Frozen Warmwater Shrimp From Indonesia: Preliminary Negative Countervailing Duty Determination, and Alignment of Final Determination With the Final Antidumping Duty Determination
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Issuing agencies
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are not being provided to producers and exporters of frozen warmwater shrimp (shrimp) from Indonesia. The period of investigation (POI) is January 1, 2022, through December 31, 2022. Interested parties are invited to comment on this preliminary determination.
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<title>Federal Register, Volume 89 Issue 63 (Monday, April 1, 2024)</title>
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[Federal Register Volume 89, Number 63 (Monday, April 1, 2024)]
[Notices]
[Pages 22383-22385]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-06844]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-560-843]
Frozen Warmwater Shrimp From Indonesia: Preliminary Negative
Countervailing Duty Determination, and Alignment of Final Determination
With the Final Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are not being provided to
producers and exporters of frozen warmwater shrimp (shrimp) from
Indonesia. The period of investigation (POI) is January 1, 2022,
through December 31, 2022. Interested parties are invited to comment on
this preliminary determination.
DATES: Applicable April 1, 2024.
FOR FURTHER INFORMATION CONTACT: Kelsie Hohenberger, AD/CVD Operations,
Office V, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2517.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). On November 21,
2023, Commerce published in the Federal Register the notice of
initiation of this investigation.\1\ On December 7, 2023, Commerce
postponed the preliminary determination until March 25, 2024.\2\
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\1\ See Frozen Warmwater Shrimp from Ecuador, India, Indonesia,
and the Socialist Republic of Vietnam: Initiation of Countervailing
Duty Investigations, 88 FR 81053 (November 21, 2023).
\2\ See Frozen Warmwater Shrimp from Ecuador, India, Indonesia,
and the Socialist Republic of Vietnam: Postponement of Preliminary
Determinations in the Countervailing Duty Investigations, 88 FR
85216 (December 7, 2023).
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For a complete description of events that followed the initiation
of this investigation, see the Preliminary Decision Memorandum.\3\ A
list of topics discussed in the Preliminary Decision Memorandum is
included as Appendix II 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="https://access.trade.gov">https://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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\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Negative Determination of the Countervailing Duty Investigation of
Frozen Warmwater Shrimp from Indonesia,'' dated concurrently with,
and hereby adopted by, this notice (Preliminary Decision
Memorandum).
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Scope of the Investigation
The product covered by this investigation is shrimp from Indonesia.
For a complete description of the scope of this investigation, see
Appendix I.
[[Page 22384]]
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ in
the Initiation Notice, Commerce set aside a period of time for parties
to raise issues regarding product coverage (i.e., scope).\5\ No
interested party commented on the scope of the investigation as it
appeared in the Initiate Notice.
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\4\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice, 88 FR at 81054.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each subsidy program found to be
countervailable, Commerce preliminarily 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.\6\ For a full description of the methodology underlying our
preliminary determination, see the Preliminary Decision Memorandum.
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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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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final countervailing duty (CVD) determination in this
investigation with the final determination in the concurrent
antidumping duty (AD) investigations of shrimp from Ecuador and
Indonesia, based on a request made by the petitioner.\7\ Consequently,
the final CVD determination will be issued on the same date as the
final AD determinations, which are currently scheduled to be issued no
later than August 5, 2024, unless postponed.
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\7\ See Petitioner's Letter, ``Request for Alignment,'' dated
February 22, 2024. The petitioner is the American Shrimp Processors
Association.
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Preliminary Determination
For this preliminary determination, Commerce calculated de minimis
estimated countervailable subsidies for each individually examined
producer/exporter of the subject merchandise. Consistent with section
703(b)(4)(A) of the Act, Commerce is disregarding the de minimis rates,
and we preliminarily determine that countervailable subsidies are not
being provided to producers/exporters of the subject merchandise in
Indonesia.
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy
rate
Company (percent ad
valorem)
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PT Bahari Makmur Sejati \8\................................ * 0.39
PT First Marine Seafoods \9\............................... * 0.71
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de minimis.
Consistent with section 703(d) of the Act, Commerce has not
calculated an estimated weighted-average subsidy rate for all other
producers and exporters because it has not made an affirmative
preliminary determination.
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\8\ As discussed in the Preliminary Decision Memorandum,
Commerce preliminarily determined that PT Bahari Makmur Sejati is
cross-owned with PT International Packaging Manufacturing and PT
Total Pack Indonesia.
\9\ As discussed in the Preliminary Decision Memorandum,
Commerce preliminarily determined that PT First Marine Seafoods is
cross-owned with PT Khom Foods.
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Suspension of Liquidation
Because Commerce preliminarily determines that countervailable
subsidies are not being provided to the production or exportation of
subject merchandise, Commerce will not direct U.S. Customs and Border
Protection to suspend liquidation of any such entries.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary 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 the Federal Register, in accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in the
case briefs, may be filed not later than five days after the date for
filing case briefs.\10\ Interested parties who submit case briefs or
rebuttal briefs in this proceeding must submit: (1) a table of contents
listing each issue; and (2) a table of authorities.\11\
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\10\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\11\ See 19 CFR 351.309(c)(2) and (d)(2).
