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[Federal Register Volume 90, Number 28 (Wednesday, February 12, 2025)]
[Notices]
[Pages 9413-9415]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-02548]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-925]

Melamine From India: Final Affirmative Countervailing Duty 
Determination and Critical Circumstances 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 melamine from India. This investigation covers one mandatory 
respondent, Gujarat State Fertilizers and Chemicals Limited (Gujarat 
Fertilizers), and the period (POI) January 1, 2023, through December 
31, 2023.

DATES: Applicable February 12, 2025.

FOR FURTHER INFORMATION CONTACT: Paul Kebker or Dylan Hill, AD/CVD 
Operations, Office IV, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-2254 or (202) 482-1197, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On July 22, 2024, Commerce published in the Federal Register its 
Preliminary Determination in the countervailing duty (CVD) 
investigation of melamine from India.\1\ Also on July 22, 2024, 
Commerce tolled certain deadlines in this investigation by seven 
days.\2\ On October 16, 2024, Commerce issued its post-preliminary 
determination regarding new subsidy allegations.\3\
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    \1\ See Melamine from India: Preliminary Affirmative 
Countervailing Duty Determination, Preliminary Affirmative Critical 
Circumstances Determination, and Alignment of Final Determination 
with the Final Antidumping Duty Determination, 89 FR 59055 (July 22, 
2024) (Preliminary Determination), and accompanying Preliminary 
Decision Memorandum (PDM).
    \2\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 22, 2024.
    \3\ See Memorandum, ``Post-Preliminary Decision Memorandum,'' 
dated October 16, 2024 (Post-Preliminary Memorandum).
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    Because Commerce aligned the deadline for this final determination 
with the deadline for the final determination in the less-than-fair-
value (LTFV) investigation of melamine from India, the deadline for the 
final determination is now February 6, 2025.\4\
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    \4\ See Preliminary Determination, 89 FR at 59056; see also 
Melamine from India: Postponement of Final Determination of Sales at 
Less Than Fair Value Investigation, 89 FR 84533 (October 23, 2024).
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    For a complete description of the events that occurred after 
Commerce issued the Preliminary Determination, see the Issues and 
Decision Memorandum.\5\ The Issues and Decision Memorandum is a public 
document that is on file electronically via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized Electronic 
Service System (ACCESS).

[[Page 9414]]

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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    \5\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination of the Countervailing Duty 
Investigation of Melamine 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 melamine from India. 
For a complete description of the scope of the investigation, see 
Appendix I to this notice.

Scope Comments

    We received no comments from interested parties on the scope of the 
investigation as it appeared in the Preliminary Determination.\6\ 
Therefore, we made no changes to the scope of the investigation.
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    \6\ See Preliminary Determination, 89 FR at 59055 and Appendix 
I.
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Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), in October 2024, Commerce conducted a verification of the 
information reported by Gujarat Fertilizers and the Government of India 
(GOI). As explained in the accompanying Issues and Decision Memorandum, 
Commerce was not able to verify the information provided by Gujarat 
Fertilizers due to its lack of cooperation at verification. Commerce 
was able to complete its verification of the GOI. Commerce used 
standard verification procedures, including an examination of relevant 
documents provided at verification, in conducting its verification of 
the GOI.

Analysis of Subsidy Programs and Comments Received

    We have discussed the subsidy programs under investigation, and 
addressed the issues raised in interested parties' case and rebuttal 
briefs in the Issues and Decision Memorandum. For a list of the issues 
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 has determined that the program provides a 
subsidy, i.e., Commerce found that there was a financial contribution 
by an ``authority,'' the financial contribution provided a benefit to 
the recipient, and the subsidy is specific.\7\ In making this 
determination, Commerce relied on total adverse facts available (AFA) 
with respect to Gujarat Fertilizers based on its lack of cooperation at 
verification and partial AFA with respect to the GOI because it did not 
act to the best of its ability to respond to Commerce's requests for 
information.\8\ For a full description of the methodology underlying 
this final determination, including Commerce's application of AFA, see 
the Issues and Decision Memorandum.
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    \7\ 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.
    \8\ See sections 776(a) and (b) of the Act.
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Final Affirmative Determination of Critical Circumstances

    In accordance with sections 705(a)(2), and 776(a) and (b) of the 
Act, and 19 CFR 351.206,\9\ Commerce continues to find that critical 
circumstances exist with respect to imports of melamine from Gujarat 
Fertilizers and all other producers/exporters of melamine in India. For 
a full discussion of Commerce's critical circumstances determination, 
see the Issues and Decision Memorandum.
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    \9\ See Preliminary Determination PDM.
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Changes Since the Preliminary Determination and Post-Preliminary 
Analysis

    As noted above, we are now basing Gujarat Fertilizers' 
countervailable subsidy rate on total AFA. For a discussion of this 
change, see the Issues and Decision Memorandum.

