[Federal Register Volume 85, Number 230 (Monday, November 30, 2020)]
[Notices]
[Pages 76524-76526]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26332]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-821-825]


Phosphate Fertilizers From the Russian Federation: Preliminary 
Affirmative Countervailing Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of phosphate fertilizers from the Russian Federation 
(Russia). The period of investigation is January 1, 2019, through 
December 31, 2019. Interested parties are invited to comment on this 
preliminary determination.

DATES: Applicable November 30, 2020.

FOR FURTHER INFORMATION CONTACT: George Ayache or William Horn, AD/CVD 
Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-2623 or (202) 
482-4868, 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 23, 
2020.\1\ On September 2, 2020, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
November 23, 2020.\2\ For a complete description of the 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 as 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 http://access.trade.gov. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be accessed directly at http://enforcement.trade.gov/frn/. The signed 
and electronic versions of the Preliminary Decision Memorandum are 
identical in content.
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    \1\ See Phosphate Fertilizers from the Kingdom of Morocco and 
the Russian Federation: Initiation of Countervailing Duty 
Investigations, 85 FR 44505 (July 23, 2020) (Initiation Notice).
    \2\ See Phosphate Fertilizers from the Kingdom of Morocco and 
the Russian Federation: Postponement of Preliminary Determinations 
in the Countervailing Duty Investigations, 85 FR 54535 (September 2, 
2020).
    \3\ See Memorandum, ``Decision Memorandum for the Affirmative 
Preliminary Determination of the Countervailing Duty Investigation 
of Phosphate Fertilizers from the Russian Federation,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are phosphate 
fertilizers from Russia. For a complete description of the scope of 
this investigation, see Appendix I.

[[Page 76525]]

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 
party commented on the scope of the investigation as it appeared in the 
Initiation Notice. Therefore, no changes were made to the scope of the 
investigation.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \5\ See Initiation Notice.
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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 
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\
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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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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 Industrial Group Phosphorite LLC and 
Joint Stock Company Apatit 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.\7\
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    \7\ 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., Cast Iron Soil Pipe Fittings from the People's Republic 
of China: Final Affirmative Countervailing Duty Determination, 83 FR 
32075 (July 11, 2018). 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, please see the All-Others' Rate Calculation Memorandum.
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Preliminary Determination

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

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Industrial Group Phosphorite LLC \8\....................           72.50
Joint Stock Company Apatit \9\..........................           20.94
All-Others..............................................           32.92
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Suspension of Liquidation
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    \8\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Industrial Group Phosphorite LLC: Mineral and Chemical Company 
EuroChem, JSC; NAK Azot, JSC; EuroChem Northwest, JSC; Joint Stock 
Company Kovdorksy GOK; EuroChem-Energo, LLC; EuroChem-Usolsky Potash 
Complex, LLC; EuroChem-BMU, LLC; JSC Nevinnomyssky Azot; and 
EuroChem Trading Rus, LLC.
    \9\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Joint Stock Company Apatit: PhosAgro PJSC; PhosAgro[hyphen]Belgorod 
LLC; PhosAgro[hyphen]Don LLC; PhosAgro[hyphen]Kuban LLC; 
PhosAgro[hyphen]Kursk LLC; PhosAgro[hyphen]Lipestk LLC; 
PhosAgro[hyphen]Orel LLC; PhosAgro[hyphen] Stavropol LLC; 
PhosAgro[hyphen]Volga LLC; PhosAgro[hyphen]SeveroZapad LLC; 
PhosAgro[hyphen] Tambov LLC; and Martynovsk AgrokhimSnab LLC.
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    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 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 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 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).

Verification

    Commerce is currently unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. Accordingly, we intend to take additional steps in lieu 
of on-site verification. Commerce will notify interested parties of any 
additional documentation or information required.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. Interested parties 
will be notified of the timeline for the submission of such case briefs 
and written comments at a later date. Rebuttal briefs, limited to 
issues raised in case briefs, may be submitted no later than seven days 
after the deadline date for case briefs.\10\ Commerce has modified 
certain of its requirements for serving documents containing business 
proprietary information until further notice.\11\ Pursuant to 19 CFR 
351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal 
briefs in this investigation are encouraged to submit with each 
argument: (1) A statement of the issue; (2) a brief summary of the 
argument; and (3) a table of authorities.
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    \10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements). See also Temporary Rule Modifying AD/CVD 
Service Requirements Due to COVID-19, 85 FR 17006, 17007 (March 26, 
2020).
    \11\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
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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.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
determination. If Commerce's final determination is affirmative, the 
ITC will make its final injury determination before the later of 120 
days after the date of Commerce's preliminary determination or 45 days 
after its final determination.

