Certain Frozen Warmwater Shrimp From the People's Republic of China: Final Affirmative Countervailing Duty Determination, 50391-50394 [2013-20170]

Download as PDF Federal Register / Vol. 78, No. 160 / Monday, August 19, 2013 / Notices 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 (including dusted shrimp), 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; (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; (4) shrimp and prawns in prepared meals; (5) dried shrimp and prawns; (6) canned warmwater shrimp and prawns; and (7) certain ‘‘battered shrimp’’ (see below). ‘‘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 10 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 included in the scope of this investigation are currently classified under the following HTSUS subheadings: 0306.17.00.03, 0306.17.00.06, 0306.17.00.09, 0306.17.00.12, 0306.17.00.15, 0306.17.00.18, 0306.17.00.21, 0306.17.00.24, 0306.17.00.27, 0306.17.00.40, 1605.21.10.30 and 1605.29.10.10. 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. TKELLEY on DSK3SPTVN1PROD with NOTICES Appendix II—List of Comments and Issues in the Decision Memorandum A. General Issues Comment 1 The Application of Section 771B of the Act (the Agricultural Processing Provision) to Subsidies to Fresh Shrimp Farmers Comment 2 The Attribution of Fresh Shrimp Subsidies to Respondent Processors; Use of a Simple or Weighted Average Comment 3 The Deferral of New Subsidy Allegations to Administrative Reviews VerDate Mar<15>2010 17:51 Aug 16, 2013 Jkt 229001 Comment 4 The Determination Not To Investigate Value-Added Tax (VAT) Exemptions B. Company Specific Issues Comment 5 Promarisco’s Cross-Ownership, Sales Value, and Purchases of Fresh Shrimp Comment 6 Clerical Error in Calculation of Songa’s Preliminary Subsidy Rate C. Preferential, Exempted, and Forgiveness of Land-Use Fees for Shrimp Farmers Comment 7 Whether the GOE’s Inter-Tidal Land Concessions Program Is Specific Comment 8 The Appropriate Measure of Revenue Forgone Due to the GOE’s InterTidal Land Concessions Program Comment 9 Benchmark for Measuring the Benefit Conferred by the GOE Comment 10 Alleged GOE Forgiveness of Land-Use Fees Comment 11 Songa’s Minor Corrections Comment 12 Promarisco’s Unreported Land Concessions D. Preferential Loans From the National Finance Corporation (CFN) and the National Development Bank (BNF) Comment 13 Whether To Apply AFA To Loan Discovered at Verification E. Export Restraints on Raw, Unprocessed Shrimp Comment 14 Whether the GOE Imposed Export Restraints on Raw and Unprocessed Shrimp [FR Doc. 2013–20169 Filed 8–16–13; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–989] Certain Frozen Warmwater Shrimp From the People’s Republic of China: Final Affirmative Countervailing Duty Determination Import Administration, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) determines that countervailable subsidies are being provided to producers and exporters of certain frozen warmwater shrimp from the People’s Republic of China (PRC). For information on the estimated subsidy rates, see the ‘‘Suspension of Liquidation’’ section of this notice. DATES: Effective Date: August 19, 2013. FOR FURTHER INFORMATION CONTACT: John Conniff or Eric Greynolds, Office 8, Import Administration, U.S. Department of Commerce, Room CC116, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: 202– 482–1109 or 202–482–6071, respectively. SUPPLEMENTARY INFORMATION: AGENCY: PO 00000 Frm 00019 Fmt 4703 Sfmt 4703 50391 Background The petitioner in this investigation is the Coalition of Gulf Shrimp Industries (Petitioner).1 This investigation covers 29 government programs. The mandatory respondent in this investigation is Zhanjiang Guolian Aquatic Products, Co., Ltd. (Guolian), Zhanjiang Guolian Feed Co., Ltd. (Guolian Feed), Zhanjiang Guolian Aquatic Fry Technology Co., Ltd. (Guolian Fry), Zhanjiang Guotong Aquatic Co., Ltd. (Guotong) (collectively, the Guolian Companies). Period of Investigation The period of investigation for which we are measuring subsidies is January 1, 2011, through December 31, 2011. Case History The events that have occurred since the Department published the Preliminary Determination on June 4, 2013,2 are discussed in the Memorandum to Paul Piquado, Assistant Secretary for Import Administration, ‘‘Issues and Decision Memorandum for the Final Determination in the Certain Frozen Warmwater Shrimp from the People’s Republic of China’’ (Decision Memorandum), which is hereby adopted by this notice.3 Scope Comments On March 28, 2013, Petitioner asked the Department to clarify that the scope of this investigation does not include 1 The members of the Coalition of Gulf Shrimp Industries are: Bayou Shrimp Processors, Inc.; Bluewater Shrimp Company, Inc.; Carson & Co., Inc.; C.F. Gollott & Sons Seafood, Inc.; Dean Blanchard Seafood, Inc.; Dominick Seafood; Fisherman’s Reef Packing Plant; Golden Gulf Coast