89 FR 178 pgs. 74908-74910 - 2,4-Dichlorophenoxyacetic Acid From India: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
Type: NOTICEVolume: 89Number: 178Pages: 74908 - 74910
Pages: 74908, 74909, 74910Docket number: [C-533-923]
FR document: [FR Doc. 2024-20861 Filed 9-12-24; 8:45 am]
Agency: Commerce Department
Sub Agency: International Trade Administration
Official PDF Version: PDF Version
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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.
Footnotes:
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.
[top] For a complete description of the events that followed the initiation of this investigation, see the Preliminary
Footnotes:
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).
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.
Footnotes:
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.
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.
Footnotes:
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.
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.
Footnotes:
10 ? See sections 776(a) and (b) of the Act.
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
Footnotes:
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).
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
Footnotes:
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.
Preliminary Determination
Commerce preliminarily determines that the following estimated countervailable subsidy rates exist:
| Company | Subsidy rate (percent ad valorem) |
|---|---|
| Atul Limited | 5.29 |
| Meghmani Organics Limited? 14 | 3.28 |
| All Others | 4.13 |
Suspension of Liquidation
Footnotes:
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.
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
[top] 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).
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
Footnotes:
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).
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
Footnotes:
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.
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.
Footnotes:
19 ? See 19 CFR 351.310(d).
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