[Federal Register Volume 89, Number 178 (Friday, September 13, 2024)]
[Notices]
[Pages 74908-74910]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-20861]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-923]


2,4-Dichlorophenoxyacetic Acid From India: Preliminary 
Affirmative Countervailing Duty Determination 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 2,4-Dichlorophenoxyacetic Acid (2,4-D) from 
India. The period of investigation is January 1, 2023, through December 
31, 2023. Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable September 13, 2024.

FOR FURTHER INFORMATION CONTACT: Harrison Tanchuck or George McMahon, 
AD/CVD Operations, Office VI, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-7421 or (202) 
482-1167, 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 countervailing duty (CVD) 
investigation on April 30, 2024.\1\ On June 10, 2024, Commerce 
postponed the preliminary determination of this investigation until 
September 3, 2024.\2\ On July 22, 2024, Commerce tolled certain 
deadlines in this administrative proceeding by seven days.\3\ The 
deadline for the preliminary determination is now September 9, 2024.
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    \1\ See 2,4-Dichlorophenoxyacetic Acid from the People's 
Republic of China and India: Initiation of Countervailing Duty 
Investigations, 89 FR 34205 (April 30, 2024) (Initiation Notice).
    \2\ See 2,4-Dichlorophenoxyacetic Acid from the People's 
Republic of China and India: Postponement of Preliminary 
Determinations in the Countervailing Duty Investigations, 89 FR 
48891 (June 10, 2024).
    \3\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 22, 2024.
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary

[[Page 74909]]

Decision Memorandum.\4\ 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 https://access.trade.gov. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Countervailing Duty Investigation 
of 2,4-Dichlorophenoxyacetic Acid 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 2,4-D 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,\5\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\6\ Commerce issued a 
supplemental questionnaire on June 4, 2024, requesting clarification 
regarding two of the Harmonized Tariff Schedule of the United States 
(HTSUS) subheadings under which the subject merchandise may also be 
classified.\7\ On June 11, 2024, Corteva Agriscience LLC (the 
petitioner) confirmed that the HTSUS subheadings petitioner intended to 
include were as follows: 3808.93.0500 and 3808.93.1500.\8\ As a result, 
Commerce is preliminarily modifying the scope language. The scope as 
described in Appendix I incorporates the modified language.
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    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \6\ See Initiation Notice, 89 FR at 34206.
    \7\ See Commerce's Letter, ``Scope Supplemental Questions,'' 
dated June 4, 2024.
    \8\ See Petitioner's Letter, ``Response to Scope Supplemental 
Questions,'' dated June 11, 2024.
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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.\9\ For a full description of the methodology underlying our 
preliminary determination, see the Preliminary Decision Memorandum.
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    \9\ 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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    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, because it finds that the Government of India 
did not act to the best of its ability to respond to Commerce's 
requests for information, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\10\ 
For further information, see the ``Use of Facts Otherwise Available and 
Adverse Inferences'' section in the Preliminary Decision Memorandum.
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    \10\ See sections 776(a) and (b) of the Act.
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Alignment

    In accordance with section 705(a)(1) of the Act and 19 CFR 
351.210(b)(4), Commerce is aligning the final CVD determination in this 
investigation with the final determination in the companion less-than-
fair-value (LTFV) investigation of 2,4-D from India based on a request 
made by the petitioner.\11\ 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 January 21, 2025, 
unless postponed.\12\
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    \11\ See Petitioner's Letter, ``Petitioner's Request for 
Alignment of Final Determinations with Deadline in Concurrent CVD 
Investigations,'' dated July 24, 2024.
    \12\ See 2,4-Dichlorophenoxyacetic Acid from India and the 
People's Republic of China: Postponement of Preliminary 
Determinations in the Less-Than-Fair-Value Investigations, 89 FR 
67420 (August 20, 2024).
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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 Atul Limited and Meghmani Organics 
Limited 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.\13\
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    \13\ 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 ``Preliminary Determination Calculation of Subsidy 
Rate for Non-Selected Companies Under Review,'' dated concurrently 
with this notice.
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Preliminary Determination

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

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
------------------------------------------------------------------------
Atul Limited............................................            5.29
Meghmani Organics Limited \14\..........................            3.28
All Others..............................................            4.13
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Suspension of Liquidation
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    \14\ As discussed in the Preliminary Decision Memorandum, 
Commerce preliminarily finds the following companies to be cross 
owned with Meghmani Organics Limited: Epigral Limited; and Matangi 
Industries LLP.
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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 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).

[[Page 74910]]

    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.

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. A timeline for the submission of case briefs and 
written comments will be notified to interested parties at a later 
date. 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.\15\ 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.\16\
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    \15\ 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).
    \16\ See 19 351.309(c)(2) and (d)(2).
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    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their brief that should be limited to five pages 
total, including footnotes. In this investigation, we instead request 
that interested parties provide at the beginning of their briefs a 
public executive summary for each issue raised in their briefs.\17\ 
Further, we request that interested parties limit their public 
executive summary of each issue to no more than 450 words, not 
including citations. We intend to use the public 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).\18\
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    \17\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \18\ 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 via ACCESS 
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 and whether any participant is a foreign 
national, and a list of the issues to be discussed. Oral presentations 
at the hearing will be limited to issues raised in the briefs. If a 
request for a hearing is made, parties will be notified of the time and 
date for the hearing.\19\ Parties should confirm by telephone the date, 
time, and location of the hearing two days before the scheduled date.
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    \19\ See 19 CFR 351.310(d).
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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 2, 4-D 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)(1) of the Act and 19 CFR 351.205(c).

    Dated: September 9, 2024.
Abdelali Elouaradia,
Deputy 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 C8H6 Cl2O3.
    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 Preliminary Decision Memorandum

I. Summary
II. Background
III. Injury Test
IV. Diversification of India's Economy
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Subsidies Valuation
VII. Benchmarks and Interest Rates
VIII. Analysis of Programs
IX. Recommendation

 [FR Doc. 2024-20861 Filed 9-12-24; 8:45 am]
 BILLING CODE 3510-DS-P