Phosphate Fertilizers From the Russian Federation: Final Affirmative Countervailing Duty Determination, 9479-9482 [2021-03010]

Download as PDF Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Notices February 18, 2021 at 10:00 a.m. Central Time. The purpose of the meeting is for the committee to discuss civil rights concerns in the state, and to work on logistics for their upcoming briefings. The meetings will be held on: • Thursday, February 18, 2021, at 10:00 a.m. Central Time, https:// civilrights.webex.com/civilrights/ j.php?MTID= madd740b602a57f45fe85eec1114633eb or Join by phone, 800–360–9505 USA Toll Free, Access code: 1990 598 676. Dated: February 9, 2021. David Mussatt, Supervisory Chief, Regional Programs Unit. [FR Doc. 2021–03005 Filed 2–12–21; 8:45 am] BILLING CODE P DATES: FOR FURTHER INFORMATION CONTACT: David Barreras, Designated Federal Officer, at dbarreras@usccr.gov or (202) 499–4066. Members of the public may listen to this discussion through the above call-in number. An open comment period will be provided to allow members of the public to make a statement as time allows. Callers can expect to incur regular charges for calls they initiate over wireless lines, according to their wireless plan. The Commission will not refund any incurred charges. Individuals who are deaf, deafblind and hard of hearing may also follow the proceedings by first calling the Federal Relay Service at 1–800–877–8339 and providing the Service with the conference call number and conference ID number. Members of the public are entitled to submit written comments; the comments must be received in the regional office within 30 days following the meeting. Written comments may be emailed to David Barreras at dbarreras@ usccr.gov. Records generated from this meeting may be inspected and reproduced at the Regional Programs Unit Office, as they become available, both before and after the meeting. Records of the meeting will be available via www.facadatabase.gov under the Commission on Civil Rights, Alabama Advisory Committee link. Persons interested in the work of this Committee are directed to the Commission’s website, https:// www.usccr.gov, or may contact the Regional Programs Unit at the above email or street address. SUPPLEMENTARY INFORMATION: khammond on DSKJM1Z7X2PROD with NOTICES Agenda I. Welcome & Roll Call II. Chair’s Comments III. Committee Discussion IV. Next Steps V. Public Comment VI. Adjournment VerDate Sep<11>2014 17:04 Feb 12, 2021 Jkt 253001 COMMISSION ON CIVIL RIGHTS Notice of Public Meetings of the Tennessee Advisory Committee AGENCY: U.S. Commission on Civil Rights. ACTION: Announcement of meeting. Notice is hereby given, pursuant to the provisions of the rules and regulations of the U.S. Commission on Civil Rights (Commission) and the Federal Advisory Committee Act that the Tennessee Advisory Committee (Committee) will hold a meeting via the web platform Webex on Thursday, February 18, 2021 at 12:00 p.m. Central Time. The purpose of the meeting is for the committee to discuss civil rights concerns in the state. DATES: The meetings will be held on: • Thursday, February 18, 2021, at 12:00 p.m. Central Time, https:// civilrights.webex.com/civilrights/ j.php?MTID=m992749f83df222cdaaa 858ecac88662f or Join by phone: 800– 360–9505 USA Toll Free, Access code: 1992 414 037. FOR FURTHER INFORMATION CONTACT: David Barreras, Designated Federal Officer, at dbarreras@usccr.gov or (202) 499–4066. SUPPLEMENTARY INFORMATION: Members of the public may listen to this discussion through the above call-in number. An open comment period will be provided to allow members of the public to make a statement as time allows. Callers can expect to incur regular charges for calls they initiate over wireless lines, according to their wireless plan. The Commission will not refund any incurred charges. Individuals who are deaf, deafblind and hard of hearing may also follow the proceedings by first calling the Federal Relay Service at 1–800–877–8339 and providing the Service with the conference call number and conference ID number. Members of the public are entitled to submit written comments; the comments must be received in the regional office within 30 days following the meeting. Written comments may be emailed to David Barreras at dbarreras@ usccr.gov. Records generated from this meeting may be inspected and reproduced at the Regional Programs Unit Office, as they become available, both before and after SUMMARY: PO 00000 Frm 00003 Fmt 4703 Sfmt 4703 9479 the meeting. Records of the meeting will be available via www.facadatabase.gov under the Commission on Civil Rights, Tennessee Advisory Committee link. Persons interested in the work of this Committee are directed to the Commission’s website, https:// www.usccr.gov, or may contact the Regional Programs Unit at the above email or street address. Agenda I. Welcome & Roll Call II. Chair’s Comments III. Committee Discussion IV. Next Steps V. Public Comment VI. Adjournment Dated: February 9, 2021. David Mussatt, Supervisory Chief, Regional Programs Unit. [FR Doc. 2021–03006 Filed 2–12–21; 8:45 am] BILLING CODE P DEPARTMENT OF COMMERCE International Trade Administration [C–821–825] Phosphate