Notice2024-24957
Frozen Warmwater Shrimp From Ecuador: 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 Ecuador. 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 85506-85508]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-24957]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-331-806]
Frozen Warmwater Shrimp From Ecuador: 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 Ecuador. The period of
investigation (POI) is January 1, 2022, through December 31, 2022.
DATES: Applicable October 28, 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
On April 1, 2024, Commerce published its Preliminary Determination
in the Federal Register and invited interested parties to comment.\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 this final countervailing duty (CVD)
determination with the final antidumping duty (AD) determination of
frozen warmwater shrimp from Ecuador.\2\ On July 12 and September 26,
2024, Commerce issued its post-preliminary determinations.\3\ On July
22, 2024, Commerce tolled certain deadlines in this administrative
proceeding by seven days.\4\ The deadline for the final determination
is now October 21, 2024.
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\1\ See Frozen Warmwater Shrimp from Ecuador: Preliminary
Affirmative Countervailing Duty Determination, and Alignment of
Final Determination with the Final Antidumping Duty Determination,
89 FR 22379 (April 1, 2024) (Preliminary Determination), amended in
Frozen Warmwater Shrimp from Ecuador: Amended Preliminary
Determination of Countervailing Duty Investigation, 89 FR 31722
(April 25, 2024) (Amended Preliminary Determination).
\2\ Id., 89 FR at 22380.
\3\ See Memoranda, ``Countervailing Duty Investigation of Frozen
Warmwater Shrimp from Ecuador: Post-Preliminary Analysis,'' dated
July 12, 2024 (First Post-Preliminary Determination); and
``Countervailing Duty Investigation of Frozen Warmwater Shrimp from
Ecuador: Second Post-Preliminary Determination Calculations for
Sociedad Nacional de Galapagos C.A.,'' dated September 26, 2024
(Second Post-Preliminary Determination).
\4\ 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.\5\
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="http://access.trade.gov">http://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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\5\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Frozen Warmwater Shrimp from Ecuador,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is frozen freshwater
shrimp from Ecuador. For a complete description 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)(1) of the Act, in July 2024, Commerce
conducted verification of the subsidy information reported by
Industrial Pesquera Santa Priscila S.A. (Santa Priscila), Sociedad
Nacional de Gal[aacute]pagos C.A. (SONGA), and the Government of
Ecuador (GOE) for use in our final determination. We used standard
verification procedures, including an examination of relevant
accounting records and original source documents provided by Santa
Priscila, SONGA, and the GOE.\6\
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\6\ See Memoranda, ``Countervailing Duty Investigation of Frozen
Warmwater Shrimp from Ecuador: Verification of the Questionnaire
Responses of Sociedad Nacional de Gal[aacute]pagos C.A.,'' dated
August 13, 2024; ``Countervailing Duty Investigation of Frozen
Warmwater Shrimp from Ecuador: Verification of the Questionnaire
Responses of Industrial Pesquera Santa Priscila S.A.,'' dated August
22, 2024; and ``Countervailing Duty Investigation of Frozen
Warmwater Shrimp from Ecuador: Verification of the Questionnaire
Responses of the Government of Ecuador,'' dated September 3, 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.\7\ For a full
description of the methodology underlying our final determination, see
the Issues and 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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In making this final determination, Commerce relied, in part, on
facts
[[Page 85507]]
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,\8\ First Post-Preliminary Determination and Second Post-
Preliminary Determination,\9\ and the Issues and Decision Memorandum
section entitled ``Use of Facts Otherwise Available and Application of
Adverse Inferences.''
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\8\ See Preliminary Determination and Amended Preliminary
Determination.
\9\ See First Post-Preliminary Determination and Second Post-
Preliminary Determination.
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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 certain changes
to the subsidy rate calculations for both Santa Priscila and SONGA.\10\
For a discussion of these changes, see the Issues and Decision
Memorandum.
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\10\ See Memorandum, ``Final Determination Calculations for
Santa Priscila,'' dated concurrently with this notice, and
Memorandum, ``Final Determination Calculations for SONGA,'' dated
concurrently with this notice.
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All-Others Rate
In accordance with section 705(c)(1)(B)(i) of the Act, we
calculated an individual estimated countervailable subsidy rates for
the mandatory respondents, Santa Priscila and SONGA. 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
subsidy rates that are zero, de minimis, or determined entirely under
section 776 of the Act.
In this investigation, we calculated individual total net
countervailable subsidy rates for both Santa Priscila and SONGA that
are not zero, de minimis, or based entirely on facts otherwise
available. Therefore, we calculated the all-others rate using a
weighted average of the individual estimated subsidy rates calculated
for the examined respondents (Santa Priscila and SONGA) using each
company's publicly-ranged sales value for their exports to the United
States of subject merchandise,\11\ in accordance with section
705(c)(5)(A)(i) of the Act.
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\11\ 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 countervailable
subsidy rates exist:
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Subsidy rate
Company (percent ad
valorem)
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Industrial Pesquera Santa Priscila S.A.............. 3.57
Sociedad Nacional de Gal[aacute]pagos C.A........... 4.41
All Others.......................................... 3.78
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Disclosure
We intend 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, Commerce instructed U.S.
Customs and Border Protection (CBP) to collect cash deposits and
suspend liquidation of entries of subject merchandise from Ecuador that
were entered, or withdrawn from warehouse, for consumption on 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 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.
U.S. International Trade Commission 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
Ecuador. 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 material injury, by reason of
imports of shrimp from Ecuador 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
[[Page 85508]]
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 Orders
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 1605.20.10.20); (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
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Diversification of Ecuador's Economy
V. Subsidies Valuation
VI. Use of Facts Otherwise Available and Application of Adverse
Inferences
VII. Analysis of Programs
VIII. Discussion of the Issues
Comment 1: Commerce Should Countervail the Provision of Brackish
Water
Comment 2: Commerce Should Countervail the Provision of Fuel
Comment 3: Commerce Should Revise the Benchmark Used To Value
the Provision of Electricity
Comment 4: Commerce Should Correct the Multiplier Used for
Programs Benefitting Respondents' Shrimp Suppliers
Comment 5: Commerce Should Apply Adverse Facts Available (AFA)
To Countervail Unverifiable and Omitted Income Tax Programs
Comment 6: Commerce Should Revise the Denominator for the
Investment Contract/Tax Incentives for Priority Sectors Under the
2010 Organic Production Code for Santa Priscila
Comment 7: Commerce Should Make Certain Revisions to SONGA's
Subsidy Calculations
Comment 8: Commerce Should Make Certain Revisions to Santa
Priscila's Subsidy Calculations
Comment 9: Commerce Should Revise Its Countervailable Subsidy
Calculation Regarding Provision of Land Concessions
Comment 10: Commerce Should Find That Certain Tax Programs are
not Countervailable
Comment 11: Commerce Should Revise its Attribution of Benefits
Received by Cross-Owned Input Suppliers to Santa Priscila
Comment 12: Commerce Should Recalculate Its Countervailable
Subsidy Calculation for SONGA Under the Refund of Currency Outflow
Tax (ISD) On Inputs Program
Comment 13: Section 771B Is Not Supported by the Record
Comment 14: Commerce Should Adjust the Cash Deposit (CD) Rates
Comment 15: Commerce's Should Reverse Its Rejection of SONGA's
Minor Correction
Comment 16: Commerce Should Correct its Application of AFA to
SONGA and Naturisa, and Santa Priscila and Produmar Under the Motor
Vehicle Tax Reduction Program
IX. Recommendation
[FR Doc. 2024-24957 Filed 10-25-24; 8:45 am]
BILLING CODE 3510-DS-P
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