will be refunded or cancelled.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify the ITC of its final affirmative determination that countervailable subsidies are being provided to producers and exporters of shrimp from India. As Commerce's final determination is affirmative, in accordance with section 705(b) of the Act, the ITC will determine, within 45 days, whether the domestic industry in the United States is materially injured, or threated with material injury, by reason of import of shrimp from India. In addition, we are making available to the ITC all non-privileged and non-proprietary information in our files, provided the ITC confirms that it will not disclose such information, either publicly or under administrative protective order (APO), without the written consent of the Assistant Secretary for Enforcement and Compliance.
If the ITC determines that material injury or threat of material injury does not exist, this proceeding will be terminated and all cash deposits will be refunded. If the ITC determines that such injury does exist, Commerce will issue a countervailing duty order directing CBP to assess, upon further instruction by Commerce, countervailing duties on all imports of the subject merchandise that are entered, or withdrawn, for consumption on or after the effective date of the suspension of liquidation, as discussed above in the "Continuation of Suspension of Liquidation" section.
Administrative Protective Order
This notice will serve as the only reminder to parties subject to the APO of their responsibility concerning the destruction of proprietary information disclosed under APO, in accordance with 19 CFR 351.305(a)(3). 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.
Notification to Interested Parties
This determination is issued and published pursuant to sections 705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: October 21, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The scope of this investigation includes certain frozen warmwater shrimp and prawns whether wild-caught (ocean harvested) or farm-raised (produced by aquaculture), head-on or head-off, shell-on or peeled, tail-on or tail-off, deveined or not deveined, cooked or raw, or otherwise processed in frozen form. "Tails" in this context means the tail fan, which includes the telson and the uropods.
The frozen warmwater shrimp and prawn products included in the scope, regardless of definitions in the Harmonized Tariff Schedule of the United States (HTSUS), are products which are processed from warmwater shrimp and prawns through freezing and which are sold in any count size.
The products described above may be processed from any species of warmwater shrimp and prawns. Warmwater shrimp and prawns are generally classified in, but are not limited to, the Penaeidae family. Some examples of the farmed and wild-caught warmwater species include, but are not limited to, whiteleg shrimp (Penaeus vannemei), banana prawn (Penaeus merguiensis), fleshy prawn (Penaeus chinensis), giant river prawn (Macrobrachium rosenbergii), giant tiger prawn (Penaeus monodon), redspotted shrimp (Penaeus brasiliensis), southern brown shrimp (Penaeus subtilis), southern pink shrimp (Penaeus notialis), southern rough shrimp (Trachypenaeus curvirostris), southern white shrimp (Penaeus schmitti), blue shrimp (Penaeus stylirostris), western white shrimp (Penaeus occidentalis), and Indian white prawn (Penaeus indicus).
Frozen shrimp and prawns that are packed with marinade, spices or sauce are included in the scope. In addition, food preparations, which are not "prepared meals," that contain more than 20 percent by weight of shrimp or prawn are also included in the scope.
[top] Excluded from the scope are: (1) breaded shrimp and prawns (HTSUS subheading 1605.20.10.20); (2) shrimp and prawns generally classified in the Pandalidae family and commonly referred to as coldwater shrimp, in any state of processing; (3) fresh shrimp and prawns whether shell-on or peeled (HTSUS subheadings 0306.36.0020 and 0306.36.0040); (4) shrimp and prawns in prepared meals (HTSUS subheading 1605.20.05.10); (5) dried shrimp and prawns; (6) canned warmwater shrimp and prawns (HTSUS subheading 1605.20.10.40); (7) certain dusted shrimp; and (8) certain battered shrimp. Dusted shrimp is a shrimp-based product: (1) that is produced from fresh (or thawed-from-frozen) and peeled shrimp; (2) to which a "dusting" layer of rice or wheat flour of at least 95 percent purity has been applied; (3) with the entire surface of the shrimp flesh thoroughly and evenly coated with the flour; (4) with the nonshrimp
The products covered by the scope are currently classified under the following HTSUS subheadings: 0306.17.0004, 0306.17.0005, 0306.17.0007, 0306.17.0008, 0306.17.0010, 0306.17.0011, 0306.17.0013, 0306.17.0014, 0306.17.0016, 0306.17.0017, 0306.17.0019, 0306.17.0020, 0306.17.0022, 0306.17.0023, 0306.17.0025, 0306.17.0026, 0306.17.0028, 0306.17.0029, 0306.17.0041, 0306.17.0042, 1605.21.1030, and 1605.29.1010. These HTSUS subheadings are provided for convenience and for customs purposes only and are not dispositive, but rather the written description of the scope is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Use of Facts Available
IV. Subsidies Valuation
V. Analysis of Cross-Ownership
VI. Changes Since the Preliminary Determination
VII. Analysis of Programs
VIII. Discussion of the Issues
Comment 1: Whether Commerce Erred in Its Export Promotion of Capital Goods Scheme (EPCGS) Calculation for Sandhya
Comment 2: Whether Commerce Erred in its Productivity-Linked Incentive (PLI) Calculation
Comment 3: Whether Commerce Erred in its Calculation of The Andhra Pradesh Power Subsidy for Aquaculture Farmers (PSA)
Comment 4: Whether Commerce Erred in Calculating the Grants for Food Processing
Comment 5: Whether Commerce Erred in Calculating the Pre-Shipment and Post-Shipment Export Financing Programs (EFPPS, EF2, and EF3)
Comment 6: Whether the EFPPS Program is Countervailable
Comment 7: Whether Section 771b of the Act is Applicable to this Investigation
Comment 8: Whether the Duty Drawback Program (DDB) is Countervailable
Comment 9: Whether the Remission of Duties and Taxes on Export Products (RoDTEP) is Countervailable
Comment 10: Whether Neeli Sea Foods Private Limited (Neeli) Received Any Export Financing (EFPPS, EF2, or EF3) Benefit During the POI
IX. Recommendation
[FR Doc. 2024-24952 Filed 10-25-24; 8:45 am]
BILLING CODE 3510-DS-P