Certain Frozen Warmwater Shrimp From the Socialist Republic of Vietnam: Final Affirmative Countervailing Duty Determination, 50387-50389 [2013-20172]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 78, Number 160 (Monday, August 19, 2013)]
[Notices]
[Pages 50387-50389]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-20172]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-552-815]


Certain Frozen Warmwater Shrimp From the Socialist Republic of 
Vietnam: 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/or 
exporters of certain frozen warmwater shrimp (frozen shrimp) from the 
Socialist Republic of Vietnam (Vietnam). 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: Michael Romani or Dustin Ross, AD/CVD 
Operations, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230; telephone: (202) 482-0198 and (202) 482-0747, 
respectively.

Background

    The petitioner in this investigation is the Coalition of Gulf 
Shrimp Industries (Petitioner).\1\ In addition to the Government of 
Vietnam, the respondents in this investigation are Minh Qui Seafood 
Co., Ltd. (Minh Qui) \2\ and Nha Trang Seaproduct Company (Nha Trang).
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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).
    \2\ In the Preliminary Determination, we inadvertently referred 
to Minh Qui as ``Minh Qui Seafoods Co. Ltd.'' rather than its proper 
name, ``Minh Qui Seafood Co., Ltd.'' See Certain Frozen Warmwater 
Shrimp From the Socialist Republic of Vietnam: Preliminary 
Countervailing Duty Determination, 78 FR 33342 (June 4, 2013) 
(Preliminary Determination). This notice corrects that incorrect 
reference.
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Period of Investigation

    The period for which we are measuring subsidies, or period of 
investigation, 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, are discussed in the 
Memorandum to Paul Piquado, Assistant Secretary for Import 
Administration, ``Issues and Decision Memorandum for the Final 
Determination in the Countervailing Duty Investigation of Certain 
Frozen Warmwater Shrimp from the Socialist Republic of Vietnam'' 
(Decision Memorandum).\3\
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    \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 Department's Central Records Unit (CRU), room 7046 of the main 
Department of Commerce building.

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[[Page 50388]]

Scope Comments

    On March 28, 2013, Petitioner asked the Department to clarify that 
the scope of this investigation does not include 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,'' which is hereby adopted by this notice.
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    \4\ See Letter from Petitioner, ``Countervailing Duty 
Investigation on Certain Frozen Warmwater Shrimp from the Socialist 
Republic of Vietnam (C-552-815)--Request for Scope Clarification,'' 
(March 28, 2013).
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Scope of the Investigation

    This investigation covers 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. See Appendix I for a 
complete description of the scope of this investigation.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Decision Memorandum, which is hereby adopted by 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 Memorandum is a 
public document and is on file electronically via IA ACCESS. IA ACCESS 
is available to registered users at https://iaaccess.trade.gov and in 
the CRU, room 7046 of the main Department of Commerce building. In 
addition, a complete version of the Decision Memorandum can be accessed 
directly on the Internet at https://www.trade.gov/ia/. The signed 
Decision Memorandum and the electronic version of the Decision 
Memorandum are identical in content.

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of the Tariff Act of 
1930, as amended (the Act), we have calculated a rate for each company 
respondent. 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.
    Notwithstanding the language of section 705(c)(5)(A)(i) of the Act, 
we have not calculated the ``all others'' rate by weight averaging the 
rates of Minh Qui and Nha Trang, because doing so risks disclosure of 
proprietary information. Therefore, we have calculated a simple average 
of the rates calculated for Minh Qui and Nha Trang. Since both Minh Qui 
and Nha Trang received countervailable export subsidies and the ``all 
others'' rate is an average based on the individually investigated 
respondents, the ``all others'' rate includes export subsidies.
    We determine the total estimated net countervailable subsidy rates 
to be:

------------------------------------------------------------------------
                  Company                      Subsidy rate  (percent)
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Minh Qui Seafood Co., Ltd.................  7.88 (ad valorem)
Nha Trang Seaproduct Company..............  1.15 (ad valorem)
All Others................................  4.52 (ad valorem)
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    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 subject 
merchandise from Vietnam 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.
    In accordance with section 705(c)(1)(B)(ii) of the Act, we are 
directing CBP to continue to suspend liquidation of all imports of 
subject merchandise from Vietnam that are entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register, and to collect estimated duties in the 
amounts shown above. The suspension of liquidation 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 
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. Moreover, in 
accordance with section 705(c)(2) of the Act, we will instruct CBP to 
release any bond or other security and refund any cash deposits that 
were collected for shipments of subject merchandise entered, or 
withdrawn from warehouse, on or after June 4, 2013, the date that we 
instructed CBP to suspend liquidation following the Preliminary 
Determination. The interest provisions of section 778 of the Act do not 
apply.

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 APO 
is a violation that is subject to sanction.
    This determination is issued and 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

[[Page 50389]]

peeled, tail-on or tail-off,\5\ deveined or not deveined, cooked or 
raw, or otherwise processed in frozen form, regardless of size.
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    \5\ ``Tails'' in this context means the tail fan, which includes 
the telson and the uropods.
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    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 Comments and Issues in the Decision Memorandum

Comment 1: Aquaculture and Seafood Processing Plans Serving as Basis 
for Providing Countervailable Subsidies
Comment 2: Specificity of Sectoral Plans with Respect to Policy 
Lending and the Provision of Land
Comment 3: Interest Rate Support Program under the State Bank of 
Vietnam (SBV)
Comment 4: Vietinbank Export Lending Program
Comment 5: Loan Benchmarks
Comment 6: Land Benchmarks
Comment 7: Whether Minh Phu Group Benefitted from Import Duty 
Exemptions for Raw Materials
Comment 8: The Application of Section 771B of the Act (the 
Agricultural Processing Provision) to Subsidies to Fresh Shrimp 
Farmers
Comment 9: The Attribution of Fresh Shrimp Subsidies to the 
Respondent Processors: Use of a Simple or Weighted Average
Comment 10: The Attribution of Fresh Shrimp Subsidies to Respondent 
Processors: Proper Sales Denominator
Comment 11: Two Percent de minimis Standard
Comment 12: Income Tax Preference Under Chapter V of Decree 24

[FR Doc. 2013-20172 Filed 8-16-13; 8:45 am]
BILLING CODE 3510-DS-P