Pkg. Co., Inc. (and Gollott’s Oil Dock & Ice House); Graham Fisheries, Inc.; Graham Shrimp, Inc.; Gulf Crown Seafood Co., Inc.; Gulf Fish Inc.; Gulf Island Shrimp & Seafood, LLC; Gulf Pride Enterprises, Inc.; Hi-Seas of Dulac, Inc.; Indian Ridge Shrimp Co.; JBS Packing Co., Inc.; Lafitte Frozen Foods Corp.; M&M Shrimp (Biloxi Freezing and Processing); Ocean Springs Seafood Market, Inc.; Paul Piazza & Sons, Inc.; R.A. Lesso Brokerage Co., Inc.; Sea Pearl Seafood Co., Inc.; Smith and Sons Seafood; Tidelands Seafood Co., Inc.; Tommy’s Seafood; Vincent Piazza & Sons Seafood, Inc.; Wood’s Fisheries; Mariah Jade Shrimp Company, LLC; David Chauvin’s Seafood Company, LLC; and Rountree Enterprises, Inc. (dba Leonard & Sons Shrimp Co. and R&R Fisheries). 2 See Certain Frozen Warmwater Shrimp From the People’s Republic of China: Preliminary Countervailing Duty Determination, 78 FR 33346 (June 4, 2013) (Preliminary Determination). 3 Public versions of all business proprietary documents and all public documents are on file electronically via Import Administration’s Antidumping and Countervailing Duty Centralized Electronic Service System (IA ACCESS). Access to IA ACCESS is available to registered users at https://iaaccess.trade.gov and in the Central Records Unit, Room 7046 of the main Department of Commerce building. E:\FR\FM\19AUN1.SGM 19AUN1 50392 Federal Register / Vol. 78, No. 160 / Monday, August 19, 2013 / Notices brine-frozen shrimp.4 We have addressed this request and comments thereon in the Memorandum to Paul Piquado, Assistant Secretary for Import Administration, ‘‘Certain Frozen Warmwater Shrimp from Ecuador, India, Indonesia, Malaysia, People’s Republic of China, Thailand, and Socialist Republic of Vietnam—Final Scope Memorandum Regarding Onboard Brine—Frozen Shrimp’’ (Scope Memorandum), which is hereby adopted by this notice. Scope of the Investigation The products covered by this investigation are certain frozen warmwater shrimp and prawns, whether wild-caught (ocean harvested) or farm-raised (produced by aquaculture), head-on or head-off, shellon or peeled, tail-on or tail-off, deveined or not deveined, cooked or raw, or otherwise processed in frozen form, regardless of size. For a complete description of the scope of the investigation, see Appendix I to this notice. Analysis of Subsidy Programs and Comments Received The subsidy programs under investigation and the issues raised in the case and rebuttal briefs submitted by parties in this investigation are addressed in the Decision Memorandum, dated concurrently with this notice. A list of subsidy programs and the issues that parties have raised, and to which we responded in the Decision Memorandum, is attached to this notice as Appendix II. The Decision and Scope Memoranda are public documents and are on file electronically via IA ACCESS. In addition, complete versions of the Decision and Scope Memoranda can be accessed directly on the Internet at https://www.trade.gov/ia/. The signed and the electronic versions of these memoranda are identical in content. Use of Facts Otherwise Available, Including Adverse Inferences For purposes of this final determination, we have relied on facts available and have applied an adverse inference in accordance with sections 776(a) and (b) of the Tariff Act of 1930, as amended (the Act) with regard to: (1) Additional grants received by the Guolian Companies not addressed by the Department in the Preliminary Determination; (2) three grants reported at verification; (3) central government grants in connection with the Zhanjiang Guolian’s Penaeus Vannamei Boone (aka White Shrimp) Processing Project; and (4) export buyers credits from China Export-Import Bank (China ExIm) Program. A full discussion of our decision to rely on AFA is presented in the Decision Memorandum under the section ‘‘Use of Facts Otherwise Available and Adverse Inferences.’’ Suspension of Liquidation In accordance with section 705(c)(1)(B)(i) of the Act, we have calculated an individual rate for the Goulian Companies. Section 705(c)(5)(A)(i) of the Act states that for companies not individually investigated, we will determine an ‘‘allothers’’ rate equal to the weighted average countervailable subsidy rates established for exporters and producers individually investigated, excluding any zero and de minimis countervailable subsidy rates, and any rates determined entirely under section 776 of the Act. Because we have calculated a rate for only the Goulian Companies, the rate for the Goulian Companies is the all others rate. We determine the total estimated net countervailable subsidy rates to be: Net subsidy ad valorem rate (percent) Producer/exporter TKELLEY on DSK3SPTVN1PROD with NOTICES Zhanjiang Guolian Aquatic Products, Co., Ltd. (Guolian), Zhanjiang Guolian Feed Co., Ltd. (Guolian Feed), Zhanjiang Guolian Aquatic Fry Technology Co., Ltd. (Guolian Fry), Zhanjiang Guotong Aquatic