Notice2025-02548
Melamine From India: Final Affirmative Countervailing Duty Determination and Critical Circumstances 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
February 12, 2025
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 melamine from India. This investigation covers one mandatory respondent, Gujarat State Fertilizers and Chemicals Limited (Gujarat Fertilizers), and the period (POI) January 1, 2023, through December 31, 2023.
Full Text
<html>
<head>
<title>Federal Register, Volume 90 Issue 28 (Wednesday, February 12, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 28 (Wednesday, February 12, 2025)]
[Notices]
[Pages 9413-9415]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-02548]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-925]
Melamine From India: Final Affirmative Countervailing Duty
Determination and Critical Circumstances 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 melamine from India. This investigation covers one mandatory
respondent, Gujarat State Fertilizers and Chemicals Limited (Gujarat
Fertilizers), and the period (POI) January 1, 2023, through December
31, 2023.
DATES: Applicable February 12, 2025.
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
On July 22, 2024, Commerce published in the Federal Register its
Preliminary Determination in the countervailing duty (CVD)
investigation of melamine from India.\1\ Also on July 22, 2024,
Commerce tolled certain deadlines in this investigation by seven
days.\2\ On October 16, 2024, Commerce issued its post-preliminary
determination regarding new subsidy allegations.\3\
---------------------------------------------------------------------------
\1\ See Melamine from India: Preliminary Affirmative
Countervailing Duty Determination, Preliminary Affirmative Critical
Circumstances Determination, and Alignment of Final Determination
with the Final Antidumping Duty Determination, 89 FR 59055 (July 22,
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, ``Post-Preliminary Decision Memorandum,''
dated October 16, 2024 (Post-Preliminary Memorandum).
---------------------------------------------------------------------------
Because Commerce aligned the deadline for this final determination
with the deadline for the final determination in the less-than-fair-
value (LTFV) investigation of melamine from India, the deadline for the
final determination is now February 6, 2025.\4\
---------------------------------------------------------------------------
\4\ See Preliminary Determination, 89 FR at 59056; see also
Melamine from India: Postponement of Final Determination of Sales at
Less Than Fair Value Investigation, 89 FR 84533 (October 23, 2024).
---------------------------------------------------------------------------
For a complete description of the events that occurred after
Commerce issued the Preliminary Determination, see the Issues and
Decision Memorandum.\5\ The Issues and Decision Memorandum is a public
document that is on file electronically via Enforcement and
Compliance's Antidumping and Countervailing Duty Centralized Electronic
Service System (ACCESS).
[[Page 9414]]
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>.
---------------------------------------------------------------------------
\5\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Melamine from India,'' dated concurrently with, and
hereby adopted by, this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The product covered by this investigation is melamine from India.
For a complete description of the scope of the investigation, see
Appendix I to this notice.
Scope Comments
We received no comments from interested parties on the scope of the
investigation as it appeared in the Preliminary Determination.\6\
Therefore, we made no changes to the scope of the investigation.
---------------------------------------------------------------------------
\6\ See Preliminary Determination, 89 FR at 59055 and Appendix
I.
---------------------------------------------------------------------------
Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(the Act), in October 2024, Commerce conducted a verification of the
information reported by Gujarat Fertilizers and the Government of India
(GOI). As explained in the accompanying Issues and Decision Memorandum,
Commerce was not able to verify the information provided by Gujarat
Fertilizers due to its lack of cooperation at verification. Commerce
was able to complete its verification of the GOI. Commerce used
standard verification procedures, including an examination of relevant
documents provided at verification, in conducting its verification of
the GOI.
Analysis of Subsidy Programs and Comments Received
We have discussed the subsidy programs under investigation, and
addressed the issues raised in interested parties' case and rebuttal
briefs in the Issues and Decision Memorandum. For a list of the issues
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 has determined that the program provides a
subsidy, i.e., Commerce found that there was a financial contribution
by an ``authority,'' the financial contribution provided a benefit to
the recipient, and the subsidy is specific.\7\ In making this
determination, Commerce relied on total adverse facts available (AFA)
with respect to Gujarat Fertilizers based on its lack of cooperation at
verification and partial AFA with respect to the GOI because it did not
act to the best of its ability to respond to Commerce's requests for
information.\8\ For a full description of the methodology underlying
this final determination, including Commerce's application of AFA, see
the Issues and Decision Memorandum.
---------------------------------------------------------------------------
\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.
\8\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------
Final Affirmative Determination of Critical Circumstances
In accordance with sections 705(a)(2), and 776(a) and (b) of the
Act, and 19 CFR 351.206,\9\ Commerce continues to find that critical
circumstances exist with respect to imports of melamine from Gujarat
Fertilizers and all other producers/exporters of melamine in India. For
a full discussion of Commerce's critical circumstances determination,
see the Issues and Decision Memorandum.
