Notice2022-13565
Urea Ammonium Nitrate Solutions From the Russian Federation: 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
June 24, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of urea ammonium nitrate solutions (UAN) from the Russian Federation (Russia).
Full Text
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<title>Federal Register, Volume 87 Issue 121 (Friday, June 24, 2022)</title>
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[Federal Register Volume 87, Number 121 (Friday, June 24, 2022)]
[Notices]
[Pages 37836-37838]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-13565]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-821-832]
Urea Ammonium Nitrate Solutions From the Russian Federation:
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 urea ammonium nitrate solutions (UAN) from the Russian Federation
(Russia).
DATES: Applicable June 24, 2022.
FOR FURTHER INFORMATION CONTACT: Kristen Johnson (Public Joint Stock
Company Acron (Acron)) or John Hoffner and Laura Griffith (the EuroChem
Companies), AD/CVD Operations, Office III, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
4793, (202) 482-3315, or (202) 482-6430, respectively.
SUPPLEMENTARY INFORMATION:
Background
On December 3, 2021, Commerce published its Preliminary
Determination.\1\ Subsequently, on February 17, 2022, 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 made available to the
public 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 Urea Ammonium Nitrate Solutions from the Russian
Federation: Preliminary Affirmative Countervailing Duty
Determination and Alignment of Final Determination with the Final
Antidumping Duty Determination, 86 FR 68635 (December 3, 2021)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum.
\2\ See Memorandum, ``Post-Preliminary Analysis in
Countervailing Duty Investigation of Urea Ammonium Nitrate Solutions
from the Russian Federation,'' dated February 17, 2022 (Post-
Preliminary Analysis).
\3\ See Memorandum, ``Decision Memorandum for the Final
Affirmative Determination in the Countervailing Duty Investigation
of Urea Ammonium Nitrate Solutions from the Russian Federation,''
dated concurrently with, and hereby adopted by, this notice (Issues
and Decision 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 products covered by this investigation are UAN from Russia. For
a complete description of the scope of the investigation, see Appendix
I.
Scope Comments
No interested party commented on the scope of the investigation as
it appeared in the Preliminary Determination. Therefore, no changes
were made to the 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 that were submitted by parties in this
investigation are discussed in the Issues and Decision Memorandum. For
a list of the issues raised by interested parties and addressed in the
Issues and Decision Memorandum, see Appendix II to this notice.
Methodology
Commerce conducted this investigation in accordance with section
701 the Tariff Act of 1930, as amended (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 a respondent did not act to the best of its ability
in responding to Commerce's 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 Issue 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
verifications 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 Letters, ``Countervailing Duty Investigation
of Urea Ammonium Nitrate Solutions from the Russian Federation:
Supplemental Questionnaire in Lieu of On-Site Verification for the
Government of the Russian Federation,'' dated February 22, 2022;
``Countervailing Duty Investigation of Urea Ammonium Nitrate
Solutions from the Russian Federation: Supplemental Questionnaire in
Lieu of On-Site Verification for Acron,'' dated February 22, 2022;
and ``Countervailing Duty Investigation of Urea Ammonium Nitrate
Solutions from the Russian Federation: Verification Questionnaire
for the EuroChem Companies,'' dated February 25, 2022.
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Changes Since the Preliminary Determination and Post-Preliminary
Analysis
Based on our review and analysis of the comments received from
parties, we made certain changes to the respondents' preliminary
subsidy rate calculations. 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
Acron and the EuroChem Companies. 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.
Commerce has calculated individual estimated countervailable
subsidy rates for Acron and the EuroChem Companies \6\ that are not
zero, de minimis, or based entirely on facts otherwise available. We,
therefore, calculated the all-others rate using a weighted average of
the individual estimated subsidy rates calculated for the examined
respondents using each company's publicly-ranged values for
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the merchandise under consideration,\7\ in accordance with section
705(c)(5)(A)(i) of the Act.
