Notice2025-13696
Oleoresin Paprika From India: Initiation of Countervailing Duty Investigation
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
July 22, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Full Text
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<title>Federal Register, Volume 90 Issue 138 (Tuesday, July 22, 2025)</title>
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[Federal Register Volume 90, Number 138 (Tuesday, July 22, 2025)]
[Notices]
[Pages 34433-34436]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-13696]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-939]
Oleoresin Paprika From India: Initiation of Countervailing Duty
Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable July 15, 2025.
FOR FURTHER INFORMATION CONTACT: Suresh Maniam, Office I, AD/CVD
Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1603.
SUPPLEMENTARY INFORMATION:
The Petition
On June 25, 2025, the U.S. Department of Commerce (Commerce)
received a countervailing duty (CVD) petition concerning imports of
oleoresin paprika from India, filed in proper form on behalf of
Rezolex, Ltd. Co. (the petitioner), a domestic producer of oleoresin
paprika.\1\ The CVD Petition was accompanied by an antidumping duty
(AD) petition concerning imports of oleoresin paprika from India.\2\
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\1\ See Petitioner's Letter, ``Petition for the Imposition of
Antidumping and Countervailing Duties,'' dated June 25, 2025
(Petition).
\2\ Id.
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Between June 27 and July 9, 2025, Commerce requested additional
information pertaining to certain aspects of the Petition in
supplemental questionnaires.\3\ Between July 1 and 10, 2025, the
petitioner filed timely responses to these requests for additional
information.\4\
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\3\ See Commerce's Letters, ``Supplemental Questions,'' dated
June 27, 2025 (First General Issues Supplemental Questionnaire);
``Supplemental Questions,'' dated June 27, 2025; and ``Second
General Issues Supplemental Questions,'' dated July 9, 2025 (Second
General Issues Supplemental Questionnaire).
\4\ See Petitioner's Letters, ``Response to Supplemental
Questions,'' dated July 1, 2025 (First General Issues Supplement);
``Response to Supplemental Questions,'' dated July 1, 2025; and
``Response Supplemental Questions,'' dated July 10, 2025 (Second
General Issues Supplement).
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In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that the Government of India
(GOI) is providing countervailable subsidies, within the meaning of
sections 701 and 771(5) of the Act, to producers of oleoresin paprika
in India, and that such imports are materially injuring, or threatening
material injury to, the domestic industry producing oleoresin paprika
in the United States. Consistent with section 702(b)(1) of the Act and
19 CFR 351.202(b), for those alleged programs on which we are
initiating a CVD investigation, the Petition was accompanied by
information reasonably available to the petitioner supporting its
allegations.
Commerce finds that the petitioner filed the Petition on behalf of
the domestic industry, because the petitioner is an interested party,
as defined in section 771(9)(C) of the Act. Commerce also finds that
the petitioner demonstrated sufficient industry support with respect to
the initiation of the requested CVD investigation.\5\
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\5\ See section on ``Determination of Industry Support for the
Petition,'' infra.
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Period of Investigation (POI)
Because the Petition was filed on June 25, 2025, the POI is January
1, 2024, through December 31, 2024.\6\
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\6\ See 19 CFR 351.204(b)(2).
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Scope of the Investigation
The product covered by this investigation is oleoresin paprika from
India. For a full description of the scope of this investigation, see
the appendix to this notice.
Comments on the Scope of the Investigation
Between June 27 and July 9, 2025, Commerce requested information
and clarification from the petitioner regarding the proposed scope to
ensure that the scope language in the Petition is an accurate
reflection of the products for which the domestic industry is seeking
relief.\7\ Between July 1 and 10, 2025, the petitioner provided
clarifications and revised the scope.\8\ The description of merchandise
covered by this investigation, as described in the appendix to this
notice, reflects these clarifications.
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\7\ See First General Issues Supplemental Questionnaire; see
also Second General Issues Supplemental Questionnaire.
\8\ See First General Issues Supplement at 1-6; see also Second
General Issues Supplement at 1-4.
