Notice2024-24952
Frozen Warmwater Shrimp From India: Final Affirmative Countervailing Duty Determination
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 28, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of frozen warmwater shrimp (shrimp) from India. The period of investigation (POI) is April 1, 2022, through March 31, 2023.
Full Text
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<title>Federal Register, Volume 89 Issue 208 (Monday, October 28, 2024)</title>
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[Federal Register Volume 89, Number 208 (Monday, October 28, 2024)]
[Notices]
[Pages 85502-85505]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-24952]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-921]
Frozen Warmwater Shrimp From India: Final Affirmative
Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of frozen warmwater shrimp (shrimp) from India. The period of
investigation (POI) is April 1, 2022, through March 31, 2023.
DATES: Applicable October 28, 2024.
FOR FURTHER INFORMATION CONTACT: Benjamin Nathan, AD/CVD Operations,
Office II, Enforcement and Compliance,
[[Page 85503]]
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
3834.
SUPPLEMENTARY INFORMATION:
Background
On April 1, 2024, Commerce published the Preliminary Determination
in the Federal Register.\1\ In the Preliminary Determination, and in
accordance with section 705(a)(1) of the Tariff Act of 1930, as amended
(the Act), and 19 CFR 351.210(b)(4), Commerce aligned the final
countervailing duty (CVD) determination with the final antidumping duty
determination.\2\ Commerce invited parties to comment on the
Preliminary Determination.\3\ On July 19, 2024, Commerce released its
Post-Preliminary Decision.\4\ On July 22, 2024, Commerce tolled certain
deadlines in this administrative proceeding by seven days.\5\ The
deadline for the final determination is now October 21, 2024.
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\1\ See Frozen Warmwater Shrimp from India: Preliminary
Affirmative Determination of Countervailable Subsidies, and
Alignment of Final Determination With the Final Antidumping Duty
Determination, 89 FR 22386 (April 1, 2024) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ See Preliminary Determination, 89 FR at 22386.
\3\ Id.
\4\ See Memorandum, ``Post Preliminary Analysis,'' dated July
19, 2024.
\5\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated July 22, 2024.
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For a complete description of the events that followed the
Preliminary Determination, see the Issues and Decision Memorandum.\6\
The Issues and 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 Issues and 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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\6\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Frozen Warmwater Shrimp from India,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are shrimp from India.
For a complete description of the scope of the investigation, see
appendix I.
Scope Comments
We received no comments from interested parties on the scope of the
investigation as it appeared in the Preliminary Determination.
Therefore, we made no changes to the scope of the investigation.
Verification
As provided in section 782(i) of the Act, in July and August 2024,
Commerce verified all information reported by Devi Sea Foods Limited
(Devi), Sandhya Aqua Exports Private Limited (Sandhya), and the
Government of India (GOI). We used standard verification procedures,
including an examination of relevant account records and original
source documents provided by the respondents.\7\
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\7\ See Memoranda, ``Verification of the Questionnaire Responses
of the Government of India,'' dated August 29, 2024; ``Verification
of the Questionnaire Responses of Devi Seafoods Private Limited,''
dated August 29, 2024; and ``Verification of the Questionnaire
Responses of Sandhya Aqua Exports Private Limited.,'' dated August
29, 2024.
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs by parties in this investigation, are
discussed in the Issues and Decision Memorandum. For a list of the
issues raised by parties, and to which we responded in the Issues and
Decision Memorandum, see Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Act. For each of the subsidy programs found to be
countervailable, Commerce 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.\8\ For a full
description of the methodology underlying our final determination, see
the Issues and Decision Memorandum.
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\8\ 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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Changes Since the Preliminary Determination
Based on our review and analysis of the information received during
verification and comments received from parties, for this final
determination, we made certain changes to the countervailable subsidy
rate calculations for Devi, Sandhya, and for all other producers/
exporters. For a discussion of these changes, see the Issues and
Decision Memorandum.
All-Others Rate
In accordance with section 705(c)(1)(B)(i) of the Act, we
calculated an individual estimated countervailable subsidy rate for the
two mandatory respondents, Devi and Sandhya. Section 705(c)(5)(A)(i) of
the Act states that, for companies not individually investigated,
Commerce will determine an all-others rate equal to the weighted-
average countervailable subsidy rates established for exporters and/or
producers individually investigated, excluding any zero and de minimis
countervailable subsidy rates, and any rates determined entirely under
section 776 of the Act.
In this investigation, we continue to calculate individual total
net countervailable subsidy rates for Devi and Sandhya that are not
zero, de minimis, or based entirely on facts otherwise available. We,
therefore, continue to calculate the all-others rate using a weighted
average of the individual estimated subsidy rates calculated for the
examined respondents (Devi and Sandhya) using each company's publicly-
ranged sales value for their exports to the United States of subject
merchandise,\9\ in accordance with section 705(c)(5)(A)(i) of the Act.