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\6\ For purposes of this investigation, the EuroChem Companies
are: MCC EuroChem; Nevinka; and NAK Azot.
\7\ 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
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010). As complete publicly ranged sales data was
available, Commerce based the all-others rate on the publicly ranged
sales data of the mandatory respondents. For a complete analysis of
the data, see Memorandum, ``Countervailing Duty Investigation of
Urea Ammonium Nitrate Solutions from the Russian Federation: All
Others Rate for Final Determination All-Others Rate Calculation
Memorandum,'' dated concurrently with, and hereby adopted by, this
notice.
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Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist:
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Subsidy rate
Company (percent ad
valorem)
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EuroChem Companies \8\.................................. 6.27
Public Joint Stock Company Acron \9\.................... 9.66
All Others.............................................. 8.47
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Disclosure
Commerce intends to disclose to interested parties the 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 the publication of this notice in the Federal
Register, in accordance with 19 CFR 351.244(b).
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\8\ Commerce determines that the following companies are cross-
owned with Joint Stock Company Nevinnomyssky Azot (Nevinka): Mineral
and Chemical Company EuroChem, Joint Stock Company (MCC EuroChem);
and Azot, Joint Stock Company (NAK Azot).
\9\ Commerce determines that the following companies are cross-
owned with Public Joint Stock Company Acron: Joint Stock Company
Acron Group; and Acron Switzerland AG.
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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, we 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 December 3, 2021, 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 April 2, 2022, but to continue the
suspension of liquidation of all entries of subject merchandise between
December 3, 2021, and April 1, 2022.
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 entries of subject merchandise in the amounts indicated above. 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 UAN from
Russia. 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 an 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: June 17, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The merchandise covered by this investigation is all mixtures of
urea and ammonium nitrate in aqueous or ammonia solution, regardless
of nitrogen concentration by weight, and regardless of the presence
of additives, such as corrosion inhibiters and soluble micro or
macronutrients (UAN).
Subject merchandise includes merchandise matching the above
description that has been processed in a third country, including by
commingling, diluting, adding or removing additives, or performing
any other processing that would not otherwise remove the merchandise
from the scope of the investigation if performed in the subject
country.
The scope also includes UAN that is commingled with UAN from
sources not subject to this investigation. Only the subject
component of such commingled products is covered by the scope of
this investigation.
The covered merchandise is currently classified in the
Harmonized Tariff Schedule of the United States (HTSUS) at
subheading 3102.80.0000. Although the HTSUS subheading is provided
for convenience and customs purposes, the written description of the
scope is dispositive.
Appendix II--List of Topics Discussed in the Issue and Decision
Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation
V. Benchmark and Interest Rates
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Analysis of Programs
VIII. Analysis of Comments
Comment 1: Whether Commerce Should Apply a Tier-One Benchmark
for Natural Gas
Comment 2: Whether Kazakh Exports to Russia Are World Market
Prices Available to Purchasers in Russia
Comment 3: Whether Kazakhstan's Natural Gas Market Is Distorted
by Government of Russia (GOR) or Government of Kazakhstan (GOK)
Involvement Thereby Making Prices for Kazakh Exports of Natural Gas
Ineligible for Use as a Tier-Two Benchmark
Comment 4: Whether Commerce Should Select the International
Energy Agency
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(IEA) Industry Natural Gas Prices as a Tier-Three Benchmark
Comment 5: Whether Commerce Should Apply Adverse Facts Available
(AFA) to Find PJSC Rosneft Oil Company (Rosneft) a Government
Authority
Comment 6: Whether the Provision of Natural Gas Is De Facto
Specific
Comment 7: Whether Commerce Should Attribute the Benefit from
Subsidies to All Affiliated EuroChem Companies
Comment 8: Whether Commerce Will Implement the Ministerial Error
Correction
IX. Recommendation
[FR Doc. 2022-13565 Filed 6-23-22; 8:45 am]
BILLING CODE 3510-DS-P
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