Co., Ltd. (Guotong) (collectively, the Guolian Companies) ...................................................................................................................................................................................... All Others ............................................................................................................................................................................................. As a result of our Preliminary Determination, and pursuant to section 703(d) of the Act, we instructed U.S. Customs and Border Protection (CBP) to suspend liquidation of all entries of certain frozen warmwater shrimp from the PRC that were entered or withdrawn from warehouse, for consumption on or after June 4, 2013, the date of publication of the Preliminary Determination in the Federal Register. Pursuant to section 705(c)(1)(B)(ii) of the Act, we are directing CBP to continue suspending liquidation on all imports of subject merchandise from the PRC that are entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the Federal Register. CBP shall require a cash deposit equal to the subsidy rates indicated in the chart above. These suspension-of-liquidation instructions will remain in effect until further notice. If the U.S. International Trade Commission (ITC) issues a final affirmative injury determination, we will issue a countervailing duty (CVD) order under section 706(a) 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 canceled. 4 See Letter from Petitioner, ‘‘Countervailing Duty Investigation on Certain Frozen Warmwater Shrimp ITC confirms that it will not disclose such information, either publicly or under an administrative protective order (APO), without the written consent of the Assistant Secretary for Import Administration. from the People’s Republic of China (C–570–989)— Request for Scope Clarification’’ (March 28, 2013). VerDate Mar<15>2010 17:51 Aug 16, 2013 Jkt 229001 ITC Notification In accordance with section 705(d) of the Act, we will notify the ITC of our determination. In addition, we are making available to the ITC all nonprivileged 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 PO 00000 Frm 00020 Fmt 4703 Sfmt 4703 18.16 18.16 Return or Destruction of Proprietary Information In the event that the ITC issues a final negative injury determination, 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 E:\FR\FM\19AUN1.SGM 19AUN1 Federal Register / Vol. 78, No. 160 / Monday, August 19, 2013 / Notices APO is a violation that is subject to sanction. This determination is published pursuant to sections 705(d) and 777(i) of the Act. TKELLEY on DSK3SPTVN1PROD with NOTICES Dated: August 12, 2013. Paul Piquado, Assistant Secretary for Import Administration. Appendix I—Scope of the Investigation The products covered by this investigation are 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,5 deveined or not deveined, cooked or raw, or otherwise processed in frozen form, regardless of size. 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 (including dusted shrimp), 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; (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; (4) shrimp and prawns in prepared meals; (5) dried shrimp and prawns; (6) canned warmwater shrimp and prawns; and (7) certain ‘‘battered shrimp’’ (see below). ‘‘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 5 ‘‘Tails’’ in this context means the tail fan, which includes the telson and the uropods. VerDate Mar<15>2010 17:51 Aug 16, 2013 Jkt 229001 with the flour; (4) with the non-shrimp 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 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 included in the scope of this investigation are currently classified under the following HTSUS subheadings: 0306.17.00.03, 0306.17.00.06, 0306.17.00.09, 0306.17.00.12, 0306.17.00.15, 0306.17.00.18, 0306.17.00.21, 0306.17.00.24, 0306.17.00.27, 0306.17.00.40, 1605.21.10.30 and 1605.29.10.10. 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 Subsidy Programs and Issues in the Decision Memorandum A. Programs Determined To Be Countervailable 1. Preferential Lending to Shrimp Producers by the Central Government and Province of Guangdong 2. Central Government, Provincial, and Municipal Grants Under the Famous Brands Program 3. Value-Added (VAT) Exemptions on Imports of Shrimp Fry 4. VAT Refunds for Foreign Invested Enterprises (FIEs) on Purchases of Chinese-Made Equipment 5. VAT and Import Tariff Exemptions for FIEs and Certain Domestic Enterprises Using Imported Equipment in Encouraged Industries 6. Enterprise Income Tax Reduction for High and New Technology Enterprises 7. Tax Incentives for Enterprises Engaged in Aquaculture and Processing 8. Central Government Grants in Connection With the Zhanjiang Guolian’s Penaeus Vannamei Boone (aka White Shrimp) Processing Project 9. Additional Grants Received by the Guolian Companies