Hexamethylenetetramine From India: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
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Issuing agencies
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of hexamethylenetetramine (hexamine) from India. The period of investigation is April 1, 2023, through March 31, 2024. Interested parties are invited to comment on this preliminary determination.
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<title>Federal Register, Volume 90 Issue 44 (Friday, March 7, 2025)</title>
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[Federal Register Volume 90, Number 44 (Friday, March 7, 2025)]
[Notices]
[Pages 11512-11514]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-03644]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-933]
Hexamethylenetetramine From India: Preliminary Affirmative
Countervailing Duty Determination and Alignment of Final Determination
With 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 hexamethylenetetramine (hexamine) from
India. The period of investigation is April 1, 2023, through March 31,
2024. Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable March 7, 2025.
FOR FURTHER INFORMATION CONTACT: Claudia Cott or Thomas Schauer, AD/CVD
Operations, Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-4270 or (202) 482-0410,
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). On November 4,
2024, Commerce published the notice of initiation of this
countervailing duty (CVD) investigation in the Federal Register.\1\ On
November 21, 2024, Commerce postponed the preliminary determination
until February 28, 2025.\2\
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\1\ See Hexamethylenetetramine from the People's Republic of
China and India: Initiation of Countervailing Duty Investigations,
89 FR 87560 (November 4, 2024) (Initiation Notice).
\2\ See Hexamethylenetetramine from the People's Republic of
China and India: Postponement of Preliminary Determinations in the
Countervailing Duty Investigations, 89 FR 92096 (November 21, 2024).
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For a complete description of 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 in 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 of the Countervailing Duty Investigation
of Hexamethylenetetramine 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 hexamine from India.
For a complete description of the scope of this investigation, see
Appendix I.
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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
parties 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) (Preamble).
\5\ See Initiation Notice, 89 FR at 87561.
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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\ For a full description of the methodology underlying our
preliminary determination, see the Preliminary Decision Memorandum.
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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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Commerce notes that, in making these findings, it relied, in part,
on facts available, and, because it finds that certain companies failed
to timely respond to Commerce's quantity and value questionnaire and
the Government of India did not act to the best of their ability to
respond to Commerce's requests for information, it drew an adverse
inference where appropriate in selecting from among the facts otherwise
available.\7\ For further information, see the ``Use of Facts Otherwise
Available and Adverse Inferences'' section in the Preliminary Decision
Memorandum.
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\7\ See sections 776(a) and (b) of the Act.
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Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the final CVD determination in this
investigation with the final determination in the companion
investigation of sales at less than fair value (LTFV) of hexamine from
India based on a request made by the petitioner.\8\ Consequently, the
final CVD determination will be issued on the same date as the final
LTFV determination, which is currently scheduled to be issued no later
than July 14, 2025, unless postponed.\9\
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\8\ See Petitioner's Letter, ``Request for Alignment of Final
Determinations with Deadline in Concurrent AD Investigations,''
dated January 23, 2025.
\9\ See Hexamethylenetetramine from the People's Republic of
China, Germany, India, and Saudi Arabia: Postponement of Preliminary
Determinations in the Less-Than-Fair-Value Investigations, 90 FR
10067, 10068 (February 21, 2025).
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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
rates that are zero, de minimis, or based entirely under section 776 of
the Act.
In this investigation, Commerce preliminarily calculated an
individual estimated countervailable subsidy rate for the sole
respondent, Kanoria Chemicals and Industries Limited (Kanoria), that is
not zero, de minimis, or based entirely on the facts otherwise
available. Commerce calculated the all-others rate using the individual
estimated subsidy rate calculated for the sole examined respondent,
i.e., Kanoria.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist for the period, April 1, 2023,
through March 31, 2024:\10\
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\10\ See As discussed in the Preliminary Decision Memorandum,
Commerce preliminarily finds the following company to be cross-owned
with Kanoria Chemicals and Industries Liimited: Vardhan Limited.
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Subsidy rate
Company (percent ad
valorem)
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Kanoria Chemicals and Industries Limited \10\............. 2.32
Horizon Chemicals......................................... * 139.55
Micro Labs Ltd............................................ * 139.55
Shreenathji Rasayan Private Limited....................... * 139.55
Rajsha Chemicals Pvt. Ltd................................. * 139.55
All Others................................................ 2.32
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* Rate based on facts available with adverse inferences.
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
the scope of the investigation entered, or withdrawn from warehouse,
for consumption on or after the date of publication of this notice in
the Federal Register. Further, pursuant to 19 CFR 351.205(d), Commerce
will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose to interested parties the calculations
performed to interested parties in this preliminary determination
within five days of its 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).
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 the
case briefs, may be filed not later than five days after the date for
filing case briefs.\11\ 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.\12\
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\11\ 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).
\12\ 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
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interested parties provide at the beginning of their briefs a public
executive summary for each issue raised in their briefs.\13\ Further,
we request that interested parties limit their public executive summary
of each issue to no more than 450 words, not including citations. We
intend to use the public executive summaries as the basis of 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 public 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).\14\
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\13\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\14\ See APO and Service Final Rule.
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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 via ACCESS
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 and 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, parties will
be notified of the date, time, and location of the hearing.\15\ Parties
should confirm by telephone the date, time, and location of the hearing
two days before the scheduled hearing date.
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\15\ See 19 CFR 351.310(d).
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U.S. International Trade Commission (ITC) Notification
In accordance with section 703(f) of the Act, Commerce will notify
the 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 hexamine from India are materially
injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 703(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).
Dated: February 28, 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 scope of the investigation covers hexamine in granular form,
with a particle size of 5 millimeters or less, whether stabilized or
unstabilized, whether or not blended, mixed, pulverized, or grounded
with other products, containing 50 percent or more hexamine by
weight.
Hexamine is the common name for hexamethylene tetramine
(Chemical Abstract Service #100-97-0), and is also referred to as
1,3,5,7-tetraazaadamantanemethenamine; HMT; HMTA; 1,3,5,7-
tetraazatricyclo {3.3.1.13,7{time} decane; 1,3,5,7-tetraaza
adamantane; hexamethylenamine. Hexamine has the chemical formula
C<INF>6</INF>H<INF>12</INF>N<INF>4</INF>.
Granular hexamine that has been blended with other product(s) is
included in this scope when the resulting mix contains 50 percent or
more of hexamine by weight, regardless of whether it is blended with
inert additives, co-reactants, or any additives that undergo self-
condensation.
Subject merchandise includes merchandise matching the above
description that has been processed in a third country, including by
commingling, diluting, adding or removing additives, or performing
any other processing that would not otherwise remove the merchandise
from the scope of the investigations if performed in the subject
country.
Merchandise covered by the scope of the investigations can be
classified in the Harmonized Tariff Schedule (HTSUS) of the United
States under the subheading 2933.69.5000. The HTSUS subheading and
Chemical Abstracts Service registry number are provided for
convenience and customs purposes only; however, 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. Diversification of India's Economy
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Subsidies Valuation
VII. Analysis of Programs
VIII. Recommendation
[FR Doc. 2025-03644 Filed 3-6-25; 8:45 am]
BILLING CODE 3510-DS-P
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