Notice2023-07246
Certain Corrosion Inhibitors From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review and Rescission of Review, in Part; 2020-2021
Primary source
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Published
April 6, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain corrosion inhibitors (corrosion inhibitors) from the People's Republic of China (China). The period of review is July 13, 2020, through December 31, 2021. In addition, we are rescinding the review with respect to 27 companies. Interested parties are invited to comment on these preliminary results.
Full Text
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<title>Federal Register, Volume 88 Issue 66 (Thursday, April 6, 2023)</title>
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[Federal Register Volume 88, Number 66 (Thursday, April 6, 2023)]
[Notices]
[Pages 20475-20478]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-07246]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-123]
Certain Corrosion Inhibitors From the People's Republic of China:
Preliminary Results of Countervailing Duty Administrative Review and
Rescission of Review, in Part; 2020-2021
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of certain corrosion inhibitors (corrosion
inhibitors) from the People's Republic of China (China). The period of
review is July 13, 2020, through December 31, 2021. In addition, we are
rescinding the review with respect to 27 companies. Interested parties
are invited to comment on these preliminary results.
DATES: Applicable April 6, 2023.
FOR FURTHER INFORMATION CONTACT: Brontee George or Theodore Pearson,
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) 482-4656 or (202)
482-2631, respectively.
SUPPLEMENTARY INFORMATION:
Background
On March 19, 2021, Commerce published in the Federal Register the
countervailing duty (CVD) order on certain corrosion inhibitors from
China.\1\ On May 13, 2022, Commerce published the notice of initiation
of an administrative review of the Order for the period July 13, 2020,
through December 31, 2021.\2\ On July 19, 2022,
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\1\ See Certain Corrosion Inhibitors from the People's Republic
of China: Antidumping Duty and Countervailing Duty Orders, 86 FR
14869 (March 19, 2021) (Order).
\2\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 87 FR 29280 (May 13, 2022).
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[[Page 20476]]
Commerce selected Anhui Trust Chem Co., Ltd. and Nantong Botao Chemical
Co., Ltd. as mandatory respondents in this administrative review.\3\ On
October 24, 2022, Commerce exercised its discretion to extend the
preliminary results of this administrative review by 120 days, until
March 31, 2023.\4\
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\3\ See Memorandum, ``Respondent Selection,'' dated July 19,
2022.
\4\ See Memorandum, ``Extension of Deadline for Preliminary
Results of Countervailing Duty Administrative Review; 2020-2021,''
dated October 24, 2022.
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For a complete description of the events that followed the
initiation of this administrative review, see the Preliminary Decision
Memorandum.\5\ A list of topics discussed in the Preliminary Decision
Memorandum is included as Appendix I 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 <a href="http://access.trade.gov">http://access.trade.gov</a>. In addition, a complete
version of the Preliminary 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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\5\ See Memorandum, ``Decision Memorandum for the Preliminary
Results of Countervailing Duty Administrative Review and Rescission
in Part; 2020--2021: Certain Corrosion Inhibitors from the People's
Republic of China,'' dated concurrently with, and hereby adopted by,
this notice (Preliminary Decision Memorandum).
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Scope of the Order
The product covered by the Order are corrosion inhibitors from
China. For a complete description of the scope, see the Preliminary
Decision Memorandum.
Methodology
Commerce is conducting this administrative review in accordance
with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the
Act). For each of the subsidy programs found countervailable, Commerce
preliminarily finds that there is a subsidy (i.e., a government-
provided financial contribution that gives rise to a benefit to the
recipient, and that the subsidy is specific).\6\
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\6\ 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 these findings, Commerce relied, in part, on facts
available and, because it finds that one or more respondents, including
the Government of China, did not act to the best of their ability to
respond to Commerce's requests for information, it drew an adverse
inference where appropriate in selecting from among the facts otherwise
available.\7\ For further information, see ``Use of Facts Otherwise
Available and Adverse Inferences'' in the Preliminary Decision
Memorandum.
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\7\ See sections 776(a) and (b) of the Act.
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Rescission of Administrative Review, in Part
Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an
administrative review, in whole or in part, if the parties that
requested a review withdraw the request within 90 days of the date of
publication of the notice of initiation. Commerce received a timely-
filed withdrawal of review request from Wincom Incorporated (the
petitioner) with respect to 29 companies, pursuant to 19 CFR
351.213(d)(1). However, two of the companies for which the petitioner
withdrew its review request are subject to review requests that were
not withdrawn. For the other 27 companies, because the withdrawal
request was timely filed, and no other parties requested a review of
these companies, in accordance with 19 CFR 351.213(d)(1), Commerce is
rescinding this administrative review with respect to these 27
companies. For a list of companies, see Appendix II.