Fertilizers From the Russian Federation: Final Affirmative Countervailing Duty Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of phosphate fertilizers from the Russian Federation (Russia). DATES: Applicable February 16, 2021. FOR FURTHER INFORMATION CONTACT: George Ayache or William Horn, AD/ CVD Operations, Office VIII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–2623 or (202) 482–4868, respectively. SUPPLEMENTARY INFORMATION: AGENCY: Background On November 30, 2020, Commerce published its Preliminary Determination.1 On December 21, 2020, Commerce released its Post-Preliminary Analysis.2 For a complete description of 1 See Phosphate Fertilizers from the Russian Federation: Preliminary Affirmative Countervailing Duty Determination, 85 FR 76524 (November 30, 2020) (Preliminary Determination) and accompanying Preliminary Decision Memorandum. 2 See Memorandum, ‘‘Decision Memorandum for the Post-Preliminary Analysis of the Countervailing E:\FR\FM\16FEN1.SGM Continued 16FEN1 9480 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Notices the events that followed the Preliminary Determination, see the Issues and Decision Memorandum.3 The Issues and Decision Memorandum is a public document and is made available to the public via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https://access.trade.gov. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at https://enforcement.trade.gov/ frn/. The signed and electronic versions of the Issues and Decision Memorandum are identical in content. Period of Investigation The period of investigation is January 1, 2019, through December 31, 2019. Scope of the Investigation The products covered by this investigation are phosphate fertilizers from Russia. For a complete description of the scope of this investigation, see Appendix I. Scope Comments No interested party commented on the scope of the investigation as it appeared in the Preliminary Determination. Therefore, no changes were made to the scope of the investigation. Analysis of Subsidy Programs and Comments Received The subsidy programs under investigation and the issues raised in the case and rebuttal briefs that were submitted by parties in this investigation are addressed in the Issues and Decision Memorandum. For a list of the issues raised by interested parties and addressed in the Issues and Decision Memorandum, see Appendix II to this notice. khammond on DSKJM1Z7X2PROD with NOTICES Methodology Commerce conducted this investigation in accordance with section 701 of the Tariff Act of 1930, as amended (the Act). For each of the subsidy programs found countervailable, Commerce determines that there is a subsidy, i.e., a financial contribution by an ‘‘authority’’ that gives rise to a benefit to the recipient, Duty Investigation of Phosphate Fertilizers from the Russian Federation,’’ dated December 21, 2020 (Post-Preliminary Analysis). 3 See Memorandum, ‘‘Issues and Decision Memorandum for the Final Affirmative Determination of the Countervailing Duty Investigation of Phosphate Fertilizers from the Russian Federation,’’ dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum). VerDate Sep<11>2014 17:04 Feb 12, 2021 Jkt 253001 and that the subsidy is specific.4 For a full description of the methodology underlying our final determination, see the Issues and Decision Memorandum. In making this final determination, Commerce relied, in part, on facts available pursuant to section 776(a) of the Act. Additionally, as discussed in the Issues and Decision Memorandum, because one or more respondents did not act to the best of their ability in responding to our requests for information, we drew adverse inferences, where appropriate, in selecting from among the facts otherwise available, pursuant to section 776(b) of the Act. For further information, see the section ‘‘Use of Facts Otherwise Available and Adverse Inferences’’ in the accompanying Issues and Decision Memorandum. Verification Commerce was unable to conduct onsite verification of the information relied upon in making its final determination in this investigation. However, we took additional steps in lieu of an on-site verification to verify the information relied upon in making this final determination, in accordance with section 782(i) of the Act.5 Changes Since the Preliminary Determination Based on our review and analysis of the comments received from parties, we made certain changes to Industrial Group Phosphorite LLC (Phosphorite) and Joint Stock Company Apatit (JSC Apatit)’s subsidy rate calculations. For a discussion of these changes, see the Issues and Decision Memorandum. Final Determination Commerce determines that the following estimated countervailable subsidy rates exist: 4 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. 5 See Commerce’s Letters, ‘‘Countervailing Duty Investigation of Phosphate Fertilizers from the Russian Federation: Supplemental Questionnaire in Lieu of On-Site Verification,’’ dated December 18, 2020; see also EuroChem Group’s Letter, ‘‘Phosphate Fertilizers from Russia,’’ dated December 28, 2020; and PhosAgro PJSC’s Letter, ‘‘Countervailing Duty Investigation of Phosphate Fertilizers from Russia: PhosAgro PJSC In Lieu-of Verification Questionnaire Response,’’ dated December 29, 2020. 