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Notice2026-17048

Oleoresin Paprika From India: Final Affirmative Countervailing Duty Determination and Final Affirmative Critical Circumstances Determination, in Part

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Published
August 21, 2026

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 oleoresin paprika from India. The period of investigation is April 1, 2024, through March 31, 2025.

Full Text

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<title>Federal Register, Volume 91 Issue 161 (Friday, August 21, 2026)</title>
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[Federal Register Volume 91, Number 161 (Friday, August 21, 2026)]
[Notices]
[Pages 54300-54302]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17048]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-939]


Oleoresin Paprika From India: Final Affirmative Countervailing 
Duty Determination and Final Affirmative Critical Circumstances 
Determination, in Part

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 oleoresin paprika from India. The period of investigation is April 
1, 2024, through March 31, 2025.

DATES: Applicable August 21, 2026.

FOR FURTHER INFORMATION CONTACT: Charles Doss or Kate Fracke, 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) 482-4474 or (202) 482-3299, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On February 6, 2026, Commerce published its Preliminary 
Determination in the Federal Register.\1\ In the Preliminary 
Determination, and in accordance with section 705(a)(1) of the Tariff 
Act of 1930, as amended (the Act), and 19 CFR 351.210(b)(4), Commerce 
aligned the final determination of this countervailing duty (CVD) 
investigation with the final determination in the companion antidumping 
duty investigation of oleoresin paprika from India.\2\
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    \1\ See 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, 91 FR 5427 
(February 6, 2026) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum.
    \2\ Id., 91 FR at 5428.
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    For a complete description of the events that followed the 
Preliminary Determination, see the Issues and Decision Memorandum.\3\ 
The Issues and Decision Memorandum is a public document and is on file 
electronically via ACCESS, which 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/frnotices">https://access.trade.gov/frnotices</a>.
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    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination of the Countervailing Duty 
Investigation of Oleoresin Paprika from India,'' 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 oleoresin paprika from 
India. 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.

Verification

    As provided in section 782(i) of the Act, in April 2026, Commerce 
conducted verification of the subsidy information reported by Mane 
Kancor Ingredients Private Limited (Mane Kancor) and Synthite 
Industries Pvt. Ltd (Synthite).\4\ We conducted the verifications using 
standard verification procedures, including an examination of relevant 
sales and accounting records, and original source documents.
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    \4\ See Memoranda, ``Verification of the Questionnaire Responses 
of Synthite Industries Pvt. Ltd,'' dated June 29, 2026; and 
``Verification of the Questionnaire Responses of Mane Kancor 
Ingredients Private Limited,'' dated June 29, 2026.
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Final Affirmative Determination of Critical Circumstances, In Part

    In the Preliminary Determination, in accordance with section 703(e) 
of the Act, Commerce found that critical circumstances do not exist for 
Mane Kancor and all other producers or exporters of oleoresin paprika 
from India, except for Synthite, for which Commerce found that critical 
circumstances exist. In this final determination, Commerce has 
continued to find that critical circumstances do not exist for Mane 
Kancor and all other producers or exporters of oleoresin paprika from 
India, except for Synthite, for which critical circumstances exist, 
pursuant to section 705(a)(3) of the Act and 19 CFR 351.206. For a 
discussion of Commerce's critical circumstances analysis, see the 
Issues and Decision Memorandum.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs that were submitted by interested parties 
in this investigation are addressed in the Issues and Decision 
Memorandum. For the list of the issues raised by parties, and to which 
we responded in the Issues and Decision Memorandum, see Appendix II to 
this notice.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found 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.\5\ For a full description 
of the methodology underlying our final determination, see the Issues 
and Decision Memorandum.
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    \5\ 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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Changes Since the Preliminary Determination

    Based on our review and analysis of the information received during 
verification and comments received from parties, for this final 
determination, we made certain changes

[[Page 54301]]

to the countervailable subsidy rate calculations for Mane Kancor and 
Synthite, and for all other producers/exporters. For a discussion of 
these changes, see the Issues and Decision Memorandum.