Preliminary Results of Review
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate--2020 (percent Subsidy rate--2021 (percent
Company ad valorem) ad valorem)
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Anhui Trust Chem Co., Ltd \8\....................... 140.61 51.17
Nantong Botao Chemical Co., Ltd \9\................. 52.12 10.77
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Review-Specific Average Rate Applicable to the Following Companies \10\
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Gold Chemical Limited............................... 83.41 33.89
Jiangyin Delian Chemical Co., Ltd................... 83.41 33.89
Nantong Kanghua Chemical Co., Ltd................... 83.41 33.89
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Preliminary Rate for Non-Selected Companies Under Review
There are three companies for which a review was requested and not
rescinded, and which were not selected as mandatory respondents or
found to be cross-owned with a mandatory respondent. The statute and
Commerce's regulations do not directly address the establishment of
rates to be applied to companies not selected for individual
examination where Commerce limits its examination in an administrative
review pursuant to section 777A(e)(2) of the Act. However, Commerce
normally determines the rates for non-selected companies in reviews in
a manner that is consistent with section 705(c)(5) of the Act, which
provides the basis for calculating the all-others rate in an
investigation.
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\8\ As discussed in the Preliminary Decision Memorandum,
Commerce preliminarily finds the following companies to be cross-
owned with ATC: Nanjing Trust Chem Co., Ltd. and Jiangsu Trust Chem
Co., Ltd.
\9\ As discussed in the Preliminary Decision Memorandum,
Commerce preliminarily finds the following companies to be cross-
owned with Botao: Rugao Connect Chemical Co., Ltd.; Rugao Jinling
Chemical Co., Ltd.; and Nantong Yutu Group Co., Ltd.
\10\ This rate is based on the rate for the respondent that was
selected for individual review, excluding rates that are zero, de
minimis, or based entirely on facts available. See section
735(c)(5)(A) of the Act.
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Section 705(c)(5)(A)(i) of the Act instructs Commerce, as a general
rule, to calculate an all-others rate equal to the weighted average of
the countervailable subsidy rates established for exporters and/or
producers individually examined, excluding any rates that are zero, de
minimis, or based entirely on facts available. In this review, the
preliminary rates calculated for Anhui Trust Chem Co., Ltd. (ATC) and
Nantong Botao Chemical Co., Ltd. (Botao) were above de minimis and not
based entirely on facts available. Therefore, we are applying to the
non-selected companies the average of the net subsidy rates calculated
for ATC and
[[Page 20477]]
Botao, which we calculated using the publicly-ranged sales data
submitted by ATC and Botao.\11\ This methodology to establish the rate
for the non-selected companies uses section 705(c)(5)(A) of the Act,
which governs the calculation of the ``all-others'' rate in an
investigation, as guidance. For further information on the calculation
of the non-selected respondent rate, refer to the section in the
Preliminary Decision Memorandum entitled ``Non-Selected Companies Under
Review.''
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\11\ 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).
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Cash Deposit Requirements
Pursuant to section 751(a)(2)(C) of the Act, Commerce intends, upon
publication of the final results, to instruct CBP to collect cash
deposits of estimated countervailing duties in the amounts indicated
above for 2021 for each of the respondents listed above on shipments of
subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the date of publication of the final results of
this administrative review. If the rate calculated in the final results
is zero or de minimis, no cash deposit will be required on shipments of
the subject merchandise entered or withdrawn from warehouse, for
consumption on or after the date of publication of the final results of
this review.
For all non-reviewed firms, CBP will continue to collect cash
deposits of estimated countervailing duties at the all-others rate or
the most recent company-specific rate applicable to the company, as
appropriate. These cash deposit requirements, when imposed, shall
remain in effect until further notice.
Assessment Rates
In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily
assigned subsidy rates in the amounts shown above for the producers/
exporters shown above. Consistent with section 751(a)(1) of the Act and
19 CFR 351.212(b)(2), upon issuance of the final results, Commerce
shall determine, and CBP shall assess, countervailing duties on all
appropriate entries covered by this review. We intend to issue
assessment instructions to CBP no earlier than 35 days after the date
of publication of the final results of this review in the Federal
Register. If a timely summons is filed at the U.S. Court of
International Trade, the assessment instructions will direct CBP not to
liquidate relevant entries until the time for parties to file a request
for a statutory injunction has expired (i.e., within 90 days of
publication).
