Certain Corrosion Inhibitors From the People's Republic of China: Final Results and Partial Recission of Countervailing Duty Administrative Review; 2020-2021
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Issuing agencies
Abstract
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies were provided to certain exporters/producers of certain corrosion inhibitors from the People's Republic of China (China) during the period of review (POR) July 13, 2020, through December 31, 2021. Commerce is also rescinding the review with respect to one company.
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<title>Federal Register, Volume 88 Issue 192 (Thursday, October 5, 2023)</title>
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[Federal Register Volume 88, Number 192 (Thursday, October 5, 2023)]
[Notices]
[Pages 69122-69124]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-22201]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-123]
Certain Corrosion Inhibitors From the People's Republic of China:
Final Results and Partial Recission of Countervailing Duty
Administrative Review; 2020-2021
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
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countervailable subsidies were provided to certain exporters/producers
of certain corrosion inhibitors from the People's Republic of China
(China) during the period of review (POR) July 13, 2020, through
December 31, 2021. Commerce is also rescinding the review with respect
to one company.
DATES: Applicable October 5, 2023.
FOR FURTHER INFORMATION CONTACT: Ted 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) 482-2631.
SUPPLEMENTARY INFORMATION:
Background
Commerce published the Preliminary Results of this administrative
review in the Federal Register on April 6, 2023, and invited interested
parties to comment.\1\ For a complete description of the events that
occurred subsequent to the Preliminary Results, see the Issues and
Decision Memorandum.\2\
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\1\ See 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, 88 FR 20475
(April 6, 2023) (Preliminary Results), and accompanying Preliminary
Decision Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Results of the Countervailing Duty Administrative Review of
Certain Corrosion Inhibitors from the People's Republic of China;
2020-2021,'' dated concurrently with, and hereby adopted by, this
notice (Issues and Decision Memorandum).
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Scope of the Order <SUP>3</SUP>
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\3\ See Certain Corrosion Inhibitors from the People's Republic
of China: Antidumping Duty and Countervailing Duty Orders, 86 FR
14869 (March 19, 2021) (Order).
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The products covered by the scope of the Order are corrosion
inhibitors from China. A full description of the scope of the Order is
contained in the Issues and Decision Memorandum.
Analysis of Comments Received
All issues raised by the interested parties in their case and
rebuttal briefs are addressed in the Issues and Decision Memorandum. A
list of topics discussed in the Issues and Decision Memorandum is
provided in the appendix to this notice. 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>.
Changes Since the Preliminary Results
Based on our analysis of comments from interested parties and the
evidence on the record, we revised the calculation of the net
countervailable subsidy rates for Anhui Trust Chem Co., Ltd. (ATC) and
Nantong Botao Chemical Co., Ltd. (Botao). For a discussion of the
issues, see the Issues and Decision Memorandum.
Methodology
Commerce conducted 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 to be countervailable, we find
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.\4\ For a complete description of the
methodology underlying all of Commerce's conclusions, including our
reliance, in part, on facts otherwise available, including adverse
facts available, pursuant to sections 776(a) and (b) of the Act, 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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Partial Rescission of Review
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. In the Preliminary Results,
Commerce rescinded the review with respect to 29 companies. Included on
that list of companies was Dandee Hong Kong Holdings Ltd., a company
identified in Wincom, Inc.'s (the petitioner) letter withdrawing the
review request.\5\ However, that company name did not match the name of
the company in the petitioner's request for review, Dandee Holdings
Ltd. (Hk) and for which Commerce initiated a review.\6\ Because
Commerce initiated a review with respect to Dandee Holdings Ltd. (Hk)
and the petitioner's withdrawal request was for Dandee Hong Kong
Holdings Ltd., Commerce invited interested parties to submit comments
regarding this issue and did not issue rescission instructions for
either company name. In response, the petitioner clarified the
appropriate name for the withdrawal of review request is for Dandee
Holdings Ltd. (Hk). No other party requested review of Dandee Holdings
Ltd. (Hk), and, therefore, we are rescinding this administrative review
with respect to Dandee Holdings Ltd. (Hk), pursuant to 19 CFR
351.213(d)(1). For a discussion of the issue, see the Issues and
Decision Memorandum.
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\5\ See Petitioner's Letter, ``Request for Administrative
Review,'' dated March 31, 2022.
\6\ See Petitioner's Letter, ``Partial Withdrawal of Request for
Administrative Review,'' dated July 6, 2022.
