Notice2025-05887
2,4-Dichlorophenoxyacetic Acid From the People's Republic of China: Final Affirmative Countervailing Duty Determination
Primary source
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Published
April 7, 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 2,4-dichlorophenoxyacetic acid (2,4-D) from the People's Republic of China (China). The period of investigation (POI) is January 1, 2023, through December 31, 2023.
Full Text
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<title>Federal Register, Volume 90 Issue 65 (Monday, April 7, 2025)</title>
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[Federal Register Volume 90, Number 65 (Monday, April 7, 2025)]
[Notices]
[Pages 14957-14959]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-05887]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-161]
2,4-Dichlorophenoxyacetic Acid From the People's Republic of
China: 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 2,4-dichlorophenoxyacetic acid (2,4-D) from the People's Republic of
China (China). The period of investigation (POI) is January 1, 2023,
through December 31, 2023.
DATES: Applicable April 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
On September 13, 2024, Commerce published the Preliminary
Determination in the Federal Register and aligned this countervailing
duty (CVD) final determination with the final determination in the
less-than-fair value investigation of 2,4-D from China, in accordance
with section 705(a)(1) of the Tariff Act of 1930, as amended (the Act)
and 19 CFR 351.210(b)(4).\1\ For a summary of the events that occurred
since the Preliminary Determination, see the Issues and Decision
Memorandum.\2\ 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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\1\ See 2,4-Dichlorophenoxyacetic Acid from the People's
Republic of China: Preliminary Affirmative Countervailing Duty
Determination and Alignment of Final Determination With Final
Antidumping Duty Determination, 89 FR 74906 (September 13, 2024)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum (PDM).
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of 2,4-Dichlorophenoxyacetic Acid from the People's
Republic of China,'' 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 2,4-D from China. 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 from
that published in the Preliminary Determination for the final
determination.
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs filed by the 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.
Verification
As provided in section 782(i) of the Act, Commerce conducted
verification of the subsidy information reported by company respondents
Jiangxi Tianyu Chemical Co., Ltd. (Tianyu) and Shandong Rainbow
Agrosciences Co., Ltd. (Rainbow Agrosciences), and of the
[[Page 14958]]
Government of China's questionnaire responses pertaining to the Export
Buyer Credit Program.\3\
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\3\ See Memoranda, ``Verification of the Questionnaire Responses
of Jiangxi Tianyu Chemical Co., Ltd.,'' dated November 7, 2024;
``Verification of the Questionnaire Responses of Shandong Weifang
Rainbow Chemical Co., Ltd.,'' dated November 7, 2024; and
``Verification of the Questionnaire Responses of the Government of
China,'' dated November 22, 2024.
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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.\4\ For a full
description of the methodology underlying our final determination, see
the Issues and Decision Memorandum.
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\4\ 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 \5\ and the Issues and Decision Memorandum at
Comments 1, 5, 6, and 7.
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\5\ See Preliminary Determination PDM at 5-19.
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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, we made certain
changes to the subsidy rate calculations for Rainbow Agrosciences and
Tianyu for the final determination. For a discussion of these changes,
see the Issues and Decision Memorandum.
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. As discussed in the Issues and Decision
Memorandum, for the final determination we assigned a rate based
entirely on AFA to Rainbow Agrosciences. Therefore, the only rate that
is not zero, de minimis, or based entirely on facts otherwise available
is the rate calculated for Tianyu. Consequently, Commerce assigned the
rate calculated for Tianyu 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, 2023, through December
31, 2023:
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Subsidy rate (percent
Company ad valorem)
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Jiangxi Tianyu Chemical Co., Ltd.\6\........... 26.50
Shandong Rainbow Agrosciences Co., Ltd.\7\..... * 169.63
All Others..................................... 26.50
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* Rate based on facts available with adverse inferences.
Disclosure
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\6\ Commerce continues to find Tianyu to be cross-owned with the
following companies: Thai Harvest Ltd., CAC Nantong Chemical Co.,
Ltd., and CAC Shanghai International Trading Co., Ltd.
\7\ Commerce continues to find Rainbow Agrosciences to be cross-
owned with the following companies: Shandong Weifang Rainbow
Chemical Co., Ltd., Ningxia Rainbow Chemical Co., Ltd., Shandong
Rainbow Investment Co., Ltd., and Shandong Runnong Investment Co.,
Ltd.