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As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (i.e., scope).\9\ Commerce will consider all scope
comments received from interested parties and, if necessary, will
consult with interested parties prior to the issuance of the
preliminary determination. If scope comments include factual
information,\10\ all such factual information should be limited to
public information. Commerce requests that interested parties provide
at the beginning of their scope comments a public executive summary for
each comment or issue raised in their submission. Commerce further
requests that interested parties limit their public executive summary
of each comment or issue to no more than 450 words, not including
citations. Commerce intends to use the public executive summaries as
the basis of the comment summaries included in the analysis of scope
comments. To facilitate preparation of its questionnaires, Commerce
requests that scope comments be submitted by 5:00 p.m. Eastern Time
(ET) on August 4, 2025, which is 20 calendar days from the signature
date of this notice. Any rebuttal comments, which may include factual
information, and should also be limited to public information, must be
filed by 5:00 p.m. ET on August 14, 2025, which is 10 calendar days
from the initial comment deadline.
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\9\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble); see also 19 CFR
351.312.
\10\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
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Commerce requests that any factual information that parties
consider relevant to the scope of this investigation be submitted
during that period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigation may be relevant, the party must contact Commerce and
request permission to submit the additional information. All scope
comments must be filed simultaneously on the records of the concurrent
AD and CVD investigations.
[[Page 34434]]
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS), unless an exception
applies.\11\ An electronically filed document must be received
successfully in its entirety by the time and date it is due.
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\11\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014), for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on using ACCESS
can be found at <a href="https://access.trade.gov/help.aspx">https://access.trade.gov/help.aspx</a> and a handbook
can be found at <a href="https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf">https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf</a>.
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Consultations
Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce
notified the GOI of the receipt of the Petition and provided an
opportunity for consultations with respect to the Petition.\12\ The GOI
did not request consultations.
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\12\ See Commerce's Letter, ``Invitation for Consultations to
Discuss the Countervailing Duty Petition,'' dated June 25, 2025.
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Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) at least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The U.S. International Trade Commission (ITC),
which is responsible for determining whether ``the domestic industry''
has been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC apply the same statutory definition regarding the domestic like
product,\13\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\14\
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\13\ See section 771(10) of the Act.
\14\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd Algoma Steel Corp., Ltd. v. United
States, 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigation.\15\ Based on our analysis of the information
submitted on the record, we have determined that oleoresin paprika, as
defined in the scope, constitutes a single domestic like product, and
we have analyzed industry support in terms of that domestic like
product.\16\
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\15\ For a discussion of the domestic like product analysis as
applied to this case and information regarding industry support, see
Checklist, ``Countervailing Duty Investigation Initiation Checklist:
Oleoresin Paprika from India,'' dated concurrently with, and hereby
adopted by, this notice (India CVD Initiation Checklist), at
Attachment II, ``Analysis of Industry Support for the Antidumping
and Countervailing Duty Petitions Covering Oleoresin Paprika from
India.'' This checklist is on file electronically via ACCESS.
\16\ Id.
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In determining whether the petitioner has standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of the Investigation,'' in the appendix to
this notice. To establish industry support, the petitioner provided its
own production of the domestic like product in 2024.\17\ The petitioner
identified itself as the sole remaining producer of the domestic like
product; therefore, the Petition is supported by 100 percent of the
U.S. industry.\18\ We relied on data provided by the petitioner for
purposes of measuring industry support.\19\
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\17\ Id.
\18\ Id.
\19\ Id.
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Our review of the data provided in the Petition, the First General
Issues Supplement, and other information readily available to Commerce
indicates that the petitioner has established industry support for the
Petition.\20\ First, the Petition established support from domestic
producers (or workers) accounting for more than 50 percent of the total
production of the domestic like product and, as such, Commerce is not
required to take further action in order to evaluate industry support
(e.g., polling).\21\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
702(c)(4)(A)(i) of the Act because the domestic producers (or workers)
who support the Petition account for at least 25 percent of the total
production of the domestic like product.\22\ Finally, the domestic
producers (or workers) have met the statutory criteria for industry
support under section 702(c)(4)(A)(ii) of the Act because the domestic
producers (or workers) who support the Petition account for more than
50 percent of the production of the domestic like product produced by
that portion of the industry expressing support for, or opposition to,
the Petition.\23\ Accordingly, Commerce determines that the Petition
was filed on behalf of the domestic industry within the meaning of
section 702(b)(1) of the Act.\24\
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\20\ Id.
\21\ Id.; see also section 702(c)(4)(D) of the Act.
\22\ See Attachment II of the India CVD Initiation Checklist.
\23\ Id.
\24\ Id.