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Companies Not Selected for Individual Review
The statute and Commerce's regulations do not address the
establishment of a rate to be applied to companies not selected for
individual examination when 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. Section 705(c)(5)(A)(i) of the Act
instructs Commerce, as a general rule, to calculate the all-others rate
equal to the weighted average of the countervailable subsidy rates
established for exporters and producers individually investigated,
excluding any zero or de minimis countervailable subsidy rates, and any
rates determined entirely on the basis of facts available.
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. In this review,
the rates for ATC and 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 Botao, which we calculated using the publicly-ranged sales data
submitted by ATC and Botao.\7\
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\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).
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This is the same methodology Commerce applied in the Preliminary
Results for determining a rate for companies not selected for
individual examination. However, due to changes in the calculation for
ATC and Botao, we revised the non-selected rate accordingly.
Consequently, for the three non-selected companies for which a review
was requested and not rescinded, we are applying ad valorem subsidy
rates of 66.08 percent for 2020 and 14.37 percent for 2021.
Final Results of Review
We determine the following net countervailable subsidy rates exist
for the period January 1, 2021, through December 31, 2021:
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Subsidy rate-- Subsidy rate--
2020 (percent 2021 (percent
Company ad valorem) ad valorem)
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Anhui Trust Chem Co., Ltd. \8\.......... 91.45 17.08
Nantong Botao Chemical Co., Ltd. \9\.... 52.20 10.74
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Review-Specific Average Rate Applicable to the Following Companies \10\
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Gold Chemical Limited................... 66.08 14.37
Jiangyin Delian Chemical Co., Ltd....... 66.08 14.37
Nantong Kanghua Chemical Co., Ltd....... 66.08 14.37
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Disclosure
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\8\ Commerce finds the following companies to be cross-owned
with ATC: Nanjing Trust Chem Co., Ltd.; and Jiangsu Trust Chem Co.,
Ltd.
\9\ Commerce 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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Commerce intends to disclose calculations and analysis performed
for the final results of review within five days after the date of
publication of this notice in the Federal Register in accordance with
19 CFR 351.224(b).
Assessment Requirements
In accordance with section 751(a)(2)(C) of the Act and 19 CFR
351.212(b)(2), Commerce has determined, and U.S. Customs and Border
Protection (CBP) shall assess, countervailing duties on all appropriate
entries covered by this review, for the above-listed companies at the
applicable ad valorem assessment rates listed for the corresponding
time periods (i.e., July 13, 2020, to December 31, 2020, and January 1,
2021, to December 31, 2021). Commerce intends to issue assessment
instructions to CBP no earlier than 35 days after 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).
Cash Deposit Requirements
In accordance with section 751(a)(1) of the Act, Commerce also
intends to instruct CBP to collect cash deposits of estimated
countervailing duties in the amounts shown above for the above-listed
companies with regard to shipments of subject merchandise entered, or
withdrawn from warehouse, for consumption on or after the date of
publication of these final results of review. For all non-reviewed
firms, we will instruct CBP to 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, effective upon publication of these
final results, shall remain in effect until further notice.
Administrative Protective Order
This notice also serves as a final reminder to parties subject to
an administrative protective order (APO) of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3), which continues to govern
business proprietary information in this segment of the proceeding.
Timely written notification of the return or 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 sanctionable violation.
Notification to Interested Parties
The final results are issued and published in accordance with
sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(5).
Dated: September 29, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix--List of Topics Discussed in the Issues and Decision
Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Partial Rescission of Administrative Review
V. Non-Selected Rate
VI. Subsidies Valuation
VII. Use of Facts Otherwise Available and Application of Adverse
Inferences
VIII. Interest Rates, Discount Rates, and Benchmarks
IX. Analysis of Programs
X. Discussion of the Issues
Comment 1: Whether Commerce Erred in the Inputs for Less Than
Adequate Remuneration (LTAR) Calculations for a Respondent
Comment 2: Benchmarks for the Provision of Electricity for LTAR
Comment 3: Whether Commerce Incorrectly Cumulated Benefits for
an Export Trading Company
Comment 4: Whether Commerce Appropriately Found that a
Respondent Used the Export Buyer's Credit (EBC) Program
XI. Recommendation
[FR Doc. 2023-22201 Filed 10-4-23; 8:45 am]
BILLING CODE 3510-DS-P
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