Not Addressed by the Department in the Preliminary Determination B. Program Determined Not To Confer a Benefit During the POI 1. Grants Under the Guangdong Province Coastal Region Fishermen’s Job Transferring Bill Fishery Industry Development Project Fund C. Programs Determined To Be Not Used 1. Central Government Provision of Loan Guarantees at the Zhanjiang City Seafood Center 2. Export Sellers Credits from China ExportImport (Ex-Im) Bank 3. Guangdong Province Funds for Enterprise Outward Expansion 4. State Key Renovation Project Fund Program 5. Grants Under the Healthy Development of the Aquaculture Industry Program PO 00000 Frm 00021 Fmt 4703 Sfmt 4703 50393 6. Grants by the Central Government and the Zuzhou District Government in Connection with Construction of Fishery Industry Zones and Farms 7. Grants from the Huanhua City Government for Fry Breeding 8. Central Government Grants under the 2010 Aquatic Products Quality and Safety Supervision Program 9. Government Grants for Fishery Machinery and Equipment Purchases 10. Grants from Banfu County Government for Development of Breeding Stock 11. Two Free, Three Half Program 12. Export Oriented FIEs 13. Tax Refund for Profit Reinvestment in Export-Oriented Enterprises 14. Tax Incentives for FIEs in Special Economic Zones 15. VAT Refunds for Domestic Firms on Purchases of Chinese-Made Equipment 16. Central Government Provision of Rent for Less than Adequate Remuneration (LTAR) and Waiver of Management Fees at the Zhanjiang City Seafood Center 17. Central Government Provision of Cold Storage Services at the Zhanjiang City Seafood Center for LTAR 18. Export Credit Insurance from Sinosure Comment 1: Application of the CVD Law to the PRC Comment 2: Simultaneous Application of CVD and Non-Market Economy Measures Comment 3: Proper ‘‘Cut-Off’’ Date to Apply in the Investigation Comment 4: Whether the Department’s Application of Section 771B of the Act Improperly Attributes Subsidy Benefits to Shrimp Suppliers Comment 5: Whether the ‘‘Substantially Dependent’’ Criterion under Section 771B(1) of the Act is Satisfied Comment 6: Whether the ‘‘Limited Value’’ Criterion Under Section 771B(2) of the Act is Satisfied Comment 7: Whether the Department Applied Section 771B of the Act in a Manner that Was Flawed Comment 8: Denominator Used in Calculating the Net Subsidy Rate for Programs in Which the Department Attributed Benefits to Unaffiliated Farmers under Section 771B of the Act Comment 9: Manner in Which the Department Conducted the 0.5 Percent Test When Attributing Benefits to Unaffiliated Farmers under Section 771B of the Act Comment 10: Whether the Guolian Companies Benefited from Subsidies Received in Connection with the Zhanjiang City Seafood Center Comment 11: Whether the Department Should Initiate Investigations of Petitioner’s Second Round of New Subsidy Allegations Comment 12: Calculation of Guolian’s Tax Exemption Benefit Using Tax Payments Made During the POI Comment 13: Whether the Department Made Ministerial Errors in the Preliminary Determination That Should be Corrected for the Final Determination Comment 14: Whether the Department Should Countervail the Three Grants E:\FR\FM\19AUN1.SGM 19AUN1 50394 Federal Register / Vol. 78, No. 160 / Monday, August 19, 2013 / Notices Reported at Verification and Whether the Department’s Refusal to Collect Benefit Information Regarding the Grants is Contrary to Past Practice Comment 15: Treatment of Additional Grants Received by the Guolian Companies Not Addressed by the Department in the Preliminary Determination Comment 16: Whether to Apply AFA With Regard to the Export Buyer’s Credits from the China Ex-Im Bank Program Comment 17: Whether the Export Seller’s Credits from the China Ex-Im Bank Program is Countervailable Comment 18: Whether the GOC Provided Preferential Lending to the Aquaculture Industry Comment 19: Whether the Benchmark Used to Measure Benefits under the Preferential Lending to the Aquaculture Industry Program is Flawed Comment 20: Whether Tax Benefits under Article 28 of the Enterprise Income Tax Law for High or New Technology Enterprises is Not Countervailable Because It is Not Specific Comment 21: Whether the Grants under the GOC White Shrimp Processing Project are Specific [FR Doc. 2013–20170 Filed 8–16–13; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration Advisory Committee on Supply Chain Competitiveness: Notice of Public Meeting International Trade Administration, U.S. Department of Commerce. ACTION: Notice of open meeting. AGENCY: This notice sets forth the schedule and proposed topics of discussion for a public meeting of the Advisory Committee on Supply Chain Competitiveness (Committee). DATES: The meeting will be held on September 11, 2013, from 9:00 a.m. to 3:00 p.m., Eastern Standard Time (EST). ADDRESSES: The meeting will be held at the U.S. Department of Commerce, 1401 Constitution Avenue NW., Room 