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Injury Test
Because India is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of the subject merchandise from India materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioner alleges that imports of the subject merchandise are
benefiting from countervailable subsidies and that
[[Page 34435]]
such imports are causing, or threaten to cause, material injury to the
U.S. industry producing the domestic like product. In addition, the
petitioner alleges that subject imports from India exceed the
negligibility threshold provided for under section 771(24)(A) of the
Act.\25\
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\25\ For further discussion, see India CVD Initiation Checklist
at Attachment III, ``Analysis of Allegations and Evidence of
Material Injury and Causation for the Antidumping and Countervailing
Duty Petitions Covering Oleoresin Paprika from India.''
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The petitioner contends that the industry's injured condition is
illustrated by a significant increase in the volume of subject imports;
lost sales and revenues; underselling and price depression and/or
suppression; declines in production, capacity utilization, and sales
volume; and negative impact on financial performance.\26\ We assessed
the allegations and supporting evidence regarding material injury,
threat of material injury, causation, as well as negligibility, and we
have determined that these allegations are properly supported by
adequate evidence, and meet the statutory requirements for
initiation.\27\
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\26\ Id.
\27\ Id.
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Initiation of CVD Investigation
Based upon the examination of the Petition and supplemental
responses, we find that these meet the requirements of section 702 of
the Act. Therefore, we are initiating a CVD investigation to determine
whether imports of oleoresin paprika from India benefit from
countervailable subsidies conferred by the GOI. In accordance with
section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless
postponed, we will make our preliminary determination no later than 65
days after the date of this initiation.
Based on our review of the Petition, we find that there is
sufficient information to initiate a CVD investigation on 21 programs
alleged by the petitioner. For a full discussion of the basis for our
decision to initiate on each program, see the India CVD Initiation
Checklist. A public version of the initiation checklist for this
investigation is available on ACCESS.
Respondent Selection
In the Petition, the petitioner identified 57 companies in India as
producers/exporters of oleoresin paprika.\28\ Commerce intends to
follow its standard practice in CVD investigations and calculate
company-specific subsidy rates in this investigation. In the event that
Commerce determines that the number of companies is large and it cannot
individually examine each company based on Commerce's resources,
Commerce intends to select mandatory respondents based on U.S. Customs
and Border Protection (CBP) entry data for U.S. imports under the
appropriate Harmonized Tariff Schedule of the United States (HTSUS)
subheading(s) listed in the ``Scope of the Investigation'' in the
appendix.
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\28\ See Petition at Volume I (page 30 and Exhibit I-17); see
also First General Issues Supplement at 1 and Exhibit I-SUPP-1.
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On July 9, 2025, Commerce released CBP data on imports of oleoresin
paprika from India under administrative protective order (APO) to all
parties with access to information protected by APO and indicated that
interested parties wishing to comment on CBP data and/or respondent
selection must do so within three business days of the publication date
of the notice of initiation of this investigation.\29\ Comments must be
filed electronically using ACCESS. An electronically-filed document
must be received successfully in its entirety via ACCESS by 5:00 p.m.
ET on the specified deadline. Commerce will not accept rebuttal
comments regarding the CBP data or respondent selection.
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\29\ See Memorandum, ``Release of U.S. Customs and Border
Protection Entry Data,'' dated July 9, 2025.
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Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). Instructions for filing such
applications may be found on Commerce's website at <a href="https://www.trade.gov/administrative-protective-orders">https://www.trade.gov/administrative-protective-orders</a>.
Distribution of a Copy of the Petition
In accordance with section 702(b)(4)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the GOI via ACCESS. To the extent practicable, we will
attempt to provide a copy of the public version of the Petition to each
exporter named in the Petition, as provided under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of its initiation, as required by
section 702(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of oleoresin paprika from India are materially
injuring, or threatening material injury to, a U.S. industry.\30\ A
negative ITC determination will result in the investigation being
terminated.\31\ Otherwise, this CVD investigation will proceed
according to statutory and regulatory time limits.
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\30\ See section 703(a)(1) of the Act.
\31\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors of production under 19 CFR 351.408(c) or
to measure the adequacy of remuneration under 19 CFR 351.511(a)(2);
(iv) evidence placed on the record by Commerce; and (v) evidence other
than factual information described in (i)-(iv). Section 351.301(b) of
Commerce's regulations requires any party, when submitting factual
information, to specify under which subsection of 19 CFR 351.102(b)(21)
the information is being submitted \32\ and, if the information is
submitted to rebut, clarify, or correct factual information already on
the record, to provide an explanation identifying the information
already on the record that the factual information seeks to rebut,
clarify, or correct.\33\ Time limits for the submission of factual
information are addressed in 19 CFR 351.301, which provides specific
time limits based on the type of factual information being submitted.
