Notice2022-06155
Organic Soybean Meal From India: Final Affirmative Countervailing Duty Determination
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 23, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of organic soybean meal from India.
Full Text
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<title>Federal Register, Volume 87 Issue 56 (Wednesday, March 23, 2022)</title>
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[Federal Register Volume 87, Number 56 (Wednesday, March 23, 2022)]
[Notices]
[Pages 16453-16455]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-06155]
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Notices
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Federal Register / Vol. 87, No. 56 / Wednesday, March 23, 2022 /
Notices
[[Page 16453]]
DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-902]
Organic Soybean Meal From India: Final Affirmative Countervailing
Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of organic soybean meal from India.
DATES: Applicable March 23, 2022.
FOR FURTHER INFORMATION CONTACT: Chien-Min Yang, AD/CVD Operations,
Office VII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-5484.
SUPPLEMENTARY INFORMATION:
Background
On September 3, 2021, 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 determination of this CVD investigation with the
final determination in the companion antidumping duty investigation of
organic soybean meal from India. On December 8, 2021, Commerce released
its Post-Preliminary Analysis.\2\ For a complete description of the
events that followed the Preliminary Determination and Post-Preliminary
Analysis, see the Issues and Decision Memorandum.\3\ 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 <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete
version of the Issues and Decision Memorandum can be accessed directly
at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\1\ See Organic Soybean Meal from India: Preliminary Affirmative
Countervailing Duty Determination and Alignment of Final
Determination with Final Antidumping Duty Determination, 86 FR 49514
(September 3, 2021) and accompanying Preliminary Decision Memorandum
(PDM).
\2\ See Memorandum, ``Post-Preliminary Analysis Memorandum,''
dated December 8, 2021.
\3\ See Memorandum, ``Issues and Decisions Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Organic Soybean Meal from India,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decisions Memorandum).
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Period of Investigation
The period of investigation is January 1, 2020, through December
31, 2020.
Scope of the Investigation
The product covered by this investigation is organic soybean meal
from India. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
During the course of this investigation, Commerce did not receive
scope comments from any interested parties. Thus, Commerce is not
modifying the scope language as it appeared in the Preliminary
Determination. See Appendix I for the final scope of the investigation.
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 of this notice.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Act. For each of the subsidy programs found 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.\4\ For a full description
of the methodology underlying our final determination, see the Issues
and Decision Memorandum.
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\4\ 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.
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In making this final determination, Commerce relied, in part, on
the facts otherwise available on the record pursuant to section 776(a)
of the Act. Additionally, as discussed in the Issues and Decision
Memorandum, because the Government of India and various producers or
exporters of subject merchandise did not act to the best of their
abilities in responding to our requests for information, we drew
adverse inferences, where appropriate, in selecting from among the
facts otherwise available, pursuant to section 776(b) of the Act. For
further information, see the section ``Use of Facts Otherwise Available
and Adverse Inferences'' in the accompanying Issues and Decision
Memorandum.
Verification
Commerce was unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. However, we took additional steps in lieu of on-site
verification to verify the information relied upon in making this final
determination, in accordance with section 782(i) of the Act.\5\
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\5\ See Commerce's Letter, ``Countervailing Duty Investigation
of Organic Soybean Meal From India: In Lieu of On-Site Verification
Questionnaire,'' dated December 15, 2021; see also Bergwerff's
Letter, ``Organic Soybean Meal From India: In Lieu of Onsite
Verification Questionnaire Response,'' dated December 22, 2021.
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, we made certain changes to the subsidy rate calculations for
Bergwerff Organic India Private Limited (Bergwerff), All Others rate
and the calculation of AFA rates. For a discussion of these changes,
see the Issues and Decision Memorandum.
All-Others Rate
In this investigation, the only individually calculated rate that
is not
[[Page 16454]]
zero, de minimis or based entirely on facts otherwise available is the
rate calculated for Bergwerff. Consequently, the rate calculated for
Bergwerff is also assigned as the rate for all other producers and
exporters not individually examined in this investigation.
Final Determination
Commerce determines the total estimated net countervailable subsidy
rates to be:
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Subsidy rate
Company (percent)
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Bergwerff Organic India Private Limited \6\............. 9.57
Shanti Worldwide........................................ 283.91
Shri Sumati Oil Industries Pvt. Ltd..................... 283.91
Navjyot International Pvt. Ltd.......................... 283.91
Ish Agritech Pvt. Ltd \7\............................... 283.91
Satguru Organics Pvt. Ltd \8\........................... 283.91
Radiance Overseas \9\................................... 283.91
Swastik Enterprises \10\................................ 283.91
Soni Soya Products Limited \11\......................... 283.91
Raj Foods International \12\............................ 283.91
Vantage Organic Foods Pvt. Ltd \13\..................... 283.91
Shree Bhagwati Oil Mill \14\............................ 283.91
Pragati Organics \15\................................... 283.91
All Others.............................................. 9.57
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\6\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following company to be cross-owned with
Bergwerff: Suminter India Organics Private Limited.
\7\ See Preliminary Decision Memorandum at section VII, ``Use of
Facts Otherwise Available and Adverse Inferences.''
\8\ Id.
\9\ Id.
\10\ Id.
\11\ Id.
\12\ Id.
\13\ Id.
\14\ Id.
