[Federal Register Volume 89, Number 208 (Monday, October 28, 2024)]
[Notices]
[Pages 85502-85505]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-24952]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-921]


Frozen Warmwater Shrimp From India: Final Affirmative 
Countervailing Duty Determination

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 frozen warmwater shrimp (shrimp) from India. The period of 
investigation (POI) is April 1, 2022, through March 31, 2023.

DATES: Applicable October 28, 2024.

FOR FURTHER INFORMATION CONTACT: Benjamin Nathan, AD/CVD Operations, 
Office II, Enforcement and Compliance,

[[Page 85503]]

International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
3834.

SUPPLEMENTARY INFORMATION: 

Background

    On April 1, 2024, Commerce published the 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 
countervailing duty (CVD) determination with the final antidumping duty 
determination.\2\ Commerce invited parties to comment on the 
Preliminary Determination.\3\ On July 19, 2024, Commerce released its 
Post-Preliminary Decision.\4\ On July 22, 2024, Commerce tolled certain 
deadlines in this administrative proceeding by seven days.\5\ The 
deadline for the final determination is now October 21, 2024.
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    \1\ See Frozen Warmwater Shrimp from India: Preliminary 
Affirmative Determination of Countervailable Subsidies, and 
Alignment of Final Determination With the Final Antidumping Duty 
Determination, 89 FR 22386 (April 1, 2024) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
    \2\ See Preliminary Determination, 89 FR at 22386.
    \3\ Id.
    \4\ See Memorandum, ``Post Preliminary Analysis,'' dated July 
19, 2024.
    \5\ 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 
Preliminary Determination, see the Issues and Decision Memorandum.\6\ 
The Issues and 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 Issues and Decision Memorandum can 
be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \6\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination of the Countervailing Duty 
Investigation of Frozen Warmwater Shrimp from India,'' dated 
concurrently with, and hereby adopted by, this notice (Issues and 
Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are shrimp from India. 
For a complete description of the scope of the 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.

Verification

    As provided in section 782(i) of the Act, in July and August 2024, 
Commerce verified all information reported by Devi Sea Foods Limited 
(Devi), Sandhya Aqua Exports Private Limited (Sandhya), and the 
Government of India (GOI). We used standard verification procedures, 
including an examination of relevant account records and original 
source documents provided by the respondents.\7\
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    \7\ See Memoranda, ``Verification of the Questionnaire Responses 
of the Government of India,'' dated August 29, 2024; ``Verification 
of the Questionnaire Responses of Devi Seafoods Private Limited,'' 
dated August 29, 2024; and ``Verification of the Questionnaire 
Responses of Sandhya Aqua Exports Private Limited.,'' dated August 
29, 2024.
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Analysis of Subsidy Programs and Comments Received

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

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found to be 
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.\8\ For a full 
description of the methodology underlying our final determination, see 
the Issues and Decision Memorandum.
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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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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 to the countervailable subsidy 
rate calculations for Devi, Sandhya, 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, Devi and Sandhya. 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 total 
net countervailable subsidy rates for Devi and Sandhya 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 (Devi and Sandhya) using each company's publicly-
ranged sales value for their exports to the United States of subject 
merchandise,\9\ in accordance with section 705(c)(5)(A)(i) of the Act.
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    \9\ 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, e.g., Ball Bearings and Parts Thereof from France, Germany, 
Italy, Japan, and the United Kingdom: Final Results of Antidumping 
Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010); see also Forged Steel Fluid End Blocks from 
Italy: Preliminary Affirmative Countervailing Duty Determination, 
and Alignment of Final Determination with Final Antidumping Duty 
Determination, 85 FR 31460, 31461 (May 26, 2020), unchanged in 
Forged Steel Fluid End Blocks from Italy: Final Affirmative 
Countervailing Duty Determination, 85 80022, 80023 (December 11, 
2020).
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Final Determination

