[Federal Register Volume 89, Number 208 (Monday, October 28, 2024)]
[Notices]
[Pages 85512-85514]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-24954]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-560-843]


Frozen Warmwater Shrimp From Indonesia: Final Negative 
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 not being provided to producers and 
exporters of frozen warmwater shrimp (shrimp) from Indonesia. The 
period of investigation is January 1, 2022, through December 31, 2022.

DATES: Applicable October 28, 2024.

FOR FURTHER INFORMATION CONTACT: Kelsie Hohenberger, AD/CVD Operations, 
Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-2517.

SUPPLEMENTARY INFORMATION:

Background

    On April 1, 2024, Commerce published its Preliminary Determination 
in the Federal Register and invited interested parties to comment.\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 this final countervailing duty (CVD) 
determination with the final antidumping duty (AD) determinations of 
frozen warmwater shrimp from Ecuador and Indonesia.\2\ On July 22, 
2024, Commerce tolled certain deadlines in this administrative 
proceeding by seven days.\3\ The deadline for the final determination 
is now October 21, 2024.
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    \1\ See Frozen Warmwater Shrimp from Indonesia: Preliminary 
Negative Countervailing Duty Determination, and Alignment of Final 
Determination With the Final Antidumping Duty Determination, 89 FR 
22383 (April 1, 2024) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum (PDM).
    \2\ Id., 89 FR 22384.
    \3\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 22, 2024.
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    A summary of the events that occurred since Commerce published the 
Preliminary Determination may be found in the Issues and Decision 
Memorandum.\4\ The Issues and Decision

[[Page 85513]]

Memorandum is a public document and is made available to the public 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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    \4\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Negative Determination in the Countervailing Duty 
Investigation of Frozen Warmwater Shrimp from Indonesia,'' dated 
concurrently with, and hereby adopted by, this notice (Issues and 
Decision Memorandum).
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Scope of the Investigation

    The merchandise covered by this investigation is shrimp from 
Indonesia. 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.

Verification

    As provided in section 782(i) of the Act, in May 2024, we conducted 
verifications of information submitted by the Government of Indonesia 
(GOI), PT. Bahari Makmur Sejati (BMS), PT. First Marine Seafoods (First 
Marine),\5\ and BMS and First Marine's unaffiliated farmer-suppliers 
for use in our final determination. We used standard verification 
procedures, including an examination of relevant accounting records and 
original source documents provided by the GOI, BMS, First Marine, and 
the farmer-suppliers.\6\
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    \5\ Commerce determined that First Marine is cross-owned with PT 
Khom Foods. Hereinafter, both companies are collectively referred to 
as First Marine, unless stated otherwise.
    \6\ See Memoranda, ``Verification of the Government of Indonesia 
Questionnaire Responses,'' dated August 19, 2024; ``Verification of 
the Questionnaire Responses of PT First Marine Seafoods,'' dated 
August 9, 2024; ``Verification of the Questionnaire Responses of PT. 
First Marine Seafoods' Unaffiliated Farmer-Supplier's Questionnaire 
Responses,'' dated August 9, 2024; ``Verification of the 
Questionnaire Responses of PT Bahari Makmur Sejati,'' dated August 
23, 2024; and ``Verification of the Questionnaire Responses of BMS's 
Unaffiliated Farmer-Suppliers,'' dated August 23, 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 that were submitted by interested parties 
in this investigation are discussed in the Issues and Decision 
Memorandum. For a list of the issues raised by interested parties and 
addressed 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.\7\ For a full 
description of the methodology underlying our final determination, see 
the Issues and Decision Memorandum.
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    \7\ 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 analysis of the comments received from interested 
parties and our verification findings, we made certain changes to the 
subsidy rate calculations for BMS. For a discussion of these changes, 
see the Issues and Decision Memorandum.

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                               Subsidy rate (percent ad
                  Company                              valorem)
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PT. Bahari Makmur Sejati \8\...............  0.20 (de minimis).
PT. First Marine Seafoods/PT Khom Foods \9\  0.71 (de minimis).
------------------------------------------------------------------------

Disclosure
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    \8\ As discussed in the PDM, Commerce determined that PT Bahari 
Makmur Sejati is cross-owned with input suppliers PT International 
Packaging Manufacturing and PT Total Pack Indonesia.
    \9\ As discussed in the PDM, Commerce determined that PT First 
Marine Seafoods is cross-owned with PT Khom Foods, a producer/
distributor of subject merchandise.
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    We intend to disclose to interested parties the calculations and 
analysis performed in this final determination within five days of any 
public announcement or, if there is no public announcement, within five 
days of the date of publication of this notice in accordance with 19 
CFR 351.224(b).

Suspension of Liquidation

    In the Preliminary Determination, the total net countervailable 
subsidy rates for the individually examined respondents were de minimis 
and, therefore, we did not suspend liquidation of entries of frozen 
warmwater shrimp from Indonesia.\10\ Because Commerce determines that 
no countervailable subsidies are being provided to the production or 
exportation of subject merchandise, Commerce will not direct U.S. 
Customs and Border Protection to suspend liquidation of any such 
entries.
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    \10\ See Preliminary Determination, 89 FR 22384.
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International Trade Commission (ITC) Notification

    In accordance with section 705(d) of the Act, Commerce will notify 
the ITC of our final determination that countervailable subsidies are 
not being provided to producers and exporters of shrimp from Indonesia. 
Because the final determination is negative, this proceeding is 
terminated in accordance with section 705(c)(2) of the Act.

Administrative Protective Order (APO)

    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).


[[Page 85514]]


    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 1605.21.1020); (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 
subheadings 1605.21.0500 and 1605.29.0500); (5) dried shrimp and 
prawns; (6) canned warmwater shrimp and prawns (HTSUS subheading 
1605.29.1040); and (7) certain battered shrimp. Battered 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 non-shrimp content of the 
end product constituting between four and ten percent of the 
product's total weight after being dusted, but prior to being 
frozen; and (5) that is subjected to individually quick frozen (IQF) 
freezing immediately after application of the dusting layer. When 
dusted in accordance with the definition of dusting above, the 
battered shrimp product is also 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. Changes from the Preliminary Determination
IV. Subsidies Valuation
V. Analysis of Programs
VI. Discussion of the Issues
    Comment 1: Whether Commerce Should Apply Adverse Facts Available 
(AFA) To Countervail the Provision of Water or Port Facilities to 
First Marine
    Comment 2: Whether Commerce Should Apply AFA To Countervail 
Export Financing From the Export-Import Bank of Indonesia (Eximbank)
    Comment 3: Whether Commerce Should Apply Total AFA to the GR 55/
2022 and Article 31E Income Tax Reduction Programs
    Comment 4: Whether Commerce Should Correct the Benefit 
Calculations Under the Government Regulation 55/2022 and Article 31E 
Income Tax Reduction Programs
    Comment 5: Whether Commerce Should Make Corrections to the Sales 
Denominators Used To Calculate the Ad Valorem Subsidy Rates
VII. Recommendation

[FR Doc. 2024-24954 Filed 10-25-24; 8:45 am]
BILLING CODE 3510-DS-P