4830, Washington, DC 20230. FOR FURTHER INFORMATION CONTACT: Richard Boll, Office of Service Industries, International Trade Administration. (Phone: (202) 482–1135 or Email: richard.boll@trade.gov) SUPPLEMENTARY INFORMATION: Background: The Committee was established under the discretionary authority of the Secretary of Commerce and in accordance with the Federal Advisory Committee Act (5 U.S.C. App. 2). It provides advice to the Secretary of Commerce on the necessary elements of a comprehensive, holistic national TKELLEY on DSK3SPTVN1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 17:51 Aug 16, 2013 Jkt 229001 freight infrastructure and a national freight policy designed to support U.S. export and growth competitiveness, foster national economic competitiveness, and improve U.S. supply chain competitiveness in the domestic and global economy. For more information about the Committee visit: https://ita.doc.gov/td/sif/DSCT/ACSCC. Matters to Be Considered: Committee members are expected to continue to discuss the major competitivenessrelated topics raised at the previous Committee meetings, including trade and competitiveness; freight movement and policy; information technology and data requirements; regulatory issues; and finance and infrastructure. The Committee’s subcommittees will report on the status of their work regarding these topics. The agenda may change to accommodate Committee business. The Office of Service Industries will post the final detailed agenda on its Web site, https://ita.doc.gov/td/sif/DSCT/ACSCC, at least one week prior to the meeting. The meeting will be open to the public and press on a first-come, firstserved basis. Space is limited. The public meeting is physically accessible to people with disabilities. Individuals requiring accommodations, such as sign language interpretation or other ancillary aids, are asked to notify Mr. Richard Boll, at (202) 482–1135 or richard.boll@trade.gov five (5) business days before the meeting. Interested parties are invited to submit written comments to the Committee at any time before and after the meeting. Parties wishing to submit written comments for consideration by the Committee in advance of this meeting must send them to the Office of Service Industries (OSI), 1401 Constitution Ave NW., Room 11014, Washington, DC, 20230, or email to supplychain@trade.gov. For consideration during the meeting, and to ensure transmission to the Committee prior to the meeting, comments must be received no later than 5:00 p.m. EST on September 2, 2013. Comments received after September 2, 2013, will be distributed to the Committee, but may not be considered at the meeting. The minutes of the meeting will be posted on the Committee Web site within 60 days of the meeting. DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration RIN 0648–BA53 Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; SnapperGrouper Fishery off the South Atlantic States; Amendment 22; Correction National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Supplemental Notice of Intent (NOI); correction; extension of public comment period. AGENCY: This document contains a correction to a supplemental NOI published in the Federal Register on August 2, 2013, regarding the implementation of management measures described in Amendment 22 to the Fishery Management Plan for the Snapper-Grouper Fishery in the South Atlantic Region (Amendment 22). The document contained an incorrect docket number in the ADDRESSES section. This document corrects that mistake. NMFS is extending until October 3, 2013, the period for public comment regarding the management measures described in Amendment 22. NMFS is extending the comment period to ensure there is adequate time to submit complete responses. SUMMARY: This correction is effective August 19, 2013. Comments on the supplemental NOI to Amendment 22, published at 78 FR 46923, August 2, 2013, should be submitted on or before October 3, 2013. FOR FURTHER INFORMATION CONTACT: Anne Marie Eich, telephone: 727–209– 5968, email: AnneMarie.Eich@noaa.gov. SUPPLEMENTARY INFORMATION: In FR Doc. 2013–18676, appearing on page 46924, in the Federal Register of August 2, 2013, in the first column, correct the first bullet under ADDRESSES section to read as follows: • Electronic Submission: Submit all electronic public comments via the Federal e-Rulemaking Portal. Go to www.regulations.gov/ #!docketDetail;D=NOAA–NMFS–2010– 0264, click the ‘‘Comment Now!’’ icon, complete the required fields, and enter or attach your comments. DATES: Dated: August 13, 2013. David Long, Director, Office of Service Industries. Dated: August 14, 2013. James P. Burgess, Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service. [FR Doc. 2013–20043 Filed 8–16–13; 8:45 am] [FR Doc. 2013–20183 Filed 8–16–13; 8:45 am] BILLING CODE 3510–DR–P BILLING CODE 3510–22–P PO 00000 Frm 00022 Fmt 4703 Sfmt 9990 E:\FR\FM\19AUN1.SGM 19AUN1