---------------------------------------------------------------------------
\9\ See Preliminary Determination PDM.
---------------------------------------------------------------------------
Changes Since the Preliminary Determination and Post-Preliminary
Analysis
As noted above, we are now basing Gujarat Fertilizers'
countervailable subsidy rate on total AFA. For a discussion of this
change, see the Issues and Decision Memorandum.
All-Others Rate
Section 705(c)(5)(A) of the Act provides that in a final
determination, Commerce shall determine an estimated all-others rate
for companies not individually examined equal to the weighted average
of the estimated countervailable subsidy rates established for
exporters and producers individually examined, excluding any zero or de
minimis countervailable subsidy rates and any rates based entirely
under section 776 of the Act (facts available). If the individual
estimated countervailable subsidy rates established for all exporters
and producers individually examined are zero, de minimis, or determined
entirely under section 776 of the Act, section 705(c)(5)(A)(ii) of the
Act provides that Commerce may use any reasonable method to establish
an estimated all-others countervailable subsidy rate for exporters and
producers not individually investigated, including averaging the
weighted average countervailable subsidy rates determined for the
exporters and producers individually investigated.
Commerce determined Gujarat Fertilizers' estimated countervailable
subsidy rate entirely under section 776 of the Act. Gujarat Fertilizers
is the sole producer/exporter individually examined in this
investigation and there are no other countervailable subsidy rates on
the record. Given these facts, Commerce has determined that a
reasonable method for establishing the estimated all-others
countervailable subsidy rate is to assign Gujarat Fertilizers'
estimated countervailable subsidy rate to all other producers and
exporters.
Final Determination
Commerce determines that the following estimated net
countervailable subsidy rate exists for the period January 1, 2023,
through December 31, 2023:
------------------------------------------------------------------------
Subsidy rate
Company (percent ad
valorem)
------------------------------------------------------------------------
Gujarat State Fertilizers and Chemicals Limited........... 276.06
All Others................................................ 276.06
------------------------------------------------------------------------
Disclosure
Commerce intends to disclose its calculations and analysis
performed to parties to the proceeding within five days of public
announcement of this final 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).
Continuation of Suspension of Liquidation
As a result of the Preliminary Determination, which included an
affirmative critical circumstances determination, and pursuant to
section 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
Appendix I, entered, or withdrawn from warehouse, for consumption on or
after April 23, 2024, which is 90 days prior to the date of publication
of the Preliminary Determination in the Federal Register.\10\ In
accordance with section 703(d) of the Act, on November 19, 2024,
Commerce instructed CBP to discontinue the suspension of liquidation of
all entries of subject merchandise entered or withdrawn from warehouse,
on or after
[[Page 9415]]
November 19, 2024, but to continue the suspension of liquidation of all
entries of subject merchandise on or before November 18, 2024.
---------------------------------------------------------------------------
\10\ See Preliminary Determination.
---------------------------------------------------------------------------
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, Commerce will issue a CVD 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 in the table
above. If the ITC determines that material injury, or threat of
material injury, does not exist, this investigation will be terminated,
and all estimated countervailing 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 melamine
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 threatened with material injury, by reason of
U.S. imports of melamine from India. Commerce is making available to
the ITC all non-privileged and non-proprietary 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 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 from warehouse, 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 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: February 6, 2025.
Christopher Abbott,
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 investigation 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 Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Determination of Critical Circumstances
V. Use of Facts Otherwise Available and Application of Adverse
Inferences
VI. Discussion of the Issues
Comment 1: Whether Duty Drawback (DDB) Program is a Non-
countervailable and World Trade Organization (WTO) Compliant Program
Comment 2: Whether Commerce Incorrectly Countervailed the
Remission of Duties and Taxes on Export Products (RoDTEP) Program
Comment 3: Whether the Urea Subsidy Program (USP) is Tied to
Non-Subject Merchandise
Comment 4: Whether Commerce Improperly Applied Adverse Facts
Available (AFA) to the Natural Gas at Less Than Adequate
Remuneration (LTAR) Program
Comment 5: Whether Commerce Improperly Terminated its
Verification of Gujarat Fertilizers
Comment 6: Whether Critical Circumstances Exist With Respect to
Gujarat Fertilizers
VII. Recommendation
[FR Doc. 2025-02548 Filed 2-11-25; 8:45 am]
BILLING CODE 3510-DS-P
</pre></body>
</html>Indexed from Federal Register on February 12, 2025.
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.