6 Commerce has found the following companies to be cross-owned with Phosphorite: Mineral and Chemical Company EuroChem, JSC; NAK Azot, JSC; EuroChem Northwest, JSC; Joint Stock Company Kovdorksy GOK; EuroChem-Energo, LLC; EuroChem-Usolsky Potash Complex, LLC; EuroChem-BMU, LLC; JSC Nevinnomyssky Azot; and EuroChem Trading Rus, LLC. 7 Commerce has found the following companies to be cross-owned with JSC Apatit: PhosAgro PJSC; PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 Company Industrial Group Phosphorite LLC 6 ................................. Joint Stock Company Apatit 7 All Others .............................. Subsidy rate ad valorem (percent) 47.05 9.19 17.20 All-Others Rate We continue to calculate the allothers rate using a weighted average of the individual estimated subsidy rates calculated for the examined respondents using each company’s publicly-ranged data for the value of their exports to the United States of subject merchandise, in accordance with section 705(c)(5)(A)(i) of the Act.8 Disclosure Commerce intends to disclose to interested parties the calculations and analysis performed in this final determination within five days of any public announcement or, if there is no public announcement, within five days of the date of the publication of this notice in the Federal Register, in accordance with 19 CFR 351.224(b). Continuation of Suspension of Liquidation As a result of our Preliminary Determination and pursuant to sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs and Border Protection to suspend liquidation of entries of subject merchandise as described in the scope of the investigation section entered, or withdrawn from warehouse, for consumption on or after November 30, 2020, the date of publication of the Preliminary Determination in the Federal Register. If the U.S. International Trade Commission (ITC) issues a final affirmative injury determination, we will issue a CVD order and require a cash deposit of estimated countervailing duties for entries of subject merchandise in the amounts indicated above, in accordance with 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 PhosAgro-Belgorod LLC; PhosAgro-Don LLC; PhosAgro-Kuban LLC; PhosAgro-Kursk LLC; PhosAgro-Lipetsk LLC; PhosAgro-Orel LLC; PhosAgro-Stavropol LLC; PhosAgro-Volga LLC; PhosAgro-SeveroZapad LLC; PhosAgro-Tambov LLC; and Martynovsk AgrokhimSnab LLC. 8 For discussion of the calculation of this rate, see Memorandum, ‘‘Countervailing Duty Investigation of Phosphate Fertilizers from the Russian Federation: Final Determination Calculation of the All-Others Rate,’’ dated February 8, 2021. E:\FR\FM\16FEN1.SGM 16FEN1 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Notices of the suspension of liquidation will be refunded or canceled. 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 phosphate fertilizers from Russia. 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. In addition, we are making available to the ITC all nonprivileged and nonproprietary 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 Enforcement and Compliance. Notification Regarding APO 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 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 8, 2021. Christian Marsh, Acting Assistant Secretary for Enforcement and Compliance. khammond on DSKJM1Z7X2PROD with NOTICES Appendix I—Scope of the Investigation The merchandise covered by this investigation is phosphate fertilizers in all physical forms (i.e., solid or liquid form), with or without coating or additives such as anti-caking agents. Phosphate fertilizers in solid form are covered whether granular, prilled (i.e., pelletized), or in other solid form (e.g., powdered). The covered merchandise includes phosphate fertilizers in the following forms: Ammonium dihydrogenorthophosphate or monoammonium phosphate (MAP), chemical VerDate Sep<11>2014 17:04 Feb 12, 2021 Jkt 253001 formula NH4H2PO4; diammonium hydrogenorthophosphate or diammonium phosphate (DAP), chemical formula (NH4)2HPO4; normal superphosphate (NSP), also known as ordinary superphosphate or single superphosphate, chemical formula Ca(H2PO4)2·CaSO4; concentrated superphosphate, also known as double, treble, or triple superphosphate (TSP), chemical formula Ca(H2PO4)2·H2O; and proprietary formulations of MAP, DAP, NSP, and TSP. The covered merchandise also includes other fertilizer formulations incorporating phosphorous and non-phosphorous plant nutrient components, whether chemicallybonded, granulated (e.g., when multiple components are incorporated into granules through, e.g., a slurry process), or compounded (e.g., when multiple components are compacted together under high pressure), including nitrogen, phosphate, sulfur (NPS) fertilizers, nitrogen, phosphorous, potassium (NPK) fertilizers, nitric phosphate (also known as nitrophosphate) fertilizers, ammoniated superphosphate fertilizers, and proprietary formulations thereof that may or may not include other nonphosphorous plant nutrient components. For phosphate fertilizers that contain non-phosphorous plant nutrient components, such as