Notice2024-15981

Melamine From India: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, and Alignment of Final Determination With the Final Antidumping Duty Determination

Primary source

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Published
July 22, 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 melamine from India. The period of investigation (POI) is January 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination.

Full Text

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<title>Federal Register, Volume 89 Issue 140 (Monday, July 22, 2024)</title>
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[Federal Register Volume 89, Number 140 (Monday, July 22, 2024)]
[Notices]
[Pages 59055-59057]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-15981]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-925]


Melamine From India: Preliminary Affirmative Countervailing Duty 
Determination, Preliminary Affirmative Critical Circumstances 
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 melamine from India. The period of 
investigation (POI) is January 1, 2023, through December 31, 2023. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable July 22, 2024.

FOR FURTHER INFORMATION CONTACT: Paul Kebker or Dylan Hill, 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) 482-2254 or (202) 482-1197, 
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). Commerce 
published the notice of initiation of this investigation on March 11, 
2024.\1\ On April 18, 2024, Commerce postponed the preliminary 
determination in this investigation until July 15, 2024.\2\
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    \1\ See Melamine from Germany, India, Qatar, and Trinidad and 
Tobago: Initiation of Countervailing Duty Investigations, 89 FR 
17381 (March 11, 2024) (Initiation Notice).
    \2\ See Melamine from Germany, India, Qatar, and Trinidad and 
Tobago: Postponement of Preliminary Determinations in the 
Countervailing Duty Investigations, 89 FR 27714 (April 18, 2024).
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    For a complete description of the 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 in the Countervailing Duty Investigation 
of Melamine from India,'' 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 melamine from India. 
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\ the 
Initiation Notice 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).
    \5\ See Initiation Notice, 89 FR at 17381-82.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs 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\
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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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    In making its determination, Commerce relied, in part, on adverse 
facts available. For further information, see the ``Use of Adverse 
Facts Available'' section in the Preliminary Decision Memorandum.

Preliminary Affirmative Determination of Critical Circumstances

    In accordance with section 703(e)(1) of the Act, Commerce 
preliminarily determines that critical circumstances exist with respect 
to U.S. imports of subject merchandise from Gujarat State Fertilizers 
and Chemicals Limited (Gujarat Fertilizers) and all other exporters or 
producers not individually

[[Page 59056]]

examined. For a full description of the methodology and results of 
Commerce's analysis, see the ``Preliminary Determination of Critical 
Circumstances'' section in the Preliminary Decision Memorandum.

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 companion antidumping 
duty (AD) investigation of melamine from India 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 determination, which is 
currently scheduled to be issued no later than November 25, 2024, 
unless postponed.\8\
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    \7\ See Petitioner's Letter, ``Petitioner's Request to Align 
Countervailing Duty Investigation Final Determination with 
Antidumping Duty Investigation Final Determination,'' dated June 11, 
2024. The petitioner is Cornerstone Chemical Company.
    \8\ See Melamine From Germany, India, Japan, the Netherlands, 
Qatar, and Trinidad and Tobago: Postponement of Preliminary 
Determinations in the Less-Than-Fair-Value Investigations, 89 FR 
52437 (June 24, 2024).
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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 determined entirely under 
section 776 of the Act.
    In this investigation, Commerce calculated an individual estimated 
countervailable subsidy rate for Gujarat Fertilizers, the only 
individually examined exporter/producer in this investigation. Because 
the only individually calculated rate is not zero, de minimis, or 
determined entirely under section 776 of the Act, we have assigned the 
rate calculated for Gujarat Fertilizers to all other producers and 
exporters, pursuant to section 705(c)(5)(A)(i) of the Act.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exists:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
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Gujarat State Fertilizers and Chemicals Limited.........           17.09
All Others..............................................           17.09
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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 
Appendix I to this notice entered, or withdrawn from warehouse, for 
consumption on or after the date described below. Further, pursuant to 
19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit 
equal to the rate indicated in the table above.
    Section 703(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of: (a) 
the date which is 90 days before the date on which the suspension of 
liquidation was first ordered; or (b) the date on which notice of 
initiation of the investigation was published in the Federal Register. 
As noted above, Commerce preliminarily finds that critical 
circumstances exist for imports of subject merchandise produced and/or 
exported by Gujarat Fertilizers and all other producers and/or 
exporters not individually examined. In accordance with section 
703(e)(2)(A) of the Act, suspension of liquidation shall apply to 
unliquidated entries of subject merchandise from the exporters/
producers identified in this paragraph that were entered, or withdrawn 
from warehouse, for consumption on or after the date which is 90 days 
before the publication of this notice in the Federal Register.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed in this preliminary determination to parties to the 
proceeding within five days of public announcement of the 
determination, 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 351.244(b).
    Consistent with 19 CFR 351.224(e), Commerce will analyze and, if 
appropriate, correct any timely allegations of significant ministerial 
errors by amending the preliminary determination. However, consistent 
with 19 CFR 351.224(d), Commerce will not consider incomplete 
allegations that do not address the significance standard under 19 CFR 
351.224(g) following the preliminary determination. Instead, Commerce 
will address such allegations in the final determination together with 
issues raised in the case briefs or other written comments.

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 case 
briefs, may be filed not later than five days after the date for filing 
case briefs.\9\ 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.\10\
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    \9\ 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).
    \10\ See 19 CFR 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.\11\ 
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 for 
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).\12\
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    \11\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \12\ See APO and Service Final Rule.

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[[Page 59057]]

    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 in the Federal Register. 
Requests should contain the party's name, address, and telephone 
number, the number of participants from the party, 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. 
Parties should confirm by telephone the date, time, and location of the 
hearing two days before the scheduled hearing date.

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 preliminary 
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 melamine from India 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: July 15, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise subject to this investigations is melamine 
(Chemical Abstracts Service (CAS) registry number 108-78-01, 
molecular formula C3 H6 N6). Melamine is also known as 2,4,6-
triamino-s-triazine; 1,3,5-Triazine-2,4,6-triamine; Cyanurotriamide; 
Cyanurotriamine; Cyanuramide; and by various brand names. Melamine 
is a crystalline powder or granule. All melamine is covered by the 
scope of this investigation irrespective of purity, particle size, 
or physical form. Melamine that has been blended with other products 
is included within this scope when such blends include constituent 
parts that have been intermingled, but that have not been chemically 
reacted with each other to produce a different product. For such 
blends, only the melamine component of the mixture is covered by the 
scope of this investigation. Melamine that is otherwise subject to 
this investigation is not excluded when commingled with melamine 
from sources not subject to this investigation. Only the subject 
component of such commingled products is covered by the scope of 
this investigation.
    The subject merchandise is provided for in subheading 
2933.61.0000 of the Harmonized Tariff Schedule of the United States 
(HTSUS). Although the HTSUS subheading and CAS registry number are 
provided for convenience and customs purposes, the written 
description of the scope is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Injury Test
IV. Preliminary Determination of Critical Circumstances
V. Use of Adverse Facts Available (AFA)
VI. Subsidies Valuation
VII. Benchmarks
VIII. Diversification of India's Economy
IX. Analysis of Programs
X. Recommendation

[FR Doc. 2024-15981 Filed 7-19-24; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on July 22, 2024.

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