Notice2024-24955
Frozen Warmwater Shrimp From the Socialist Republic of Vietnam: Final Affirmative Countervailing Duty Determination
Primary source
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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 the Socialist Republic of Vietnam (Vietnam). The period of investigation (POI) is January 1, 2022, through December 31, 2022.
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 85500-85502]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-24955]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-552-838]
Frozen Warmwater Shrimp From the Socialist Republic of Vietnam:
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 the Socialist Republic of
Vietnam (Vietnam). The period of investigation (POI) is January 1,
2022, through December 31, 2022.
DATES: Applicable October 28, 2024.
FOR FURTHER INFORMATION CONTACT: Adam Simons, AD/CVD Operations, Office
IX, Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482-6172.
SUPPLEMENTARY INFORMATION:
Background
On April 1, 2024, Commerce published its Preliminary Determination
in the Federal Register and invited interested parties to comment.\1\
On July 22, 2024, Commerce tolled certain deadlines in this
administrative proceeding by seven days.\2\ The deadline for the final
determination is now October 21, 2024. For a complete discussion of the
events that followed the Preliminary Determination, see the Issues and
Decision Memorandum.\3\
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\1\ See Frozen Warmwater Shrimp from the Socialist Republic of
Vietnam: Preliminary Affirmative Countervailing Duty Determination,
and Alignment of Final Determination with Final Antidumping Duty
Determination, 89 FR 22374 (April 1, 2024) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated July 22, 2024.
\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination of the Countervailing Duty Investigation of
Frozen Warmwater Shrimp from the Socialist Republic of Vietnam,''
dated concurrently with, and hereby adopted by, this notice (Issues
and Decision Memorandum).
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The Issues and Decision Memorandum is a public document and is made
available to the public 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>.
Scope of the Investigation
The merchandise covered by the scope of this investigation is
shrimp from Vietnam. For a complete description of the scope of this
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 Tariff Act of 1930, as amended
(the Act), in May and June, 2024, Commerce conducted verification of
the subsidy information reported by the Government of Vietnam (GOV),
Soc Trang Seafood
[[Page 85501]]
Joint Stock Company (STAPIMEX), and STAPIMEX's supplier Giang Hong
Phuong for use in our final determination. We used standard
verification procedures, including an examination of relevant
accounting records and original source documents provided by STAPIMEX,
Giang Hong Phuong, and the GOV.\4\
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\4\ See Memoranda, ``Verification of Soc Trang Seafood Joint
Stock Company,'' dated August 14, 2024; ``Verification of the
Government of the Socialist Republic of Vietnam,'' dated August 29,
2024; and ``Verification of Giang Hong Phuong,'' dated July 31,
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 that were submitted by interested parties
in this investigation are discussed in the Issues and Decision
Memorandum. For a list of the issues raised by interested parties and
addressed 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.\5\ For a full
description of the methodology underlying our final determination, see
the Issues and Decision Memorandum.
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\5\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; see also section 771(5)(E) of the Act
regarding benefit; and section 771(5A) of the Act regarding
specificity.
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In making this final determination, Commerce relied, in part, on
facts otherwise available, including with an adverse inference,
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of adverse facts available (AFA), see the
Preliminary Determination,\6\ and the Issues and Decision Memorandum at
the section entitled ``Uses of Facts Available and Application of
Adverse Inferences.''
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\6\ See Preliminary Determination PDM at 6-15.
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Changes Since the Preliminary Determination
Based on our review and analysis of the information at verification
and comments received from interested parties, we made changes to the
subsidy rate calculations for Thong Thuan Company Limited to include
the subsidy programs included in the Post-Preliminary Analysis Memo.\7\
For a discussion of these changes, see the Issues and Decision
Memorandum.
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\7\ See Memorandum, ``Post-Preliminary Analysis in the
Countervailing Duty Investigation of Frozen Warmwater Shrimp from
the Socialist Republic of Vietnam,'' dated May 23, 2024; see also
Issues and Decision Memorandum at Appendix for the revised AFA rate
calculation.
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All-Others Rate
Pursuant to section 705(c)(5)(A)(i) of the Act, 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. We continue to assign a rate based entirely on
facts available to Thong Thuan Company Limited. Therefore, the only
rate that that is not zero, de minimis, or based entirely on facts
otherwise available is the rate calculated for STAPIMEX. Consequently,
we continue to assign the rate calculated for STAPIMEX as the rate for
all other producers and exporters, pursuant to section 705(c)(5)(A)(i)
of the Act.
Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist for the period January 1, 2022, through December
31, 2022:
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Subsidy rate
Company (percent ad
valorem)
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Soc Trang Seafood Joint Stock Company............... 2.84
Thong Thuan Company Limited......................... * 221.82
All Others.......................................... 2.84
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* Rate based on AFA.
Disclosure
Commerce intends to disclose to interested parties the calculations
and analysis performed in this final determination within five days of
any public announcement or, if there is no public announcement, within
five days of the date of publication of this notice 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, we instructed U.S. Customs
and Border Protection (CBP) to collect cash deposits and suspend
liquidation of entries of subject merchandise from Vietnam that were
entered, or withdrawn from warehouse, for consumption, on or after
April 1, 2024, the date of the publication of the Preliminary
Determination in the Federal Register.\8\ 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.
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\8\ See Preliminary Determination, 89 FR at 22374.
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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 entries of subject merchandise in the amounts indicated above. 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, we will notify the
ITC of our final affirmative determination that countervailable
subsidies are being provided to producers and exporters of shrimp from
Vietnam. Because the final determination is affirmative, in accordance
with section 705(b) of the Act, the ITC will make its final
determination as to whether the domestic industry in the United States
is materially injured, or threatened with
[[Page 85502]]
material injury, by reason of imports of shrimp from Vietnam no later
than 45 days after our final determination. In addition, we are making
available to the ITC all non-privileged and nonproprietary information
related to this investigation. We will allow the ITC access to all
privileged and business proprietary information in our files, provided
the ITC confirms that it will not disclose such information, either
publicly or under an 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
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an 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 in accordance with
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 1605.21.1020); (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 Issues and Decision Memorandum
I. Summary
II. Background
III. Subsidies Valuation
IV. Use of Facts Available and Adverse Inferences
V. Benchmarks
VI. Analysis of Programs
VII. Discussion of the Issues
Comment 1: Whether the Accelerated Depreciation and Increase of
Deductible Expense Program is Specific
Comment 2: Whether to Countervail Lending Programs Deferred at
the Preliminary Determination
Comment 3: Whether to Apply AFA to Water in the Provision of
Utilities at Reduced Rates in Industrial and Export Processing Zones
Program
Comment 4: Whether to Select an Alternative Land for Less Than
Adequate Remuneration (LTAR) Benchmark
Comment 5: Whether to Reconsider the Countervailability of the
Import Duty Exemptions for Imports Used to Produce Exported Goods
Program
Comment 6: Whether to Continue to Find Certain Programs Not
Countervailable
Comment 7: Whether Commerce Should Implement Section 771B of the
Act
VIII. Recommendation
[FR Doc. 2024-24955 Filed 10-25-24; 8:45 am]
BILLING CODE 3510-DS-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.