nitrogen, potassium, sulfur, zinc, or other non-phosphorous components, the entire article is covered, including the non-phosphorous content, provided that the phosphorous content (measured by available diphosphorous pentaoxide, chemical formula P2O5) is at least 5% by actual weight. Phosphate fertilizers that are otherwise subject to this investigation are included when commingled (i.e., mixed or blended) with phosphate fertilizers from sources not subject to this investigation. Phosphate fertilizers that are otherwise subject to this investigation are included when commingled with substances other than phosphate fertilizers subject to this investigation (e.g., granules containing only non-phosphate fertilizers such as potash or urea). Only the subject component of such commingled products is covered by the scope of this investigation. The following products are specifically excluded from the scope of this investigation: (1) ABC dry chemical powder preparations for fire extinguishers containing MAP or DAP in powdered form; (2) industrial or technical grade MAP in white crystalline form with available P2O5 content of at least 60% by actual weight; (3) industrial or technical grade diammonium phosphate in white crystalline form with available P2O5 content of at least 50% by actual weight; (4) liquid ammonium polyphosphate fertilizers; (5) dicalcium phosphate, chemical formula CaHPO4; (6) monocalcium phosphate, chemical formula CaH4P2O8; (7) trisodium phosphate, chemical formula Na3PO4; (8) sodium tripolyphosphate, chemical formula Na5P3O10; PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 9481 (9) prepared baking powders containing sodium bicarbonate and any form of phosphate; (10) animal or vegetable fertilizers not containing phosphate fertilizers otherwise covered by the scope of this investigation; (11) phosphoric acid, chemical formula H3PO4. The Chemical Abstracts Service (CAS) numbers for covered phosphate fertilizers include, but are not limited to: 7722–76–1 (MAP); 7783–28–0 (DAP); and 65996–95–4 (TSP). The covered products may also be identified by Nitrogen-Phosphate- Potash composition, including but not limited to: NP 11–52–0 (MAP); NP 18–46–0 (DAP); and NP 0–46–0 (TSP). The covered merchandise is currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheadings 3103.11.0000; 3103.19.0000; 3105.20.0000; 3105.30.0000; 3105.40.0010; 3105.40.0050; 3105.51.0000; and 3105.59.0000. Phosphate fertilizers subject to this investigation may also enter under subheadings 3103.90.0010, 3105.10.0000, 3105.60.0000, 3105.90.0010, and 3105.90.0050. Although the HTSUS subheadings and CAS registry numbers 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. Use of Facts Otherwise Available and Adverse Inferences IV. Subsidies Valuation V. Benchmarks and Interest Rates VI. Analysis of Programs VII. Analysis of Comments Comment 1: Whether Commerce’s Rejection of PhosAgro’s Extension Request to Submit Case and Rebuttal Briefs Was Unreasonable Comment 2: Whether the Mining Rights for Less than Adequate Remuneration (LTAR) Program Is Countervailable Comment 2a: Whether the Mining Rights for LTAR Program Constitutes a Financial Contribution Comment 2b: Whether the Mining Rights for LTAR Program Is Specific Comment 2c: Whether the Mining Rights for LTAR Program Confers a Benefit Comment 2d: Whether Mining Rights Provided Prior to the Non-Market Economy ‘‘Cut-off’’ Date Should Be Included in the Mining Rights for LTAR Calculation Comment 2e: Whether Commerce Should Include Freight, Value Added Taxes (VAT), and Import Duties in the Mining Rights Benchmark Comment 2f: Whether the Calculation Methodology of the Mining Rights for LTAR Program Was Appropriate Comment 3: Whether the Natural Gas for LTAR Program Is Countervailable Comment 3a: Whether PJSC Gazprom (Gazprom) Is a Government Authority that Provides a Financial Contribution Comment 3b: Whether Oil Company Rosneft, Public Joint Stock Company E:\FR\FM\16FEN1.SGM 16FEN1 khammond on DSKJM1Z7X2PROD with NOTICES 9482 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Notices (Rosneft) Is a Government Authority that Provides a Financial Contribution Comment 3c: Whether the Saint Petersburg International Commodity Exchange (SPIMEX) Is a Government Authority that Provides a Financial Contribution Comment 3d: Whether the Provision of Natural Gas by Gazprom Is Specific Comment 3e: Whether the Provision of Natural Gas by SPIMEX Is Specific Comment 3f: Whether the Provision of Natural Gas for LTAR Confers a Benefit Comment 3g: Whether Commerce Should Adjust the Natural Gas Benchmark to ‘‘Tier One’’ Comment 3h: Whether Commerce Should Adjust the Natural Gas Benchmark to ‘‘Tier Two’’ Comment 3i: Whether Commerce Should Change the Data Relied Upon in its Natural Gas Benchmark ‘‘Tier Three’’ Analysis Comment 3j: Whether Commerce Should Adjust the Natural Gas Benchmark Data in its ‘‘Tier Three’’ Analysis. Comment 3k: Whether Commerce Should Use a VAT Inclusive Sales Denominator Comment 3l: Whether 19 CFR 351.525(b)(6) Applies to EuroChem’s Natural Gas for LTAR Comment 3m: Whether Commerce Should Consider the Relative Consumption of Natural Gas in the Production of Subject Merchandise