Notice2023-00073
Sodium Nitrite 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
January 6, 2023
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 sodium nitrite from India. The period of investigation is January 1, 2021, through December 31, 2021.
Full Text
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<title>Federal Register, Volume 88 Issue 4 (Friday, January 6, 2023)</title>
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[Federal Register Volume 88, Number 4 (Friday, January 6, 2023)]
[Notices]
[Pages 1042-1044]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-00073]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-907]
Sodium Nitrite 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 sodium nitrite from India. The period of investigation is January 1,
2021, through December 31, 2021.
DATES: Applicable January 6, 2023.
FOR FURTHER INFORMATION CONTACT: Eva Kim, AD/CVD Operations, Office IV,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230; telephone: (202) 482-8283.
[[Page 1043]]
SUPPLEMENTARY INFORMATION:
Background
On June 21, 2022, Commerce published the Preliminary Determination
in the Federal Register.\1\ For a complete description of the events
that followed the Preliminary Determination, see the Issues and
Decision Memorandum.\2\ 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 Sodium Nitrite from India: Preliminary Affirmative
Countervailing Duty Determination and Alignment of Final
Determination With the Final Antidumping Duty Determination, 87 FR
36824 (June 21, 2022) (Preliminary Determination), and accompanying
Preliminary Decision Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination of the Countervailing Duty Investigation of
Sodium Nitrite from India,'' dated concurrently with, and hereby
adopted by, this notice (Issues and Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are sodium nitrite from
India. For a complete description of the scope of this investigation,
see Appendix I.
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 Tariff Act of 1930, as amended (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.\3\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\3\ 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
facts otherwise available, including adverse inferences, pursuant to
sections 776(a) and (b) of the Act. For a full discussion of our
application of facts available (AFA), see the section ``Use of Facts
Available and Adverse Inferences'' in the accompanying Issues and
Decision Memorandum.
Verification
Consistent with section 782(i) of the Act, in October 2022,
Commerce verified all information reported by Deepak Nitrite Limited
(Deepak). We used standard verification procedures, including an
examination of relevant accounting records and original source
documents provided by the respondent.\4\
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\4\ See Memorandum, ``Verification of the Questionnaire
Responses of Deepak Nitrite Limited,'' dated October 19, 2022.
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Changes Since the Preliminary Determination
Based on our review and analysis of the information at verification
and comments received from interested parties, we made certain changes
to the subsidy rate calculations for Deepak. Consequently, Commerce
also revised the all-others rate. For a discussion of these changes,
see the Issues and Decision Memorandum.
All-Others Rate
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
calculated an individual estimated countervailable subsidy rate for the
sole mandatory respondent, Deepak. 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, Commerce calculated a net countervailable
subsidy rate for Deepak, the only individually examined exporter/
producer in this investigation. Because the only subsidy rate
calculated in this investigation is not zero, de minimis, or based
entirely on facts otherwise available, the net countervailable subsidy
rate calculated for Deepak is the subsidy rate assigned to all other
producers and exporters, pursuant to section 705(c)(5)(1)(A)(i) of the
Act.
Final Determination
Commerce determines that the following estimated net
countervailable subsidy rates exist:
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Subsidy rate
Company (percent ad
valorem)
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Deepak Nitrite Limited.................................. 2.40
All Others.............................................. 2.40
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Disclosure
Commerce intends to disclose to interested parties its calculations
performed in this final determination within five days of any 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, we instructed U.S. Customs
and Border Protection (CBP) to suspend liquidation of entries of
subject merchandise from India that were entered, or withdrawn from
warehouse, for consumption, on or after June 21, 2022, which is 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
October 19, 2022, but to continue the suspension of liquidation of all
entries of subject merchandise between June 21, 2022, and October 18,
2022.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
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 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 sodium
nitrite from India. As Commerce's final determination is affirmative,
in accordance with section
[[Page 1044]]
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, by reason of imports of sodium nitrite
from India. In addition, we are making available to the ITC all non-
privileged and non-proprietary 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. 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
from warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Continuation of
Suspension of Liquidation'' section.
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 777(i) of the Act, and 19 CFR 351.210(c).
Dated: December 30, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The product covered by this investigation is sodium nitrite in
any form, at any purity level. In addition, the sodium nitrite
covered by this investigation may or may not contain an anticaking
agent. Examples of names commonly used to reference sodium nitrite
are nitrous acid, sodium salt, anti-rust, diazotizing salts,
erinitrit, and filmerine. Sodium nitrite's chemical composition is
NaNO2, and it is generally classified under subheading 2834.10.1000
of the Harmonized Tariff Schedule of the United States (HTSUS). The
American Chemical Society Chemical Abstract Service (CAS) has
assigned the name ``sodium nitrite'' to sodium nitrite. The CAS
registry number is 7632-00-0. For purposes of the scope of this
investigation, the narrative description is dispositive, not the
tariff heading, CAS registry number or CAS name, which are provided
for convenience and customs purposes.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Subsidies Valuation
IV. Use of Facts Available and Adverse Inferences
V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Whether Provision of Land for Less Than Adequate
Remuneration (LTAR) Is Countervailable
Comment 2: Whether Commerce Correctly Calculated the Benefits
for Provision of Land LTAR
Comment 3: Whether the Selection of Land LTAR Benchmark Is
Appropriate
Comment 4: Whether the Provision of Coal for LTAR Is
Countervailable
Comment 5: Whether Commerce Correctly Calculated the Benefit for
Provision of Coal LTAR
Comment 6: Whether Commerce Correctly Calculated the Benchmark
for Provision of Coal LTAR
Comment 7: Whether Commerce Should Find that Section 35(1)(iv)
of the Income Tax Act (ITA), 1961 Is a Countervailable Program
Comment 8: Whether Commerce Correctly Calculated the Benefits
for Section 35(1)(iv) of the Income Tax Act, 1961
Comment 9: Whether Commerce Should Find that Deepak Failed To
Report Benefits Under Other Subsections for Section 35 of the ITA
Comment 10: Whether Commerce Should Find Should Find that Deepak
and Deepak Fertilizers and Petrochemicals Corporation (DFPCL) are
Cross-Owned Affiliates
Comment 11: Whether Commerce Should Find That Other Indian
Producers Did Not Cooperate, and Assign a Rate Based on Adverse
Inferences (AFA) to These Other Exporters
Comment 12: Whether Commerce Should Calculate Benefits for
Status Holder Incentive Scheme (SHIS)
Comment 13: Whether Commerce Should Correct the Duty Drawback
(DDB) Calculation
Comment 14: Whether Commerce Should Calculate Benefits Under the
Merchandise Export from India Scheme (MEIS)
Comment 15: Whether Commerce Chose the Appropriate Benchmark for
the Gujarat Industrial Development Corporation (GIDC) Preferential
Water Rates Program
Comment 16: Whether Commerce Correctly Calculated a Benchmark
Representing the Delivered Price of Natural Gas
VII. Recommendation
[FR Doc. 2023-00073 Filed 1-5-23; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on January 6, 2023.
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