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Commerce intends to disclose the calculations performed 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
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, we instructed U.S. Customs
and Border Protection (CBP) to collect cash deposits and suspend
liquidation of entries of 2,4-D from China that were entered, or
withdrawn from warehouse, for consumption, on or after September 13,
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 2,4-D entered or withdrawn from warehouse, on or after
January 11, 2025, the final day of provisional measures, but to
continue the suspension of liquidation of all entries of 2,4-D on or
before January 10, 2025.
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\8\ See Preliminary Determination, 89 FR at 74907.
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If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we 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 2,4-D 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 canceled.
U.S. International Trade Commission 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 2,4-D from
China. 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 2,4-D from China no later than 45 days after our final
determination. In addition, we are 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 that 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.
[[Page 14959]]
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 CVD order directing CBP to assess, upon
further instruction by Commerce, countervailing duties on all imports
of 2,4-D 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 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: March 31, 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 covered by this investigation is 2,4-
dichlorophenoxyacetic acid (2,4-D) and its derivative products,
including salt and ester forms of 2,4-D. 2,4-D has the Chemical
Abstracts Service (CAS) registry number of 94-75-7 and the chemical
formula C<INF>8</INF>H<INF>6</INF> Cl<INF>2</INF>O<INF>3</INF>.
Salt and ester forms of 2,4-D include 2,4-D sodium salt (CAS
2702-72-9), 2,4-D diethanolamine salt (CAS 5742-19-8), 2,4-D
dimethyl amine salt (CAS 2008-39-1), 2,4-D isopropylamine salt (CAS
5742-17-6), 2,4-D tri-isopropanolamine salt (CAS 3234180-3), 2,4-D
choline salt (CAS 1048373-72-3), 2,4-D butoxyethyl ester (CAS 1929-
733), 2,4-D 2-ethylhexylester (CAS 1928-43-4), and 2,4-D
isopropylester (CAS 94-11-1). All 2,4-D, as well as the salt and
ester forms of 2,4-D, is covered by the scope irrespective of
purity, particle size, or physical form.
The conversion of a 2,4-D salt or ester from 2,4-D acid, or the
formulation of nonsubject merchandise with the subject 2,4-D, its
salts, and its esters in the country of manufacture or in a third
country does not remove the subject 2,4-D, its salts, or its esters
from the scope. For any such formulations, only the 2,4-D, 2,4-D
salt, and 2,4-D ester components of the mixture is covered by the
scope of the investigation. Formulations of 2,4-D are products that
are registered for end-use applications with the Environmental
Protection Agency and contain a dispersion agent.
The country of origin of any 2,4-D derivative salt or ester is
determined by the country in which the underlying 2,4-D acid is
produced. 2,4-D, its salts, and its esters are classified under
Harmonized Tariff Schedule of the United States (HTSUS) subheading
2918.99.2010. Subject merchandise, including the abovementioned
formulations, may also be classified under HTSUS subheadings
2922.12.0001, 2921.11.0000, 2921.19.6195, 2922.19.9690,
3808.93.0500, and 3808.93.1500. The HTSUS subheadings and CAS
registry numbers are provided for convenience and customs purposes.
The written description of the scope of the investigation is
dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandumz
I. Summary
II. Background
III. Changes from the Preliminary Determination
IV. Subsidies Valuation
V. Interest Rates and Benchmarks
VI. Analysis of Programs
VII. Discussion of the Issues
Comment 1: Whether Commerce Should Apply Total Adverse Facts
Available (AFA) to Rainbow Agrosciences
Comment 2: Whether Commerce Should Adjust the Benchmarks for
Inputs
Comment 3: Whether to Attribute the Provision of Inputs Only to
Sales of 2,4-D
Comment 4: Whether to Find the Respondents Used the Export
Buyer's Credit Program (EBCP)
Comment 5: Whether to Adjust Tianyu's Subsidy Rate for a Subsidy
Found at Verification
Comment 6: Whether the Provision of Electricity is Specific
Comment 7: Whether Individually Owned Input Suppliers are
Authorities
Comment 8: Whether to Make an Entered Value Adjustment for
Tianyu
VIII. Recommendation
[FR Doc. 2025-05887 Filed 4-4-25; 8:45 am]
BILLING CODE 3510-DS-P
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