    Commerce determines that the following estimated net 
countervailable subsidy rates exist for the period April 1, 2022, 
through March 31, 2023:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
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Devi Sea Foods Limited \10\.............................            5.87
Sandhya Aqua Exports Private Limited \11\...............            5.63

[[Page 85504]]

 
All Others..............................................            5.77
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Disclosure
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    \10\ Commerce continues to determine that Devi is cross owned 
with Devi Sea Foods Inc, Devee Horizon LLP, Devee Power Corporation 
Limited, and Devee Superior Feeds Limited. See Preliminary 
Determination PDM at 9; see also Memorandum, ``Post-Preliminary 
Analysis,'' dated July 19, 2024, at 5-6.
    \11\ Commerce continues to determine that Sandhya is cross owned 
with Neeli Sea Foods Private Limited, Vijay Aqua Processors Private 
Limited, and Neeli Aqua Farms. See Preliminary Determination PDM at 
9.
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    Commerce intends to disclose its calculations 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 the publication of this notice in the Federal 
Register, in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S. 
Customs and Border Protection (CBP) to collect cash deposits and 
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 April 1, 2024, the date of 
publication of the Preliminary Determination in the Federal Register. 
In accordance with section 703(d) of the Act, we instructed CBP to 
discontinue the suspension of liquidation of all entries of subject 
merchandise entered or withdrawn from warehouse, on or after July 30, 
2024, but to continue the suspension of liquidation of all entries of 
subject merchandise on or before July 29, 2024.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order, reinstate the suspension of liquidation under section 706(a) of 
the Act, and require a cash deposit of estimated countervailing duties 
for such entries of subject merchandise 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 shrimp 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, 
whether the domestic industry in the United States is materially 
injured, or threated with material injury, by reason of import of 
shrimp from India. In addition, we are making available to the ITC all 
non-privileged and non-proprietary information in our files, provided 
the ITC confirms that it will not disclose such information, either 
publicly or under 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 will be refunded. If the ITC determines that such injury does 
exist, Commerce will issue a countervailing duty order directing CBP to 
assess, upon further instruction by Commerce, countervailing duties on 
all imports of the subject merchandise that are entered, or withdrawn, 
for consumption on or after the effective date of the suspension of 
liquidation, as discussed above in the ``Continuation of Suspension of 
Liquidation'' section.

Administrative Protective Order

    This notice will serve as the only reminder to parties subject to 
the 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: October 21, 2024.
Ryan Majerus,
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 scope of this investigation includes certain frozen 
warmwater shrimp and prawns whether wild-caught (ocean harvested) or 
farm-raised (produced by aquaculture), head-on or head-off, shell-on 
or peeled, tail-on or tail-off, deveined or not deveined, cooked or 
raw, or otherwise processed in frozen form. ``Tails'' in this 
context means the tail fan, which includes the telson and the 
uropods.
    The frozen warmwater shrimp and prawn products included in the 
scope, regardless of definitions in the Harmonized Tariff Schedule 
of the United States (HTSUS), are products which are processed from 
warmwater shrimp and prawns through freezing and which are sold in 
any count size.
    The products described above may be processed from any species 
of warmwater shrimp and prawns. Warmwater shrimp and prawns are 
generally classified in, but are not limited to, the Penaeidae 
family. Some examples of the farmed and wild-caught warmwater 
species include, but are not limited to, whiteleg shrimp (Penaeus 
vannemei), banana prawn (Penaeus merguiensis), fleshy prawn (Penaeus 
chinensis), giant river prawn (Macrobrachium rosenbergii), giant 
tiger prawn (Penaeus monodon), redspotted shrimp (Penaeus 
brasiliensis), southern brown shrimp (Penaeus subtilis), southern 
pink shrimp (Penaeus notialis), southern rough shrimp (Trachypenaeus 
curvirostris), southern white shrimp (Penaeus schmitti), blue shrimp 
(Penaeus stylirostris), western white shrimp (Penaeus occidentalis), 
and Indian white prawn (Penaeus indicus).
    Frozen shrimp and prawns that are packed with marinade, spices 
or sauce are included in the scope. In addition, food preparations, 
which are not ``prepared meals,'' that contain more than 20 percent 
by weight of shrimp or prawn are also included in the scope.
    Excluded from the scope are: (1) breaded shrimp and prawns 
(HTSUS subheading 1605.20.10.20); (2) shrimp and prawns generally 
classified in the Pandalidae family and commonly referred to as 
coldwater shrimp, in any state of processing; (3) fresh shrimp and 
prawns whether shell-on or peeled (HTSUS subheadings 0306.36.0020 
and 0306.36.0040); (4) shrimp and prawns in prepared meals (HTSUS 
subheading 1605.20.05.10); (5) dried shrimp and prawns; (6) canned 
warmwater shrimp and prawns (HTSUS subheading 1605.20.10.40); (7) 
certain dusted shrimp; and (8) certain battered shrimp. Dusted 
shrimp is a shrimp-based product: (1) that is produced from fresh 
(or thawed-from-frozen) and peeled shrimp; (2) to which a 
``dusting'' layer of rice or wheat flour of at least 95 percent 
purity has been applied; (3) with the entire surface of the shrimp 
flesh thoroughly and evenly coated with the flour; (4) with the 
nonshrimp