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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
Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010); see also Forged Steel Fluid End Blocks from
Italy: Preliminary Affirmative Countervailing Duty Determination,
and Alignment of Final Determination with Final Antidumping Duty
Determination, 85 FR 31460, 31461 (May 26, 2020), unchanged in
Forged Steel Fluid End Blocks from Italy: Final Affirmative
Countervailing Duty Determination, 85 80022, 80023 (December 11,
2020).
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Final Determination
Commerce determines that the following estimated net
countervailable subsidy rates exist for the period April 1, 2022,
through March 31, 2023:
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Subsidy rate
Company (percent ad
valorem)
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Devi Sea Foods Limited \10\............................. 5.87
Sandhya Aqua Exports Private Limited \11\............... 5.63
[[Page 85504]]
All Others.............................................. 5.77
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Disclosure
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\10\ Commerce continues to determine that Devi is cross owned
with Devi Sea Foods Inc, Devee Horizon LLP, Devee Power Corporation
Limited, and Devee Superior Feeds Limited. See Preliminary
Determination PDM at 9; see also Memorandum, ``Post-Preliminary
Analysis,'' dated July 19, 2024, at 5-6.
\11\ Commerce continues to determine that Sandhya is cross owned
with Neeli Sea Foods Private Limited, Vijay Aqua Processors Private
Limited, and Neeli Aqua Farms. See Preliminary Determination PDM at
9.
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Commerce intends to disclose its calculations performed to
interested parties in this final 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 the Federal
Register, in accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to collect cash deposits and
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 April 1, 2024, the date of
publication of the Preliminary Determination in the Federal Register.
In accordance with section 703(d) of the Act, we instructed CBP to
discontinue the suspension of liquidation of all entries of subject
merchandise entered or withdrawn from warehouse, on or after July 30,
2024, but to continue the suspension of liquidation of all entries of
subject merchandise on or before July 29, 2024.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order, reinstate the suspension of liquidation under section 706(a) of
the Act, and require a cash deposit of estimated countervailing duties
for such entries of subject merchandise in the amounts indicated above.
Pursuant to section 705(c)(2) of the Act, if the ITC determines that
material injury, or threat of material injury, does not exist, this
proceeding will be terminated, and all estimated duties deposited or
securities posted as a result of the suspension of liquidation will be
refunded or cancelled.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of shrimp from
India. As Commerce's final determination is affirmative, in accordance
with section 705(b) of the Act, the ITC will determine, within 45 days,
whether the domestic industry in the United States is materially
injured, or threated with material injury, by reason of import of
shrimp from India. In addition, we are making available to the ITC all
non-privileged and non-proprietary information in our files, provided
the ITC confirms that it will not disclose such information, either
publicly or under administrative protective order (APO), without the
written consent of the Assistant Secretary for Enforcement and
Compliance.
If the ITC determines that material injury or threat of material
injury does not exist, this proceeding will be terminated and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a countervailing duty order directing CBP to
assess, upon further instruction by Commerce, countervailing duties on
all imports of the subject merchandise that are entered, or withdrawn,
for consumption on or after the effective date of the suspension of
liquidation, as discussed above in the ``Continuation of Suspension of
Liquidation'' section.
Administrative Protective Order
This notice will serve as the only reminder to parties subject to
the APO of their responsibility concerning the destruction of
proprietary information disclosed under APO, in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: October 21, 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 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
[[Page 85505]]
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
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Use of Facts Available
IV. Subsidies Valuation
V. Analysis of Cross-Ownership
VI. Changes Since the Preliminary Determination
VII. Analysis of Programs
VIII. Discussion of the Issues
Comment 1: Whether Commerce Erred in Its Export Promotion of
Capital Goods Scheme (EPCGS) Calculation for Sandhya
Comment 2: Whether Commerce Erred in its Productivity-Linked
Incentive (PLI) Calculation
Comment 3: Whether Commerce Erred in its Calculation of The
Andhra Pradesh Power Subsidy for Aquaculture Farmers (PSA)
Comment 4: Whether Commerce Erred in Calculating the Grants for
Food Processing
Comment 5: Whether Commerce Erred in Calculating the Pre-
Shipment and Post-Shipment Export Financing Programs (EFPPS, EF2,
and EF3)
Comment 6: Whether the EFPPS Program is Countervailable
Comment 7: Whether Section 771b of the Act is Applicable to this
Investigation
Comment 8: Whether the Duty Drawback Program (DDB) is
Countervailable
Comment 9: Whether the Remission of Duties and Taxes on Export
Products (RoDTEP) is Countervailable
Comment 10: Whether Neeli Sea Foods Private Limited (Neeli)
Received Any Export Financing (EFPPS, EF2, or EF3) Benefit During
the POI
IX. Recommendation
[FR Doc. 2024-24952 Filed 10-25-24; 8:45 am]
BILLING CODE 3510-DS-P
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