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As provided in 19 CFR 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged interested parties to provide an
executive summary of their brief that should be limited to five pages
total, including footnotes. In this investigation, we instead request
that interested parties provide at the beginning of their briefs a
public, executive summary for each issue raised in their briefs.\12\
Further, we request that interested parties limit their executive
summary of each issue to no more than 450 words, not including
citations. We intend to use the executive summaries as the basis of the
comment summaries included in the issues and decision memorandum that
will accompany the final determination in this investigation. We
request that interested parties include footnotes for relevant
citations in the executive summary of each issue. Note that Commerce
has amended certain of its requirements pertaining to the service of
documents in 19 CFR 351.303(f).\13\
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\12\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\13\ See APO and Service Final Rule.
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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, within 30 days
after the date of publication of this notice. 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. Oral presentations at the hearing will
be limited to issues raised in the briefs. If a request for a hearing
is made, Commerce intends to hold the hearing at a time and date to be
determined.\14\ Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
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\14\ See 19 CFR 351.310(d).
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U.S. International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its determination. If
the final determination is affirmative, the ITC will determine 75 days
after the final determination whether imports of shrimp from Indonesia
are materially injuring, or threaten material injury to, the U.S.
industry.
[[Page 22385]]
Notification to Interested Parties
This determination is issued and published in accordance with
sections 703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: March 25, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The scope of this investigation includes certain frozen
warmwater shrimp and prawns whether wild-caught (ocean harvested) or
farm-raised (produced by aquaculture), head-on or head-off, shell-on
or peeled, tail-on or tail-off, deveined or not deveined, cooked or
raw, or otherwise processed in frozen form. ``Tails'' in this
context means the tail fan, which includes the telson and the
uropods.
The frozen warmwater shrimp and prawn products included in the
scope, regardless of definitions in the Harmonized Tariff Schedule
of the United States (HTSUS), are products which are processed from
warmwater shrimp and prawns through freezing and which are sold in
any count size.
The products described above may be processed from any species
of warmwater shrimp and prawns. Warmwater shrimp and prawns are
generally classified in, but are not limited to, the Penaeidae
family. Some examples of the farmed and wild-caught warmwater
species include, but are not limited to, whiteleg shrimp (Penaeus
vannemei), banana prawn (Penaeus merguiensis), fleshy prawn (Penaeus
chinensis), giant river prawn (Macrobrachium rosenbergii), giant
tiger prawn (Penaeus monodon), redspotted shrimp (Penaeus
brasiliensis), southern brown shrimp (Penaeus subtilis), southern
pink shrimp (Penaeus notialis), southern rough shrimp (Trachypenaeus
curvirostris), southern white shrimp (Penaeus schmitti), blue shrimp
(Penaeus stylirostris), western white shrimp (Penaeus occidentalis),
and Indian white prawn (Penaeus indicus).
Frozen shrimp and prawns that are packed with marinade, spices
or sauce are included in the scope. In addition, food preparations,
which are not ``prepared meals,'' that contain more than 20 percent
by weight of shrimp or prawn are also included in the scope.
Excluded from the scope are: (1) breaded shrimp and prawns
(HTSUS subheading 1605.21.1020); (2) shrimp and prawns generally
classified in the Pandalidae family and commonly referred to as
coldwater shrimp, in any state of processing; (3) fresh shrimp and
prawns whether shell-on or peeled (HTSUS subheadings 0306.36.0020
and 0306.36.0040); (4) shrimp and prawns in prepared meals (HTSUS
subheadings 1605.21.0500 and 1605.29.0500); (5) dried shrimp and
prawns; (6) canned warmwater shrimp and prawns (HTSUS subheading
1605.29.1040); and (7) certain battered shrimp. Battered shrimp is a
shrimp-based product: (1) that is produced from fresh (or thawed-
from-frozen) and peeled shrimp; (2) to which a ``dusting'' layer of
rice or wheat flour of at least 95 percent purity has been applied;
(3) with the entire surface of the shrimp flesh thoroughly and
evenly coated with the flour; (4) with the non-shrimp content of the
end product constituting between four and ten percent of the
product's total weight after being dusted, but prior to being
frozen; and (5) that is subjected to individually quick frozen (IQF)
freezing immediately after application of the dusting layer. When
dusted in accordance with the definition of dusting above, the
battered shrimp product is also coated with a wet viscous layer
containing egg and/or milk, and par-fried.
The products covered by the scope are currently classified under
the following HTSUS subheadings: 0306.17.0004, 0306.17.0005,
0306.17.0007, 0306.17.0008, 0306.17.0010, 0306.17.0011,
0306.17.0013, 0306.17.0014, 0306.17.0016, 0306.17.0017,
0306.17.0019, 0306.17.0020, 0306.17.0022, 0306.17.0023,
0306.17.0025, 0306.17.0026, 0306.17.0028, 0306.17.0029,
0306.17.0041, 0306.17.0042, 1605.21.1030, and 1605.29.1010. These
HTSUS subheadings are provided for convenience and for customs
purposes only and are not dispositive, but rather the written
description of the scope is dispositive.
Appendix II--List of Topics Discussed in the Preliminary Decision
Memorandum
I. Summary
II. Background
III. Scope Comments
IV Scope of the Investigation
V. Injury Test
VI. Subsidies Valuation
VII. Analysis of Programs
VIII. Recommendation
[FR Doc. 2024-06844 Filed 3-29-24; 8:45 am]
BILLING CODE 3510-DS-P
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