Interested parties should review the regulations prior to submitting
factual information in this investigation.
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\32\ See 19 CFR 351.301(b).
\33\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by Commerce. In general, an extension request will
be considered untimely if it is filed after the expiration of the time
limit established under 19 CFR 351.301, or as otherwise specified by
Commerce.\34\ For submissions that are due from multiple parties
simultaneously, an extension request will be considered untimely if it
is filed after 10:00 a.m. ET on the due date. Under certain
circumstances, Commerce may elect to specify a different time limit by
which extension requests will be considered untimely for submissions
which are due from multiple parties simultaneously. In such a case, we
will
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inform parties in a letter or memorandum of the deadline (including a
specified time) by which extension requests must be filed to be
considered timely. An extension request must be made in a separate,
standalone submission; under limited circumstances we will grant
untimely filed requests for the extension of time limits, where we
determine, based on 19 CFR 351.302, that extraordinary circumstances
exist. Parties should review Commerce's regulations concerning the
extension of time limits and the Time Limits Final Rule prior to
submitting factual information in this investigation.\35\
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\34\ See 19 CFR 351.302.
\35\ See 19 CFR 351.301; see also Extension of Time Limits;
Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final
Rule), available at <a href="https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm">https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm</a>.
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Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\36\
Parties must use the certification formats provided in 19 CFR
351.303(g).\37\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\36\ See section 782(b) of the Act.
\37\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, available at
<a href="https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf">https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf</a>.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Parties wishing to participate
in this investigation should ensure that they meet the requirements of
19 CFR 351.103(d) (e.g., by filing the required letters of appearance).
Note that Commerce has amended certain of its requirements pertaining
to the service of documents in 19 CFR 351.303(f).\38\
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\38\ See Administrative Protective Order, Service, and Other
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR
67069 (September 29, 2023).
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This notice is issued and published pursuant to sections 702 and
777(i) of the Act, and 19 CFR 351.203(c).
Dated: July 15, 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
Scope of the Investigation
The merchandise covered by the scope of this investigation is
the coloring additive oleoresin paprika. Oleoresin paprika is a
viscous, highly colored liquid in various shades of red or orange
made from the extract of Capsicum peppers. Covered merchandise
includes all oleoresin paprika, regardless of pepper variety, with
an American Spice Trade Association (ASTA) value of at least 500 or
a color unit (CU) value of at least 20,000 as determined by
spectrophotometric measurement. The Chemical Abstracts Service (CAS)
Registry numbers for oleoresin paprika are 68917-78-2 and 84625-29-
6; the Center for Food Safety and Applied Nutrition (CFSAN) number
is 977006-45-3; the Flavoring Extract Manufacturers' Association
(FEMA) number is 2834; and the E number is E160c. Subject oleoresin
paprika may also be referred to by other product names, including,
but not limited to, paprika oleoresin, oleoresin of paprika, paprika
extract, extract of paprika, paprika oil, or paprika essential oil.
Subject oleoresin paprika may be blended with oil or water prior
to importation or may be imported in its crude or unstandardized
form. Subject oleoresin paprika may also be blended with emulsifiers
or preservatives. The scope includes all oleoresin paprika meeting
the specifications above regardless of whether or not blended with
or soluble in oil or water, and regardless of weight, pungency,
quality, solvent content, or additives. Further, the scope includes
crude or unstandardized oleoresin paprika that has been blended,
finished, packaged, or otherwise processed in a third country, if
the blending, finishing, packaging, or processing performed would
not otherwise remove the merchandise from the scope. Oleoresin
paprika that is otherwise subject to this investigation is not
excluded when commingled with oleoresin paprika from sources not
subject to this investigation, or when commingled with other
oleoresins. Only the subject component of such commingled products
is covered by the scope of this investigation.
The merchandise subject to this investigation is classified in
the Harmonized Tariff Schedule of the United States (HTSUS) under
subheadings 3203.00.8000 and 3301.90.1010. Subject merchandise may
also enter under HTSUS subheading 1301.90.9190, 1302.19.9140, and
3205.00.0500. Although the HTSUS subheadings are provided for
convenience and customs purposes, the written description of the
scope of this investigation is dispositive.
[FR Doc. 2025-13696 Filed 7-21-25; 8:45 am]
BILLING CODE 3510-DS-P
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