Notice2024-06844

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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Published
April 1, 2024

Issuing agencies

Commerce DepartmentInternational Trade Administration

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:

------------------------------------------------------------------------
                                                               Subsidy
                                                                 rate
                          Company                            (percent ad
                                                               valorem)
------------------------------------------------------------------------
PT Bahari Makmur Sejati \8\................................       * 0.39
PT First Marine Seafoods \9\...............................      * 0.71
------------------------------------------------------------------------
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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Indexed from Federal Register on April 1, 2024.

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