All-Others Rate

    Section 705(c)(5)(A) of the Act provides that in a final 
determination, Commerce shall determine an estimated all-others rate 
for companies not individually examined equal to the weighted average 
of the estimated countervailable subsidy rates established for 
exporters and producers individually examined, excluding any zero or de 
minimis countervailable subsidy rates and any rates based entirely 
under section 776 of the Act (facts available). If the individual 
estimated countervailable subsidy rates established for all exporters 
and producers individually examined are zero, de minimis, or determined 
entirely under section 776 of the Act, section 705(c)(5)(A)(ii) of the 
Act provides that Commerce may use any reasonable method to establish 
an estimated all-others countervailable subsidy rate for exporters and 
producers not individually investigated, including averaging the 
weighted average countervailable subsidy rates determined for the 
exporters and producers individually investigated.
    Commerce determined Gujarat Fertilizers' estimated countervailable 
subsidy rate entirely under section 776 of the Act. Gujarat Fertilizers 
is the sole producer/exporter individually examined in this 
investigation and there are no other countervailable subsidy rates on 
the record. Given these facts, Commerce has determined that a 
reasonable method for establishing the estimated all-others 
countervailable subsidy rate is to assign Gujarat Fertilizers' 
estimated countervailable subsidy rate to all other producers and 
exporters.

Final Determination

    Commerce determines that the following estimated net 
countervailable subsidy rate exists for the period January 1, 2023, 
through December 31, 2023:

------------------------------------------------------------------------
                                                            Subsidy rate
                          Company                            (percent ad
                                                              valorem)
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Gujarat State Fertilizers and Chemicals Limited...........        276.06
All Others................................................        276.06
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Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to parties to the proceeding within five days of public 
announcement of this final determination 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 351.244(b).

Continuation of Suspension of Liquidation

    As a result of the Preliminary Determination, which included an 
affirmative critical circumstances determination, and pursuant to 
section 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 
Appendix I, entered, or withdrawn from warehouse, for consumption on or 
after April 23, 2024, which is 90 days prior to the date of publication 
of the Preliminary Determination in the Federal Register.\10\ In 
accordance with section 703(d) of the Act, on November 19, 2024, 
Commerce instructed CBP to discontinue the suspension of liquidation of 
all entries of subject merchandise entered or withdrawn from warehouse, 
on or after

[[Page 9415]]

November 19, 2024, but to continue the suspension of liquidation of all 
entries of subject merchandise on or before November 18, 2024.
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    \10\ See Preliminary Determination.
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    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, Commerce 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 subject merchandise in the amounts indicated in the table 
above. If the ITC determines that material injury, or threat of 
material injury, does not exist, this investigation will be terminated, 
and all estimated countervailing 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 melamine 
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 threatened with material injury, by reason of 
U.S. imports of melamine from India. Commerce is making available to 
the ITC all non-privileged and non-proprietary 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 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 from warehouse, 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

    In the event that the ITC issues a final negative injury 
determination, 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: February 6, 2025.
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 subject to this investigation is melamine 
(Chemical Abstracts Service (CAS) registry number 108-78-01, 
molecular formula C3 H6 N6). Melamine is also known as 2,4,6-
triamino-s-triazine; 1,3,5-Triazine-2,4,6-triamine; Cyanurotriamide; 
Cyanurotriamine; Cyanuramide; and by various brand names. Melamine 
is a crystalline powder or granule. All melamine is covered by the 
scope of this investigation irrespective of purity, particle size, 
or physical form. Melamine that has been blended with other products 
is included within this scope when such blends include constituent 
parts that have been intermingled, but that have not been chemically 
reacted with each other to produce a different product. For such 
blends, only the melamine component of the mixture is covered by the 
scope of this investigation. Melamine that is otherwise subject to 
this investigation is not excluded when commingled with melamine 
from sources not subject to this investigation. Only the subject 
component of such commingled products is covered by the scope of 
this investigation.
    The subject merchandise is provided for in subheading 
2933.61.0000 of the Harmonized Tariff Schedule of the United States 
(HTSUS). Although the HTSUS subheading and CAS registry number are 
provided for convenience and customs purposes, 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. Scope of the Investigation
IV. Determination of Critical Circumstances
V. Use of Facts Otherwise Available and Application of Adverse 
Inferences
VI. Discussion of the Issues
    Comment 1: Whether Duty Drawback (DDB) Program is a Non-
countervailable and World Trade Organization (WTO) Compliant Program
    Comment 2: Whether Commerce Incorrectly Countervailed the 
Remission of Duties and Taxes on Export Products (RoDTEP) Program
    Comment 3: Whether the Urea Subsidy Program (USP) is Tied to 
Non-Subject Merchandise
    Comment 4: Whether Commerce Improperly Applied Adverse Facts 
Available (AFA) to the Natural Gas at Less Than Adequate 
Remuneration (LTAR) Program
    Comment 5: Whether Commerce Improperly Terminated its 
Verification of Gujarat Fertilizers
    Comment 6: Whether Critical Circumstances Exist With Respect to 
Gujarat Fertilizers
VII. Recommendation

[FR Doc. 2025-02548 Filed 2-11-25; 8:45 am]
BILLING CODE 3510-DS-P
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