for Purposes of Attribution Comment 3n: Whether Commerce Should Use EuroChem’s 2019 Audited Financials for Its Sales Denominators Comment 3o: Whether the Delivery Cost of SPIMEX Natural Gas from EuroChemEnergo LLC (Energo) to JSC Nevinnomyssky Azot (Nevinka) and EuroChem Northwest JSC (EuroChem NW) Should Be Considered in Any Natural Gas Subsidy Calculation Comment 4: Whether the Tax Incentives for Mining Operations—Income Tax Deduction for Exploration Expenses Program Is Specific Comment 5: Whether the Income Tax Deduction for Research and Development (R&D) Expenses Is Specific Comment 6: Whether the Regional Support of Industrial Development Programs, the Special Investment Contract (SPIC) with Perm Krai, and the Preferential Debt Financing of Projects Aimed at Introducing the Best Available Technologies Program Are Specific Comment 7: Whether Commerce Used the Appropriate Denominator to Calculate PhosAgro’s Subsidy Rates VIII. Recommendation [FR Doc. 2021–03010 Filed 2–12–21; 8:45 am] BILLING CODE 3510–DS–P VerDate Sep<11>2014 17:04 Feb 12, 2021 Jkt 253001 DEPARTMENT OF COMMERCE International Trade Administration [C–714–001] Phosphate Fertilizers From the Kingdom of Morocco: Final Affirmative Countervailing Duty Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of phosphate fertilizers from the Kingdom of Morocco (Morocco). DATES: Applicable February 16, 2021. FOR FURTHER INFORMATION CONTACT: Robert Palmer or Janae Martin, AD/CVD Operations, Office VIII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–9068 or (202) 482–0238, respectively. AGENCY: SUPPLEMENTARY INFORMATION: Background On November 30, 2020, Commerce published its Preliminary Determination.1 On December 29, 2020, Commerce published its Amended Preliminary Determination.2 On January 6, 2021, Commerce released its PostPreliminary Determination.3 For a complete description of the events that followed the Preliminary Determination, see the Issues and Decision Memorandum.4 The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users 1 See Phosphate Fertilizers from the Kingdom of Morocco: Preliminary Affirmative Countervailing Duty Determination, 85 FR 76522 (November 30, 2020) (Preliminary Determination), and accompanying Preliminary Decision Memorandum (PDM). 2 See Phosphate Fertilizers from the Kingdom of Morocco: Amended Preliminary Determination of Countervailing Duty Investigation, 85 FR 85585 (December 29, 2020) (Amended Preliminary Determination), and accompanying PDM. 3 See Memorandum, ‘‘Post-Preliminary Determination of Countervailing Duty Investigation: Phosphate Fertilizers from the Kingdom of Morocco,’’ dated January 6, 2020 (Post-Preliminary Determination). 4 See Memorandum, ‘‘Issues and Decision Memorandum for the Final Affirmative Determination of the Countervailing Duty Investigation of Phosphate Fertilizers from the Kingdom of Morocco,’’ dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum). PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 at https://access.trade.gov. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at https://enforcement.trade.gov/ frn/. The signed and electronic versions of the Issues and Decision Memorandum are identical in content. Period of Investigation The period of investigation is January 1, 2019, through December 31, 2019. Scope of the Investigation The products covered by this investigation are phosphate fertilizers from Morocco. For a complete description of the scope of this investigation, see Appendix I. Scope Comments No interested party commented on the scope of the investigation as it appeared in the Preliminary Determination. Therefore, no changes were made to the scope of the investigation. Analysis of Subsidy Programs and Comments Received The subsidy programs under investigation and the issues raised in the case and rebuttal briefs that were submitted by parties in this investigation are addressed in the Issues and Decision Memorandum. For a list of the issues raised by interested parties and addressed in the Issues and Decision Memorandum, see Appendix II to this notice. Methodology Commerce conducted this investigation in accordance with section 701 of the Tariff Act of 1930, as amended (the Act). For each of the subsidy programs found countervailable, Commerce determines that there is a subsidy, i.e., a financial contribution by an ‘‘authority’’ that gives rise to a benefit to the recipient, and that the subsidy is specific.5 For a full description of the methodology underlying our final determination, see the Issues and Decision Memorandum. Verification Commerce was unable to conduct onsite verification of the information relied upon in making its final determination in this investigation. However, we took additional steps in lieu of an on-site verification to verify 5 See Commerce’s Letters, ‘‘Supplemental Questionnaire in Lieu of On-Site Verification,’’ dated December 17, 2020; see also OCP’s Letter, ‘‘Response to Questionnaire in Lieu of On-Site Verification,’’ dated December 30, 2020; and the GOM’s Letter, ‘‘In Lieu of On-Site Verification Questionnaire Response of the Government of the Kingdom of Morocco,’’ dated December 29, 2020. E:\FR\FM\16FEN1.SGM 16FEN1