For the companies for which this review is rescinded with these
preliminary results, we will instruct CBP to assess countervailing
duties on all appropriate entries at a rate equal to the cash deposit
of estimated countervailing duties required at the time of entry, or
withdrawal from warehouse, for consumption, during the period July 13,
2020, through December 31, 2021, in accordance with 19 CFR
351.212(c)(l)(i).
Disclosure and Public Comment
We will disclose to parties in this review, the calculations
performed for these preliminary results within five days after the date
of publication of this notice.\12\ Interested parties may submit case
briefs no later than 30 days after the date of publication of these
preliminary results of review.\13\ Rebuttals to case briefs may be
filed no later than seven days after the case briefs are filed, and all
rebuttal comments must be limited to comments raised in the case
briefs.\14\ Note that Commerce has temporarily modified certain of its
requirements for serving documents containing business proprietary
information until further notice.\15\ Pursuant to 19 CFR 351.309(c)(2)
and (d)(2), parties who submit case briefs or rebuttal briefs in this
review are encouraged to submit with each argument: (1) a statement of
the issue; (2) a brief summary of the argument; and (3) a table of
authorities.
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\12\ See 19 CFR 351.224(b).
\13\ See 19 CFR 351.309(c)(1)(ii).
\14\ See 19 CFR 351.309(d).
\15\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18,
2020); and Temporary Rule Modifying AD/CVD Service Requirements Due
to COVID-19; Extension of Effective Period, 85 FR 41363 (July 10,
2020).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, filed
electronically using ACCESS. An electronically-filed request must be
received successfully, and in its entirety, by ACCESS by 5:00 p.m.
Eastern Time, within 30 days after the date of publication of this
notice. Hearing requests should contain the party's name, address, and
telephone number, the number of participants, whether any participant
is a foreign national, and a list of the issues to be discussed. If a
request for a hearing is made, parties will be notified of the date and
time for the hearing to be determined.
Unless extended, we intend to issue the final results of this
administrative review, which will include the results of our analysis
of the issues raised in the case briefs, within 120 days of publication
of these preliminary results in the Federal Register, pursuant to
section 751(a)(3)(A) of the Act and 19 CFR 351.213(h).
Notification to Interested Parties
These preliminary results and notice are issued and published in
accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR
351.213 and 351.221(b)(4).
Dated: March 30, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Non-Selected Companies Under Review
V. Partial Rescission of Administrative Review
VI. Diversification of China's Economy
VII. Use of Facts Otherwise Available and Application of Adverse
Inferences
VIII. Subsidies Valuation
IX. Interest Rate, Discount Rate, Input, Electricity, and Land
Benchmarks
X. Analysis of Programs
XI. Recommendation
Appendix II
Companies Rescinded From Review
1. Dandee Hong Kong Holdings Ltd
2. Alvarez Schaer S.A.
3. Bollore Logistics Le Havre
4. CAC Shanghai Chemical Co., Ltd.
5. Dalsem Greenhouse Technology B.V.
6. Gooyer International Co., Ltd. (Hk)
7. Haruno Sangyo Kaisha Ltd.
8. Jiangsu Bohan Industry Trade Co., Ltd.
9. Jiangsu Yangnong Chemical Group Co., Ltd.
10. Jiangyin Gold Fuda Chemical Co., Ltd.
11. Johoku Chemical Co., Ltd.
12. K. Uttamlal Exports Private Limited
13. Nanjing Hengrun Hogsu Import & Export Company
14. Nanjing Innochem Co., Ltd.
[[Page 20478]]
15. Nanjing Singchem Co., Ltd.
16. Nantong Bestime Chemical Co., Ltd.
17. Sagar Speciality Chemicals Pvt., Ltd.
18. Sinochem Pharmaceutical Co., Ltd.
19. Solenis Especialidades Quimicas Ltda
20. Techwell Technology Holding Limited
21. Tianjin Jinbin Iternational Trade
22. Vcare Medicines
23. Wuxi Base International Trade Co., Ltd.
24. Wuxi Connect Chemicals Co., Ltd.
25. Xingji Xi Chen Re Neng Co., Ltd.
26. Yasho Industries Pvt. Ltd.
27. Zaozhuang Kerui Chemicals Co., Ltd.
[FR Doc. 2023-07246 Filed 4-5-23; 8:45 am]
BILLING CODE 3510-DS-P
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