\15\ Id.
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Disclosure
Commerce intends to disclose to interested parties its calculations
and analysis performed 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 publication of this notice 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 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 September 3, 2021, the date of publication of the Preliminary
Determination in the Federal Register. In accordance with section
703(d) of the Act, effective January 1, 2022, we instructed CBP to
discontinue the suspension of liquidation of all entries at that time,
but to continue the suspension of liquidation of all entries from
September 3, 2021, through December 31, 2021.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order and require
a cash deposit of estimated countervailing duties for such entries of
subject merchandise in the amounts indicated above, in accordance with
section 706(a) 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 canceled.
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 organic
soybean meal 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 threatened with material injury. In
addition, we are making available to the ITC all non-privileged and
nonproprietary information related to this investigation. We will allow
the ITC access to all privileged and business proprietary information
in our files, provided the ITC confirms that it will not disclose such
information, either publicly or under an administrative protective
order (APO), without the written consent of the Assistant Secretary for
Enforcement and Compliance.
Notification Regarding APO
In the event that the ITC issues a final negative injury
determination, 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 771(i) of the Act, and 19 CFR 351.210(c).
Dated: March 17, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise subject to the investigation is certified
organic soybean meal. Certified organic soybean meal results from
the mechanical pressing of certified organic soybeans into ground
products known as soybean cake, soybean chips, or soybean flakes,
with or without oil residues. Soybean cake is the product after the
extraction of part of the oil from soybeans. Soybean chips and
soybean flakes are produced by cracking, heating, and flaking
soybeans and reducing the oil content of the conditioned product.
``Certified organic soybean meal'' is certified by the U.S.
Department of Agriculture (USDA) National Organic Program (NOP) or
equivalently certified to NOP standards or NOP-equivalent
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standards under an existing organic equivalency or recognition
agreement.
Certified organic soybean meal subject to this investigation has
a protein content of 34 percent or higher.
Organic soybean meal that is otherwise subject to this
investigation is included when incorporated in admixtures, including
but not limited to prepared animal feeds. Only the organic soybean
meal component of such admixture is covered by the scope of this
investigation.
The products covered by this investigation are currently
classified under the following Harmonized Tariff Schedule of the
United States (HTSUS) subheadings: 1208.10.0010 and 2304.00.0000.
Certified organic soybean meal may also enter under HTSUS
2309.90.1005, 2309.90.1015, 2309.90.1020, 2309.90.1030,
2309.90.1032, 2309.90.1035, 2309.90.1045, 2309.90.1050, and
2308.00.9890.
The HTSUS subheadings and specifications are provided for
convenience and customs purposes; the written description of the
scope is dispositive.
Appendix II
List of Topics Discussed in the Decision Memorandum:
I. Summary
II. Background
III. Scope of the Investigation
IV. Use of Facts Otherwise Available and Adverse Inferences: Non-
Cooperative and Non-Responsive Companies
V. Subsidies Valuation
VI. Analysis of Programs
VII. Analysis of Comments
Comment 1: Whether Bergwerff Failed to Identify an Affiliated
Supplier
Comment 2: Whether Commerce Should Apply Adverse Facts Available
(AFA) to Bergwerff for Failing to Report Use of an Export Promotion
Scheme
Comment 3: Whether Commerce Should Countervail the Duty Drawback
Benefits Received by Bergwerff for Organic Soybeans
Comment 4: Whether Commerce Should Have Selected Additional
Respondents for Individual Examination in this Investigation
Comment 5: Whether Commerce Should Apply Total AFA to Shanti
Overseas (India) Ltd.
Comment 6: Whether Commerce Should Recalculate the Benefits
Received Under the Duty-Free Importation of Capital Goods and Raw
Materials, Components, Consumables, Intermediates, Spare Parts and
Packing Material, and Exemption from Central Sales Tax (CST) on
Purchases of Capital Goods and Raw Materials, Components,
Consumables, Intermediates, Spare Parts, and Packing Material
Comment 7: Whether Commerce Should Countervail the Exemption
from Payment of Central Sales Tax (CST) on Purchases of Capital
Goods and Raw Materials, Components, Consumables, Intermediates,
Spare Parts and Packing Materials
Comment 8: Whether Commerce Should Recalculate the Benefits
Received Under the Merchandise Export Incentive Scheme (MEIS)
Program
Comment 9: Whether Commerce Should Countervail the Pre-Shipment
and Post-Shipment Export Financing Program
Comment 10: Whether Commerce Assigned the AFA Rate Twice for the
SGMP Exemption from Electricity Duty and Cess on Electricity
Supplied to a Special Economic Zone (SEZ) Unit Program
Comment 11: Whether Commerce Should Countervail the Advance
Authorization Program (AAP) and the Duty Drawback (DDB) Program
Comment 12: Whether Commerce Should Apply AFA to the Non-
Cooperative Mandatory Respondents that Withdrew from Participation
in the Investigation
Comment 13: Whether Commerce Should Apply AFA to the Government
of India (GOI)
Comment 14: Whether Commerce Correctly Initiated the
Transportation and Marketing Assistance (TMA) for Special
Agriculture Products
VIII. Recommendation
[FR Doc. 2022-06155 Filed 3-22-22; 8:45 am]
BILLING CODE 3510-DS-P
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