Agencies

[Federal Register Volume 78, Number 160 (Monday, August 19, 2013)]
[Notices]
[Pages 50391-50394]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-20170]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-989]


Certain Frozen Warmwater Shrimp From the People's Republic of 
China: Final Affirmative Countervailing Duty Determination

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain frozen warmwater shrimp from the People's Republic of China 
(PRC). For information on the estimated subsidy rates, see the 
``Suspension of Liquidation'' section of this notice.

DATES: Effective Date: August 19, 2013.

FOR FURTHER INFORMATION CONTACT: John Conniff or Eric Greynolds, Office 
8, Import Administration, U.S. Department of Commerce, Room CC116, 14th 
Street and Constitution Avenue NW., Washington, DC 20230; telephone: 
202-482-1109 or 202-482-6071, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The petitioner in this investigation is the Coalition of Gulf 
Shrimp Industries (Petitioner).\1\ This investigation covers 29 
government programs. The mandatory respondent in this investigation is 
Zhanjiang Guolian Aquatic Products, Co., Ltd. (Guolian), Zhanjiang 
Guolian Feed Co., Ltd. (Guolian Feed), Zhanjiang Guolian Aquatic Fry 
Technology Co., Ltd. (Guolian Fry), Zhanjiang Guotong Aquatic Co., Ltd. 
(Guotong) (collectively, the Guolian Companies).
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    \1\ The members of the Coalition of Gulf Shrimp Industries are: 
Bayou Shrimp Processors, Inc.; Bluewater Shrimp Company, Inc.; 
Carson & Co., Inc.; C.F. Gollott & Sons Seafood, Inc.; Dean 
Blanchard Seafood, Inc.; Dominick Seafood; Fisherman's Reef Packing 
Plant; Golden Gulf Coast Pkg. Co., Inc. (and Gollott's Oil Dock & 
Ice House); Graham Fisheries, Inc.; Graham Shrimp, Inc.; Gulf Crown 
Seafood Co., Inc.; Gulf Fish Inc.; Gulf Island Shrimp & Seafood, 
LLC; Gulf Pride Enterprises, Inc.; Hi-Seas of Dulac, Inc.; Indian 
Ridge Shrimp Co.; JBS Packing Co., Inc.; Lafitte Frozen Foods Corp.; 
M&M Shrimp (Biloxi Freezing and Processing); Ocean Springs Seafood 
Market, Inc.; Paul Piazza & Sons, Inc.; R.A. Lesso Brokerage Co., 
Inc.; Sea Pearl Seafood Co., Inc.; Smith and Sons Seafood; Tidelands 
Seafood Co., Inc.; Tommy's Seafood; Vincent Piazza & Sons Seafood, 
Inc.; Wood's Fisheries; Mariah Jade Shrimp Company, LLC; David 
Chauvin's Seafood Company, LLC; and Rountree Enterprises, Inc. (dba 
Leonard & Sons Shrimp Co. and R&R Fisheries).
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Period of Investigation

    The period of investigation for which we are measuring subsidies is 
January 1, 2011, through December 31, 2011.

Case History

    The events that have occurred since the Department published the 
Preliminary Determination on June 4, 2013,\2\ are discussed in the 
Memorandum to Paul Piquado, Assistant Secretary for Import 
Administration, ``Issues and Decision Memorandum for the Final 
Determination in the Certain Frozen Warmwater Shrimp from the People's 
Republic of China'' (Decision Memorandum), which is hereby adopted by 
this notice.\3\
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    \2\ See Certain Frozen Warmwater Shrimp From the People's 
Republic of China: Preliminary Countervailing Duty Determination, 78 
FR 33346 (June 4, 2013) (Preliminary Determination).
    \3\ Public versions of all business proprietary documents and 
all public documents are on file electronically via Import 
Administration's Antidumping and Countervailing Duty Centralized 
Electronic Service System (IA ACCESS). Access to IA ACCESS is 
available to registered users at https://iaaccess.trade.gov and in 
the Central Records Unit, Room 7046 of the main Department of 
Commerce building.
---------------------------------------------------------------------------

Scope Comments

    On March 28, 2013, Petitioner asked the Department to clarify that 
the scope of this investigation does not include

[[Page 50392]]

brine-frozen shrimp.\4\ We have addressed this request and comments 
thereon in the Memorandum to Paul Piquado, Assistant Secretary for 
Import Administration, ``Certain Frozen Warmwater Shrimp from Ecuador, 
India, Indonesia, Malaysia, People's Republic of China, Thailand, and 
Socialist Republic of Vietnam--Final Scope Memorandum Regarding Onboard 
Brine--Frozen Shrimp'' (Scope Memorandum), which is hereby adopted by 
this notice.
---------------------------------------------------------------------------

    \4\ See Letter from Petitioner, ``Countervailing Duty 
Investigation on Certain Frozen Warmwater Shrimp from the People's 
Republic of China (C-570-989)--Request for Scope Clarification'' 
(March 28, 2013).
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are 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, regardless of size. For a 
complete description of the scope of the investigation, see Appendix I 
to this notice.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs submitted by parties in this investigation 
are addressed in the Decision Memorandum, dated concurrently with this 
notice. A list of subsidy programs and the issues that parties have 
raised, and to which we responded in the Decision Memorandum, is 
attached to this notice as Appendix II.
    The Decision and Scope Memoranda are public documents and are on 
file electronically via IA ACCESS. In addition, complete versions of 
the Decision and Scope Memoranda can be accessed directly on the 
Internet at https://www.trade.gov/ia/. The signed and the electronic 
versions of these memoranda are identical in content.

