Notice2024-06949
Frozen Warmwater Shrimp From Ecuador: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With the Final Antidumping Duty Determination
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Published
April 2, 2024
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 frozen warmwater shrimp (shrimp) from Ecuador. The period of investigation (POI) is January 1, 2022, through December 31, 2022. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 89 Issue 64 (Tuesday, April 2, 2024)</title>
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[Federal Register Volume 89, Number 64 (Tuesday, April 2, 2024)]
[Notices]
[Pages 22666-22668]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-06949]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-331-806]
Frozen Warmwater Shrimp From Ecuador: Preliminary Affirmative
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 being provided to
producers and exporters of frozen warmwater shrimp (shrimp) from
Ecuador. 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 2, 2024.
FOR FURTHER INFORMATION CONTACT: Reginald Anadio or Zachary Shaykin,
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) 482-3166 or (202)
482-5377, respectively.
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) (Initiation
Notice).
\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
Affirmative Determination of the Countervailing Duty Investigation
of frozen warmwater shrimp from Ecuador,'' 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 Ecuador.
For a complete description of the scope of this investigation, see
Appendix I.
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 Initiation 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
[[Page 22667]]
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 determinations in the companion
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 to Alignment,'' dated
February 22, 2024. The petitioner is the American Shrimp Processors
Association.
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce preliminarily calculated total net
subsidy rates for Industrial Pesquera Santa Priscila S.A. (Santa
Priscila) and Sociedad Nacional de Galapagos C.A. (SONGA) that are not
zero, de minimis, or based entirely on the facts otherwise available.
Because Commerce calculated individual estimated countervailable
subsidy rates for Santa Priscila and SONGA that are not zero, de
minimis, or based entirely on the facts otherwise available, we have
preliminarily calculated the all-others rate using a simple average of
the individual estimated subsidy rates calculated for the examined
respondents.\8\
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\8\ When two respondents are under examination, Commerce
normally calculates (A) a weighted-average of the estimated subsidy
rates calculated for the examined respondents using each company's
proprietary U.S. sale quantities for the merchandise under
consideration; (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). We currently do not have on the record the
necessary publicly-ranged sales data to conduct the rate comparison
discussed above. Therefore, for purposes of the preliminary
determination, we calculated the all-others rate as the simple
average of the total net subsidy rates calculated for the two
mandatory respondents. We will solicit the necessary publicly-ranged
sales data after the issuance of the preliminary determination.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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\9\ As discussed in the Preliminary Decision Memorandum,
Commerce preliminarily determines Industrial Pesquera Santa Priscila
S.A. is cross-owned with Manesil S.A., Produmar S.A., Tropack S.A.,
and Egidiosa S.A.
\10\ As discussed in the Preliminary Decision Memorandum,
Commerce preliminarily determines Sociedad Nacional de Galapagos
C.A. is cross-owned with Naturisa S.A., Holding Sola & Sola
Solacciones S.A., and Empacadora Champmar S.A.
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Subsidy rate
Producer/exporter (percent ad
valorem)
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Industrial Pesquera Santa Priscila S.A.\9\.............. 13.41
Sociedad Nacional de Galapagos C.A.\10\................. 1.69
All Others.............................................. 7.55
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Suspension of Liquidation
In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
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 the publication of this
notice, 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.\11\ 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.\12\
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\11\ 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).
\12\ See 19 351.309(c)(2) and (d)(2).
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As provided under 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.\13\
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).\14\
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\13\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\14\ 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
[[Page 22668]]
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.\15\ Parties should
confirm by telephone the date, time, and location of the hearing two
days before the scheduled date.
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\15\ 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 before
the later of 120 days after the date of this preliminary determination
or 45 days after the final determination whether imports of aluminum
extrusions from Indonesia are materially injuring, or threaten material
injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to 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 1605.20.10.20); (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
subheading 1605.20.05.10); (5) dried shrimp and prawns; (6) canned
warmwater shrimp and prawns (HTSUS subheading 1605.20.10.40); (7)
certain dusted shrimp; and (8) certain battered shrimp. Dusted
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
nonshrimp content of the end product constituting between four and
10 percent of the product's total weight after being dusted, but
prior to being frozen; and (5) that is subjected to IQF freezing
immediately after application of the dusting layer. Battered shrimp
is a shrimp-based product that, when dusted in accordance with the
definition of dusting above, is 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
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Diversification of Ecuador's Economy
VI. Injury Test
VII. Subsidies Valuation
VIII. Benchmarks and Discount Rates
IX. Analysis of Programs
X. Recommendation
[FR Doc. 2024-06949 Filed 4-1-24; 8:45 am]
BILLING CODE 3510-DS-P
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