Notice2024-07071
Certain Corrosion Inhibitors From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review and Rescission of Review, in Part; 2022
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Published
April 3, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily finds that countervailable subsidies were provided to producers and exporters of corrosion inhibitors from the People's Republic of China (China), during the period of review (POR) from January 1, 2022, through December 31, 2022. In addition, Commerce is rescinding the review, in part, with respect to 16 companies. Interested parties are invited to comment on these preliminary results.
Full Text
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<title>Federal Register, Volume 89 Issue 65 (Wednesday, April 3, 2024)</title>
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[Federal Register Volume 89, Number 65 (Wednesday, April 3, 2024)]
[Notices]
[Pages 23001-23003]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-07071]
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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; 2022
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily finds
that countervailable subsidies were provided to producers and exporters
of corrosion inhibitors from the People's Republic of China (China),
during the period of review (POR) from January 1, 2022, through
December 31, 2022. In addition, Commerce is rescinding the review, in
part, with respect to 16 companies. Interested parties are invited to
comment on these preliminary results.
DATES: Applicable April 3, 2024.
FOR FURTHER INFORMATION CONTACT: Ted Pearson or Suresh Maniam, AD/CVD
Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2631 and (202) 482-1603,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On March 19, 2021, Commerce published in the Federal Register the
countervailing duty order on corrosion inhibitors from China.\1\ On May
9, 2023, Commerce published in the Federal Register the notice of
initiation of an administrative review of the Order.\2\ On June 23,
2023, Commerce selected Anhui Trust Chem Co., Ltd. (ATC) and Nantong
Botao Chemical Co., Ltd. (Botao) for individual examination as the
mandatory respondents in this administrative review.\3\ On October 30,
2023, Commerce extended the deadline for the preliminary results of
review until March 28, 2024.\4\
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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, 88 FR 29881 (May 9, 2023).
\3\ See Memorandum, ``Respondent Selection,'' dated June 23,
2023.
\4\ See Memorandum, ``Extension of Deadline for Preliminary
Results of Countervailing Duty Administrative Review,'' dated
October 30, 2023.
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For a complete description of the events that followed the
initiation of this 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 Recission
of Review in Part; 2022: 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 products covered by the Order are corrosion inhibitors. For a
complete description of the scope of the Order, see the Preliminary
Decision Memorandum.\6\
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\6\ Id.
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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 subsidy program found countervailable, we preliminarily
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).\7\ For a full description of the methodology
underlying our conclusions, including our reliance, in part, on adverse
facts available pursuant to sections 776(a) and (b) of the Act, see the
Preliminary Decision Memorandum.
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\7\ 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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[[Page 23002]]
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 timely-filed
withdrawal requests with respect to 16 companies, pursuant to 19 CFR
351.213(d)(1).\8\ Because the withdrawal requests were 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
review of the Order with respect to these 16 companies. For a complete
list of companies, see Appendix II to this notice.
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\8\ See Preliminary Decision Memorandum at ``Partial Rescission
of Administrative Review.''
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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.
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 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.\9\ 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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\9\ 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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Preliminary Results of Review
Commerce preliminarily determines that the following net
countervailable subsidy rates exist for the period January 1, 2022,
through December 31, 2022:
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\10\ 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.
\11\ 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.
\12\ Formerly known as Nantong Kanghua Chemical Co., Ltd. See
Certain Corrosion Inhibitors from the People's Republic of China:
Notice of Final Results of Antidumping Duty Changed Circumstances
Review, 88 FR 1357 (January 10, 2023).
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Subsidy
rate
Company (percent
ad valorem)
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Anhui Trust Chem Co., Ltd.\10\............................. 19.64
Nantong Botao Chemical Co., Ltd.\11\....................... 17.02
Gold Chemical Limited...................................... 18.90
Jiangyin Delian Chemical Co., Ltd.......................... 18.90
Kanghua Chemical Co., Ltd.\12\............................. 18.90
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Disclosure and Public Comment
We intend to disclose the calculations performed for these
preliminary results to interested parties within five days after the
date of publication of this notice.\13\ Pursuant to 19 CFR 351.309(c),
interested parties may submit case briefs to Commerce no later than 30
days after the date of publication of these preliminary results of
review.\14\ 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.\15\ 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.\16\
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\13\ See 19 CFR 351.224(b).
\14\ See 19 CFR 351.309(c)(1)(ii).
\15\ 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).
\16\ 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 review, we instead request that
interested parties provide at the beginning of their briefs a public,
executive summary for each issue raised in their briefs.\17\ 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 results in this administrative review. 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).\18\
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\17\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\18\ 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 must submit a written request to the Assistant
Secretary for Enforcement and Compliance, filed electronically via
ACCESS. Requests should contain: (1) the party's name, address, and
telephone number; (2) the number of participants; and (3) a list of
issues to be discussed. Issues raised in the hearing will be limited to
those raised in the respective case briefs. An electronically filed
hearing request must be received successfully in its entirety by
Commerce's electronic records system, ACCESS, by 5 p.m. Eastern Time
within 30 days after the date of publication of this notice.
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)(1).
[[Page 23003]]
Assessment Rates
In accordance with section 751(a)(2)(C) of the Act and 19 CFR
351.221(b)(4)(i), we preliminarily determined subsidy rates in the
amounts shown above for the producers/exporters shown above. Upon
completion of the administrative review, consistent with section
751(a)(1) of the Act and 19 CFR 351.212(b)(2), Commerce shall
determine, and CBP shall assess, countervailing duties on all
appropriate entries covered by this review.
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 January
1, 2021, through December 31, 2021, in accordance with 19 CFR
351.212(c)(l)(i). For the companies remaining in the 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).
Cash Deposit Requirements
In accordance with section 751(a)(2)(C) of the Act, Commerce also
intends upon publication of the final results, to instruct U.S. Customs
and Border Protection (CBP) to collect cash deposits of the estimated
countervailing duties in the amounts calculated in the final results of
this review for the respective companies listed above with regard to
shipments of subject merchandise entered, or withdrawn from warehouse,
for consumption on or after the date of publication of the final
results of this 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.
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 28, 2024.
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 Faces 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. Alfa Aesar China Chemical Co., Ltd.
2. Focus Chemical B.V.
3. Haruno Sangyo Kaisha, Ltd.
4. Johoku Chemical Co., Ltd.
5. KD Finechem Co., Ltd.
6. New Essential Corp.
7. Sagar Speciality Chemicals Pvt., Ltd.
8. Shanghai Sunwise Chemical Co., Ltd.
9. Sinochem Pharmaceutical Co., Ltd.
10. Tianjin Jinbin International Trade
11. TotalEnergies Lubrifiants
12. Vcare Medicines
13. Wuxi Base International Trade Co., Ltd.
14. Xiamen Amity Industry & Trade Co., Ltd.
15. Yasho Industries Pvt. Ltd.
16. Zaozhuang Kerui Chemicals Co., Ltd.
[FR Doc. 2024-07071 Filed 4-2-24; 8:45 am]
BILLING CODE 3510-DS-P
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