[[Page 85505]]

content of the end product constituting between four and 10 percent 
of the product's total weight after being dusted, but prior to being 
frozen; and (5) that is subjected to IQF freezing immediately after 
application of the dusting layer. Battered shrimp is a shrimp-based 
product that, when dusted in accordance with the definition of 
dusting above, is coated with a wet viscous layer containing egg 
and/or milk, and par-fried.
    The products covered by the scope are currently classified under 
the following HTSUS subheadings: 0306.17.0004, 0306.17.0005, 
0306.17.0007, 0306.17.0008, 0306.17.0010, 0306.17.0011, 
0306.17.0013, 0306.17.0014, 0306.17.0016, 0306.17.0017, 
0306.17.0019, 0306.17.0020, 0306.17.0022, 0306.17.0023, 
0306.17.0025, 0306.17.0026, 0306.17.0028, 0306.17.0029, 
0306.17.0041, 0306.17.0042, 1605.21.1030, and 1605.29.1010. These 
HTSUS subheadings are provided for convenience and for customs 
purposes only and are not dispositive, but rather the written 
description of the scope is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Use of Facts Available
IV. Subsidies Valuation
V. Analysis of Cross-Ownership
VI. Changes Since the Preliminary Determination
VII. Analysis of Programs
VIII. Discussion of the Issues
    Comment 1: Whether Commerce Erred in Its Export Promotion of 
Capital Goods Scheme (EPCGS) Calculation for Sandhya
    Comment 2: Whether Commerce Erred in its Productivity-Linked 
Incentive (PLI) Calculation
    Comment 3: Whether Commerce Erred in its Calculation of The 
Andhra Pradesh Power Subsidy for Aquaculture Farmers (PSA)
    Comment 4: Whether Commerce Erred in Calculating the Grants for 
Food Processing
    Comment 5: Whether Commerce Erred in Calculating the Pre-
Shipment and Post-Shipment Export Financing Programs (EFPPS, EF2, 
and EF3)
    Comment 6: Whether the EFPPS Program is Countervailable
    Comment 7: Whether Section 771b of the Act is Applicable to this 
Investigation
    Comment 8: Whether the Duty Drawback Program (DDB) is 
Countervailable
    Comment 9: Whether the Remission of Duties and Taxes on Export 
Products (RoDTEP) is Countervailable
    Comment 10: Whether Neeli Sea Foods Private Limited (Neeli) 
Received Any Export Financing (EFPPS, EF2, or EF3) Benefit During 
the POI
IX. Recommendation

[FR Doc. 2024-24952 Filed 10-25-24; 8:45 am]
BILLING CODE 3510-DS-P