Notice2026-02345

Oleoresin Paprika From India: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, In Part, and Alignment of Final Determination With Final Antidumping Duty Determination

Primary source

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Published
February 6, 2026

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of oleoresin paprika from India. The period of investigation is April 1, 2024, through March 31, 2025. Interested parties are invited to comment on this preliminary determination.

Full Text

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<title>Federal Register, Volume 91 Issue 25 (Friday, February 6, 2026)</title>
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[Federal Register Volume 91, Number 25 (Friday, February 6, 2026)]
[Notices]
[Pages 5427-5429]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-02345]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-939]


Oleoresin Paprika From India: Preliminary Affirmative 
Countervailing Duty Determination, Preliminary Affirmative Critical 
Circumstances Determination, In Part, 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 oleoresin paprika from India. The period of 
investigation is April 1, 2024, through March 31, 2025. Interested 
parties are invited to comment on this preliminary determination.

DATES: Applicable February 6, 2026.

FOR FURTHER INFORMATION CONTACT: Laura Delgado or Charles Doss, AD/CVD 
Operations, Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-1468 or (202) 482-4474, 
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). Commerce 
published the notice of initiation of this investigation on July 22, 
2025.\1\ On September 3, 2025, Commerce postponed the preliminary 
determination of this investigation until November 24, 2025.\2\
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    \1\ See Oleoresin Paprika from India: Initiation of 
Countervailing Duty Investigation, 90 FR 34433 (July 22, 2025) 
(Initiation Notice).
    \2\ See Oleoresin Paprika from India: Postponement of 
Preliminary Determination in the Countervailing Duty Investigation, 
90 FR 42564 (September 3, 2025).
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    Due to the lapse in appropriations and Federal Government shutdown, 
on November 14, 2025, Commerce tolled all deadlines in administrative 
proceedings by 47 days.\3\ Additionally, due to a backlog of documents 
that were electronically filed via Enforcement and Compliance's 
Antidumping and Countervailing Duty Centralized Electronic Service 
System (ACCESS) during the federal government shutdown, on November 24, 
2025, Commerce tolled all deadlines in administrative proceedings by an 
additional 21 days.\4\ Accordingly the revised deadline is now January 
29, 2026.
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    \3\ See Memorandum, ``Deadlines Affected by the Shutdown of the 
Federal Government,'' dated November 14, 2025.
    \4\ See Memorandum, ``Tolling of all Case Deadlines,'' dated 
November 24, 2025.
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\5\ A list of topics discussed in the Preliminary Decision 
Memorandum is included as Appendix II to this notice. The Preliminary 
Decision Memorandum is a public document and is on file electronically 
via 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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    \5\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Oleoresin 
Paprika 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 oleoresin paprika from 
India. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\6\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e., scope).\7\ No interested 
party commented on the scope of the investigation as it appeared in the 
Initiation Notice. Accordingly, Commerce is not preliminarily modifying 
the scope language as it appeared in the Initiation Notice.
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    \6\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \7\ See Initiation Notice.

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[[Page 5428]]

Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
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.\8\
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    \8\ 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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Preliminary Affirmative Determination of Critical Circumstances, In 
Part

    In accordance with section 703(e)(1) of the Act, Commerce 
preliminarily determines that critical circumstances exist with respect 
to imports of oleoresin paprika from Synthite Industries Pvt. Ltd 
(Synthite), but do not exist with respect Mane Kancor Ingredients 
Private Limited (Mane Kancor) and all other exporters or producers not 
individually examined. For a full description of the methodology and 
results of Commerce's analysis, see the Preliminary Decision 
Memorandum.

Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final countervailing duty (CVD) determination in this 
investigation with the final determination in the companion less-than-
fair-value (LTFV) investigation of oleoresin paprika from India based 
on a request made by Rezolex, Ltd. Co. (the petitioner).\9\ 
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 June 15, 2026, unless postponed.
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    \9\ See Petitioner's Letter, ``Request for Alignment of the 
Countervailing Duty Final Determination with the Companion 
Antidumping Duty Final Determination,'' dated January 2, 2026.
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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 
zero and de minimis rates and any rates based entirely under section 
776 of the Act.
    In this investigation, Commerce calculated individual estimated 
countervailable subsidy rates for Mane Kancor and Synthite that are not 
zero, de minimis, or based entirely on facts otherwise available. 
Commerce calculated the all-others rate using a weighted average of the 
individual estimated subsidy rates calculated for the examined 
respondents using each company's publicly-ranged values for the 
merchandise under consideration.\10\
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    \10\ 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 values 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 
Duty Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53662 
(September 1, 2010), and accompanying Issues and Decision Memorandum 
at Comment 1. As complete publicly ranged sales data were available, 
Commerce based the all-others rate on the publicly ranged sales data 
of the mandatory respondents. For a complete analysis of the data, 
see Memorandum, ``Calculation of Subsidy Rate for All Others,'' 
dated concurrently.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
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Mane Kancor Ingredients Private Limited.................           18.56
Synthite Industries Pvt. Ltd............................           25.41
All Others..............................................           22.95
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Suspension of Liquidation

    In accordance with section 703(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 section entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of this notice in the 
Federal Register. Further, pursuant to section 703(d)(1)(B) of the Act 
and 19 CFR 351.107(e), Commerce will instruct CBP to require a cash 
deposit equal to the estimated company-specific countervailable subsidy 
rate or the estimated all-others rate, as follows: (1) the cash deposit 
rate for the respondents listed above will be equal to the company-
specific estimated individual countervailable subsidy rates determined 
in this preliminary determination; (2) if both the producer and 
exporter of the subject merchandise have company-specific estimated 
subsidy rates determined in this preliminary determination, and their 
rates differ, then the applicable cash deposit rate will be the higher 
of these two rates; (3) if either the producer or the exporter, but not 
both, of the subject merchandise have a company-specific estimated 
subsidy rate determined in this preliminary determination, the 
applicable cash deposit rate will be that company's company-specific 
rate; and (4) the cash deposit rate for all other producers and 
exporters will be equal to the estimated all-others subsidy rate.
    Section 703(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of: (a) 
the date which is 90 days before the date on which the suspension of 
liquidation was first ordered; or (b) the date on which notice of 
initiation of the investigation was published. Commerce preliminarily 
finds that critical circumstances exist for imports of subject 
merchandise produced and/or exported by Synthite. In accordance with 
section 703(e)(2)(A) of the Act, the suspension of liquidation shall 
apply to unliquidated entries of merchandise from the exporters/
producers identified in this paragraph that were entered, or withdrawn 
from warehouse, for consumption on or after the date which is 90 days 
before the publication of this notice.

Disclosure

    Commerce intends to disclose its calculations and analysis 
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 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.

[[Page 5429]]

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)(iii) and (d)(2)(iii), we 
request that 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 
executive summary of each issue to no more than 450 words, not 
including citations. We intend to use the 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 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 within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at a time and date to be 
determined. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.

U.S. International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the U.S. International Trade Commission (ITC) of its 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 oleoresin 
paprika from India are materially injuring, or threaten material injury 
to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: January 29, 2026.
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 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.

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. Preliminary Affirmative Determination of Critical Circumstances, 
in Part
VI. Subsidies Valuation
VII. Benchmarks
VIII. Analysis of Programs
IX. Recommendation

[FR Doc. 2026-02345 Filed 2-5-26; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on February 6, 2026.

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.