Use of Facts Otherwise Available, Including Adverse Inferences

    For purposes of this final determination, we have relied on facts 
available and have applied an adverse inference in accordance with 
sections 776(a) and (b) of the Tariff Act of 1930, as amended (the Act) 
with regard to: (1) Additional grants received by the Guolian Companies 
not addressed by the Department in the Preliminary Determination; (2) 
three grants reported at verification; (3) central government grants in 
connection with the Zhanjiang Guolian's Penaeus Vannamei Boone (aka 
White Shrimp) Processing Project; and (4) export buyers credits from 
China Export-Import Bank (China ExIm) Program. A full discussion of our 
decision to rely on AFA is presented in the Decision Memorandum under 
the section ``Use of Facts Otherwise Available and Adverse 
Inferences.''

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of the Act, we have 
calculated an individual rate for the Goulian Companies. Section 
705(c)(5)(A)(i) of the Act states that for companies not individually 
investigated, we will determine an ``all-others'' rate equal to the 
weighted average countervailable subsidy rates established for 
exporters and producers individually investigated, excluding any zero 
and de minimis countervailable subsidy rates, and any rates determined 
entirely under section 776 of the Act. Because we have calculated a 
rate for only the Goulian Companies, the rate for the Goulian Companies 
is the all others rate.
    We determine the total estimated net countervailable subsidy rates 
to be:

------------------------------------------------------------------------
                                                          Net subsidy ad
                    Producer/exporter                      valorem rate
                                                             (percent)
------------------------------------------------------------------------
Zhanjiang Guolian Aquatic Products, Co., Ltd. (Guolian),           18.16
 Zhanjiang Guolian Feed Co., Ltd. (Guolian Feed),
 Zhanjiang Guolian Aquatic Fry Technology Co., Ltd.
 (Guolian Fry), Zhanjiang Guotong Aquatic Co., Ltd.
 (Guotong) (collectively, the Guolian Companies)........
All Others..............................................           18.16
------------------------------------------------------------------------

    As a result of our Preliminary Determination, and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (CBP) to suspend liquidation of all entries of certain 
frozen warmwater shrimp from the PRC that were entered or withdrawn 
from warehouse, for consumption on or after June 4, 2013, the date of 
publication of the Preliminary Determination in the Federal Register. 
Pursuant to section 705(c)(1)(B)(ii) of the Act, we are directing CBP 
to continue suspending liquidation on all imports of subject 
merchandise from the PRC that are entered, or withdrawn from warehouse, 
for consumption on or after the date of publication of this notice in 
the Federal Register. CBP shall require a cash deposit equal to the 
subsidy rates indicated in the chart above. These suspension-of-
liquidation instructions will remain in effect until further notice.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
(CVD) order under section 706(a) 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 canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are 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 an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Import Administration.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, 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

[[Page 50393]]

APO is a violation that is subject to sanction.
    This determination is published pursuant to sections 705(d) and 
777(i) of the Act.

    Dated: August 12, 2013.
Paul Piquado,
Assistant Secretary for Import Administration.

Appendix I--Scope of the Investigation

    The products covered by this investigation are 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,\5\ deveined or not 
deveined, cooked or raw, or otherwise processed in frozen form, 
regardless of size.
---------------------------------------------------------------------------

    \5\ ``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 
(including dusted shrimp), 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; (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; 
(4) shrimp and prawns in prepared meals; (5) dried shrimp and 
prawns; (6) canned warmwater shrimp and prawns; and (7) certain 
``battered shrimp'' (see below).
    ``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 10 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 included in the scope of this investigation are 
currently classified under the following HTSUS subheadings: 
0306.17.00.03, 0306.17.00.06, 0306.17.00.09, 0306.17.00.12, 
0306.17.00.15, 0306.17.00.18, 0306.17.00.21, 0306.17.00.24, 
0306.17.00.27, 0306.17.00.40, 1605.21.10.30 and 1605.29.10.10. 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 Subsidy Programs and Issues in the Decision 
Memorandum

A. Programs Determined To Be Countervailable

1. Preferential Lending to Shrimp Producers by the Central 
Government and Province of Guangdong
2. Central Government, Provincial, and Municipal Grants Under the 
Famous Brands Program
3. Value-Added (VAT) Exemptions on Imports of Shrimp Fry
4. VAT Refunds for Foreign Invested Enterprises (FIEs) on Purchases 
of Chinese-Made Equipment
5. VAT and Import Tariff Exemptions for FIEs and Certain Domestic 
Enterprises Using Imported Equipment in Encouraged Industries
6. Enterprise Income Tax Reduction for High and New Technology 
Enterprises
7. Tax Incentives for Enterprises Engaged in Aquaculture and 
Processing
8. Central Government Grants in Connection With the Zhanjiang 
Guolian's Penaeus Vannamei Boone (aka White Shrimp) Processing 
Project
9. Additional Grants Received by the Guolian Companies Not Addressed 
by the Department in the Preliminary Determination