Agencies

[Federal Register Volume 86, Number 29 (Tuesday, February 16, 2021)]
[Notices]
[Pages 9479-9482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-03010]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-821-825]


Phosphate Fertilizers From the Russian Federation: Final 
Affirmative Countervailing Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of phosphate fertilizers from the Russian Federation (Russia).

DATES: Applicable February 16, 2021.

FOR FURTHER INFORMATION CONTACT: George Ayache or William Horn, AD/CVD 
Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-2623 or (202) 
482-4868, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On November 30, 2020, Commerce published its Preliminary 
Determination.\1\ On December 21, 2020, Commerce released its Post-
Preliminary Analysis.\2\ For a complete description of

[[Page 9480]]

the events that followed the Preliminary Determination, see the Issues 
and Decision Memorandum.\3\ The Issues and Decision Memorandum is a 
public document and is made available to the public via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized Electronic 
Service System (ACCESS). ACCESS is available to registered users at 
https://access.trade.gov. In addition, a complete version of the Issues 
and Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.
---------------------------------------------------------------------------

    \1\ See Phosphate Fertilizers from the Russian Federation: 
Preliminary Affirmative Countervailing Duty Determination, 85 FR 
76524 (November 30, 2020) (Preliminary Determination) and 
accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Decision Memorandum for the Post-
Preliminary Analysis of the Countervailing Duty Investigation of 
Phosphate Fertilizers from the Russian Federation,'' dated December 
21, 2020 (Post-Preliminary Analysis).
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination of the Countervailing Duty 
Investigation of Phosphate Fertilizers from the Russian 
Federation,'' dated concurrently with, and hereby adopted by, this 
notice (Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation is January 1, 2019, through December 
31, 2019.

Scope of the Investigation

    The products covered by this investigation are phosphate 
fertilizers from Russia. For a complete description of the scope of 
this investigation, see Appendix I.

Scope Comments

    No interested party commented on the scope of the investigation as 
it appeared in the Preliminary Determination. Therefore, no changes 
were made to the scope of the investigation.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs that were submitted by parties in this 
investigation are addressed in the Issues and Decision Memorandum. For 
a list of the issues raised by interested parties and addressed in the 
Issues and Decision Memorandum, see Appendix II to this notice.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Tariff Act of 1930, as amended (the Act). For each of the 
subsidy programs found countervailable, Commerce determines that there 
is a subsidy, i.e., a financial contribution by an ``authority'' that 
gives rise to a benefit to the recipient, and that the subsidy is 
specific.\4\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \4\ 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.
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    In making this final determination, Commerce relied, in part, on 
facts available pursuant to section 776(a) of the Act. Additionally, as 
discussed in the Issues and Decision Memorandum, because one or more 
respondents did not act to the best of their ability in responding to 
our requests for information, we drew adverse inferences, where 
appropriate, in selecting from among the facts otherwise available, 
pursuant to section 776(b) of the Act. For further information, see the 
section ``Use of Facts Otherwise Available and Adverse Inferences'' in 
the accompanying Issues and Decision Memorandum.

Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of an on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Act.\5\
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    \5\ See Commerce's Letters, ``Countervailing Duty Investigation 
of Phosphate Fertilizers from the Russian Federation: Supplemental 
Questionnaire in Lieu of On-Site Verification,'' dated December 18, 
2020; see also EuroChem Group's Letter, ``Phosphate Fertilizers from 
Russia,'' dated December 28, 2020; and PhosAgro PJSC's Letter, 
``Countervailing Duty Investigation of Phosphate Fertilizers from 
Russia: PhosAgro PJSC In Lieu-of Verification Questionnaire 
Response,'' dated December 29, 2020.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, we made certain changes to Industrial Group Phosphorite LLC 
(Phosphorite) and Joint Stock Company Apatit (JSC Apatit)'s subsidy 
rate calculations. For a discussion of these changes, see the Issues 
and Decision Memorandum.

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:
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    \6\ Commerce has found the following companies to be cross-owned 
with Phosphorite: Mineral and Chemical Company EuroChem, JSC; NAK 
Azot, JSC; EuroChem Northwest, JSC; Joint Stock Company Kovdorksy 
GOK; EuroChem-Energo, LLC; EuroChem-Usolsky Potash Complex, LLC; 
EuroChem-BMU, LLC; JSC Nevinnomyssky Azot; and EuroChem Trading Rus, 
LLC.
    \7\ Commerce has found the following companies to be cross-owned 
with JSC Apatit: PhosAgro PJSC; PhosAgro[hyphen]Belgorod LLC; 
PhosAgro[hyphen]Don LLC; PhosAgro[hyphen]Kuban LLC; 
PhosAgro[hyphen]Kursk LLC; PhosAgro[hyphen]Lipetsk LLC; 
PhosAgro[hyphen]Orel LLC; PhosAgro[hyphen]Stavropol LLC; 
PhosAgro[hyphen]Volga LLC; PhosAgro[hyphen]SeveroZapad LLC; 
PhosAgro[hyphen]Tambov LLC; and Martynovsk AgrokhimSnab LLC.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            ad valorem
                                                             (percent)
------------------------------------------------------------------------
Industrial Group Phosphorite LLC \6\....................           47.05
Joint Stock Company Apatit \7\..........................            9.19
All Others..............................................           17.20
------------------------------------------------------------------------

All-Others Rate

    We continue to calculate 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 data for the 
value of their exports to the United States of subject merchandise, in 
accordance with section 705(c)(5)(A)(i) of the Act.\8\
---------------------------------------------------------------------------

    \8\ For discussion of the calculation of this rate, see 
Memorandum, ``Countervailing Duty Investigation of Phosphate 
Fertilizers from the Russian Federation: Final Determination 
Calculation of the All-Others Rate,'' dated February 8, 2021.
---------------------------------------------------------------------------

Disclosure

    Commerce intends to disclose to interested parties the calculations 
and analysis performed in this final determination within five days of 
any public announcement or, if there is no public announcement, within 
five days of the date of the publication of this notice in the Federal 
Register, in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs 
and Border Protection to suspend liquidation of entries of subject 
merchandise as described in the scope of the investigation section 
entered, or withdrawn from warehouse, for consumption on or after 
November 30, 2020, the date of publication of the Preliminary 
Determination in the Federal Register.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order and require 
a cash deposit of estimated countervailing duties for entries of 
subject merchandise in the amounts indicated above, in accordance with 
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

[[Page 9481]]

of the suspension of liquidation will be refunded or canceled.

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 phosphate 
fertilizers from Russia. 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. In 
addition, we are making available to the ITC all non-privileged and 
nonproprietary 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 
Enforcement and Compliance.