[[Page 76526]]

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: November 23, 2020.
Joseph A. Laroski Jr.,
Deputy Assistant Secretary for Policy and Negotiations.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is phosphate 
fertilizers in all physical forms (i.e., solid or liquid form), with 
or without coating or additives such as anti-caking agents. 
Phosphate fertilizers in solid form are covered whether granular, 
prilled (i.e., pelletized), or in other solid form (e.g., powdered).
    The covered merchandise includes phosphate fertilizers in the 
following forms: ammonium dihydrogenorthophosphate or monoammonium 
phosphate (MAP), chemical formula NH4H2PO4; diammonium 
hydrogenorthophosphate or diammonium phosphate (DAP), chemical 
formula (NH4)2HPO4; normal superphosphate (NSP), also known as 
ordinary superphosphate or single superphosphate, chemical formula 
Ca(H2PO4)2[Cdot]CaSO4; concentrated superphosphate, also known as 
double, treble, or triple superphosphate (TSP), chemical formula 
Ca(H2PO4)2[Cdot]H2O; and proprietary formulations of MAP, DAP, NSP, 
and TSP.
    The covered merchandise also includes other fertilizer 
formulations incorporating phosphorous and non-phosphorous plant 
nutrient components, whether chemically-bonded, granulated (e.g., 
when multiple components are incorporated into granules through, 
e.g., a slurry process), or compounded (e.g., when multiple 
components are compacted together under high pressure), including 
nitrogen, phosphate, sulfur (NPS) fertilizers, nitrogen, 
phosphorous, potassium (NPK) fertilizers, nitric phosphate (also 
known as nitrophosphate) fertilizers, ammoniated superphosphate 
fertilizers, and proprietary formulations thereof that may or may 
not include other nonphosphorous plant nutrient components. For 
phosphate fertilizers that contain non-phosphorous plant nutrient 
components, such as nitrogen, potassium, sulfur, zinc, or other non-
phosphorous components, the entire article is covered, including the 
non-phosphorous content, provided that the phosphorous content 
(measured by available diphosphorous pentaoxide, chemical formula 
P2O5) is at least 5% by actual weight.
    Phosphate fertilizers that are otherwise subject to this 
investigation are included when commingled (i.e., mixed or blended) 
with phosphate fertilizers from sources not subject to this 
investigation. Phosphate fertilizers that are otherwise subject to 
this investigation are included when commingled with substances 
other than phosphate fertilizers subject to this investigation 
(e.g., granules containing only non-phosphate fertilizers such as 
potash or urea). Only the subject component of such commingled 
products is covered by the scope of this investigation. The 
following products are specifically excluded from the scope of this 
investigation:
    (1) ABC dry chemical powder preparations for fire extinguishers 
containing MAP or DAP in powdered form;
    (2) industrial or technical grade MAP in white crystalline form 
with available P2O5 content of at least 60% by actual weight;
    (3) industrial or technical grade diammonium phosphate in white 
crystalline form with available P2O5 content of at least 50% by 
actual weight;
    (4) liquid ammonium polyphosphate fertilizers;
    (5) dicalcium phosphate, chemical formula CaHPO4;
    (6) monocalcium phosphate, chemical formula CaH4P2O8;
    (7) trisodium phosphate, chemical formula Na3PO4;
    (8) sodium tripolyphosphate, chemical formula Na5P3O10;
    (9) prepared baking powders containing sodium bicarbonate and 
any form of phosphate;
    (10) animal or vegetable fertilizers not containing phosphate 
fertilizers otherwise covered by the scope of this investigation;
    (11) phosphoric acid, chemical formula H3PO4.
    The Chemical Abstracts Service (CAS) numbers for covered 
phosphate fertilizers include, but are not limited to: 7722-76-1 
(MAP); 7783-28-0 (DAP); and 65996-95-4 (TSP). The covered products 
may also be identified by Nitrogen-Phosphate-Potash composition, 
including but not limited to: NP 11-52-0 (MAP); NP 18-46-0 (DAP); 
and NP 0-46-0 (TSP).
    The covered merchandise is currently classified in the 
Harmonized Tariff Schedule of the United States (HTSUS) at 
subheadings 3103.11.0000; 3103.19.0000; 3105.20.0000; 3105.30.0000; 
3105.40.0010; 3105.40.0050; 3105.51.0000; and 3105.59.0000. 
Phosphate fertilizers subject to this investigation may also enter 
under subheadings 3103.90.0010, 3105.10.0000, 3105.60.0000, 
3105.90.0010, and 3105.90.0050. Although the HTSUS subheadings and 
CAS registry numbers are provided for convenience and customs 
purposes, 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. Subsidies Valuation
V. Benchmarks and Interest Rates
VI. Analysis of Programs
VII. Recommendation

[FR Doc. 2020-26332 Filed 11-27-20; 8:45 am]
BILLING CODE 3510-DS-P