B. Program Determined Not To Confer a Benefit During the POI

1. Grants Under the Guangdong Province Coastal Region Fishermen's 
Job Transferring Bill Fishery Industry Development Project Fund

C. Programs Determined To Be Not Used

1. Central Government Provision of Loan Guarantees at the Zhanjiang 
City Seafood Center
2. Export Sellers Credits from China Export-Import (Ex-Im) Bank
3. Guangdong Province Funds for Enterprise Outward Expansion
4. State Key Renovation Project Fund Program
5. Grants Under the Healthy Development of the Aquaculture Industry 
Program
6. Grants by the Central Government and the Zuzhou District 
Government in Connection with Construction of Fishery Industry Zones 
and Farms
7. Grants from the Huanhua City Government for Fry Breeding
8. Central Government Grants under the 2010 Aquatic Products Quality 
and Safety Supervision Program
9. Government Grants for Fishery Machinery and Equipment Purchases
10. Grants from Banfu County Government for Development of Breeding 
Stock
11. Two Free, Three Half Program
12. Export Oriented FIEs
13. Tax Refund for Profit Reinvestment in Export-Oriented 
Enterprises
14. Tax Incentives for FIEs in Special Economic Zones
15. VAT Refunds for Domestic Firms on Purchases of Chinese-Made 
Equipment
16. Central Government Provision of Rent for Less than Adequate 
Remuneration (LTAR) and Waiver of Management Fees at the Zhanjiang 
City Seafood Center
17. Central Government Provision of Cold Storage Services at the 
Zhanjiang City Seafood Center for LTAR
18. Export Credit Insurance from Sinosure
Comment 1: Application of the CVD Law to the PRC
Comment 2: Simultaneous Application of CVD and Non-Market Economy 
Measures
Comment 3: Proper ``Cut-Off'' Date to Apply in the Investigation
Comment 4: Whether the Department's Application of Section 771B of 
the Act Improperly Attributes Subsidy Benefits to Shrimp Suppliers
Comment 5: Whether the ``Substantially Dependent'' Criterion under 
Section 771B(1) of the Act is Satisfied
Comment 6: Whether the ``Limited Value'' Criterion Under Section 
771B(2) of the Act is Satisfied
Comment 7: Whether the Department Applied Section 771B of the Act in 
a Manner that Was Flawed
Comment 8: Denominator Used in Calculating the Net Subsidy Rate for 
Programs in Which the Department Attributed Benefits to Unaffiliated 
Farmers under Section 771B of the Act
Comment 9: Manner in Which the Department Conducted the 0.5 Percent 
Test When Attributing Benefits to Unaffiliated Farmers under Section 
771B of the Act
Comment 10: Whether the Guolian Companies Benefited from Subsidies 
Received in Connection with the Zhanjiang City Seafood Center
Comment 11: Whether the Department Should Initiate Investigations of 
Petitioner's Second Round of New Subsidy Allegations
Comment 12: Calculation of Guolian's Tax Exemption Benefit Using Tax 
Payments Made During the POI
Comment 13: Whether the Department Made Ministerial Errors in the 
Preliminary Determination That Should be Corrected for the Final 
Determination
Comment 14: Whether the Department Should Countervail the Three 
Grants

[[Page 50394]]

Reported at Verification and Whether the Department's Refusal to 
Collect Benefit Information Regarding the Grants is Contrary to Past 
Practice
Comment 15: Treatment of Additional Grants Received by the Guolian 
Companies Not Addressed by the Department in the Preliminary 
Determination
Comment 16: Whether to Apply AFA With Regard to the Export Buyer's 
Credits from the China Ex-Im Bank Program
Comment 17: Whether the Export Seller's Credits from the China Ex-Im 
Bank Program is Countervailable
Comment 18: Whether the GOC Provided Preferential Lending to the 
Aquaculture Industry
Comment 19: Whether the Benchmark Used to Measure Benefits under the 
Preferential Lending to the Aquaculture Industry Program is Flawed
Comment 20: Whether Tax Benefits under Article 28 of the Enterprise 
Income Tax Law for High or New Technology Enterprises is Not 
Countervailable Because It is Not Specific
Comment 21: Whether the Grants under the GOC White Shrimp Processing 
Project are Specific

[FR Doc. 2013-20170 Filed 8-16-13; 8:45 am]
BILLING CODE 3510-DS-P
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