All-Others Rate

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated an individual estimated countervailable subsidy rate for the 
two mandatory respondents, Mane Kancor and Synthite. Section 
705(c)(5)(A)(i) of the Act states that, for companies not individually 
investigated, 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.
    In this investigation, we continue to calculate individual 
estimated countervailable subsidy rates for Mane Kancor and Synthite 
that are not zero, de minimis, or based entirely on facts otherwise 
available. We, therefore, continue to calculate the all-others rate 
using a weighted average of the individual estimated subsidy rates 
calculated for the examined respondents (Mane Kancor and Synthite) 
using each company's publicly-ranged sales value for their exports to 
the United States of subject merchandise,\6\ in accordance with section 
705(c)(5)(A)(i) of the Act.
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    \6\ Pursuant to 19 CFR 351.109(f)(2)(ii), 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 
quantities 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 
Memorandum, ``Calculation of Subsidy Rate for All Others,'' dated 
concurrently with this notice.
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Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist for the period April 1, 2024, through March 31, 
2025:

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                                                            Subsidy rate
                          Company                              (percent
                                                             ad valorem)
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Mane Kancor Ingredients Private Limited...................         18.67
Synthite Industries Pvt. Ltd..............................         25.42
All Others................................................         21.90
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Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties 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).

Suspension of Liquidation

    The provisional measures in this investigation expired on June 6, 
2026. Because Commerce has reached an affirmative final determination, 
suspension of liquidation will continue with respect to all applicable 
entries of subject merchandise, as described in Appendix I of this 
notice, which were entered, or withdrawn from warehouse, for 
consumption on or after February 6, 2026, the date of publication of 
the Preliminary Determination in the Federal Register, through June 5, 
2026. Because Commerce found that critical circumstances exist with 
respect to Synthite, pursuant to section 735(c)(4)(B) of the Act, 
suspension of liquidation will continue with respect to all applicable 
entries of subject merchandise from Synthite, as described in Appendix 
I of this notice, which were entered, or withdrawn from warehouse, for 
consumption on or after November 8, 2025, which is 90 days before the 
date of publication of the Preliminary Determination in the Federal 
Register, through June 5, 2026.
    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 oleoresin paprika in the amounts indicated above. Pursuant to 
section 705(c)(2) of the Act, 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 
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 oleoresin 
paprika 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 after this final determination, whether the domestic 
industry in the United States is materially injured, or threatened with 
material injury, by reason of import of oleoresin paprika from India. 
In addition, we are making available to the ITC all non-privileged and 
nonproprietary 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 an 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 posted 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 the subject merchandise that is entered, or withdrawn 
from warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as discussed above in the ``Suspension of 
Liquidation'' section.

Administrative Protective Order

    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 pursuant to sections 
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).

    Dated: August 17, 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

[[Page 54302]]

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 Issues and Decision Memorandum

I. Summary
II. Background
III. Final Affirmative Determination of Critical Circumstances, in 
Part
IV. Subsidies Valuation
V. Changes Since the Preliminary Determination
VI. Analysis of Programs
VII. Discussion of the Issues
    Comment 1: Whether to Tie the Advanced Authorization Program 
(AAP) Import Duty Exemptions to all Oleoresin Paprika Blends 
Regardless of Origin
    Comment 2: Whether to Tie the Export-Oriented Units (EOU) 
Program to Total Export Sales
    Comment 3: Whether to Change the Time Frame Used for the 
Critical Circumstances Massive Import Analysis
    Comment 4: Whether to Correct a Ministerial Error in the 
Calculation of Mane Kancor's Total Net Countervailable Subsidy Rate
    Comment 5: Whether to Refer Information to U.S. Customs and 
Border Protection (CBP) and Establish a Certification Process
    Comment 6: Whether the Remission of Duties and Taxes on Export 
Products Scheme (RoDTEP) Is Countervailable
    Comment 7: Whether the Export Promotion of Capital Goods Scheme 
(EPCGS) Is Countervailable
    Comment 8: Whether the Manufacture and Other Operations in 
Warehouse Regulations (MOOWR) Is Countervailable
    Comment 9: Whether the Export Oriented Unit (EOU) Program Is 
Countervailable
    Comment 10: Whether the AAP Is Countervailable
VIII. Recommendation

[FR Doc. 2026-17048 Filed 8-20-26; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on August 21, 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.