Notification Regarding APO

    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 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 8, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise covered by this investigation is phosphate 
fertilizers in all physical forms (i.e., solid or liquid form), with 
or without coating or additives such as anti-caking agents. 
Phosphate fertilizers in solid form are covered whether granular, 
prilled (i.e., pelletized), or in other solid form (e.g., powdered).
    The covered merchandise includes phosphate fertilizers in the 
following forms: Ammonium dihydrogenorthophosphate or monoammonium 
phosphate (MAP), chemical formula NH4H2PO4; diammonium 
hydrogenorthophosphate or diammonium phosphate (DAP), chemical 
formula (NH4)2HPO4; normal superphosphate (NSP), also known as 
ordinary superphosphate or single superphosphate, chemical formula 
Ca(H2PO4)2[middot]CaSO4; concentrated superphosphate, also known as 
double, treble, or triple superphosphate (TSP), chemical formula 
Ca(H2PO4)2[middot]H2O; and proprietary formulations of MAP, DAP, 
NSP, and TSP.
    The covered merchandise also includes other fertilizer 
formulations incorporating phosphorous and non-phosphorous plant 
nutrient components, whether chemically-bonded, granulated (e.g., 
when multiple components are incorporated into granules through, 
e.g., a slurry process), or compounded (e.g., when multiple 
components are compacted together under high pressure), including 
nitrogen, phosphate, sulfur (NPS) fertilizers, nitrogen, 
phosphorous, potassium (NPK) fertilizers, nitric phosphate (also 
known as nitrophosphate) fertilizers, ammoniated superphosphate 
fertilizers, and proprietary formulations thereof that may or may 
not include other nonphosphorous plant nutrient components. For 
phosphate fertilizers that contain non-phosphorous plant nutrient 
components, such as nitrogen, potassium, sulfur, zinc, or other non-
phosphorous components, the entire article is covered, including the 
non-phosphorous content, provided that the phosphorous content 
(measured by available diphosphorous pentaoxide, chemical formula 
P2O5) is at least 5% by actual weight.
    Phosphate fertilizers that are otherwise subject to this 
investigation are included when commingled (i.e., mixed or blended) 
with phosphate fertilizers from sources not subject to this 
investigation. Phosphate fertilizers that are otherwise subject to 
this investigation are included when commingled with substances 
other than phosphate fertilizers subject to this investigation 
(e.g., granules containing only non-phosphate fertilizers such as 
potash or urea). Only the subject component of such commingled 
products is covered by the scope of this investigation. The 
following products are specifically excluded from the scope of this 
investigation:
    (1) ABC dry chemical powder preparations for fire extinguishers 
containing MAP or DAP in powdered form;
    (2) industrial or technical grade MAP in white crystalline form 
with available P2O5 content of at least 60% by actual weight;
    (3) industrial or technical grade diammonium phosphate in white 
crystalline form with available P2O5 content of at least 50% by 
actual weight;
    (4) liquid ammonium polyphosphate fertilizers;
    (5) dicalcium phosphate, chemical formula CaHPO4;
    (6) monocalcium phosphate, chemical formula CaH4P2O8;
    (7) trisodium phosphate, chemical formula Na3PO4;
    (8) sodium tripolyphosphate, chemical formula Na5P3O10;
    (9) prepared baking powders containing sodium bicarbonate and 
any form of phosphate;
    (10) animal or vegetable fertilizers not containing phosphate 
fertilizers otherwise covered by the scope of this investigation;
    (11) phosphoric acid, chemical formula H3PO4.
    The Chemical Abstracts Service (CAS) numbers for covered 
phosphate fertilizers include, but are not limited to: 7722-76-1 
(MAP); 7783-28-0 (DAP); and 65996-95-4 (TSP). The covered products 
may also be identified by Nitrogen-Phosphate- Potash composition, 
including but not limited to: NP 11-52-0 (MAP); NP 18-46-0 (DAP); 
and NP 0-46-0 (TSP).
    The covered merchandise is currently classified in the 
Harmonized Tariff Schedule of the United States (HTSUS) at 
subheadings 3103.11.0000; 3103.19.0000; 3105.20.0000; 3105.30.0000; 
3105.40.0010; 3105.40.0050; 3105.51.0000; and 3105.59.0000. 
Phosphate fertilizers subject to this investigation may also enter 
under subheadings 3103.90.0010, 3105.10.0000, 3105.60.0000, 
3105.90.0010, and 3105.90.0050. Although the HTSUS subheadings and 
CAS registry numbers 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. Use of Facts Otherwise Available and Adverse Inferences
IV. Subsidies Valuation
V. Benchmarks and Interest Rates
VI. Analysis of Programs
VII. Analysis of Comments
    Comment 1: Whether Commerce's Rejection of PhosAgro's Extension 
Request to Submit Case and Rebuttal Briefs Was Unreasonable
    Comment 2: Whether the Mining Rights for Less than Adequate 
Remuneration (LTAR) Program Is Countervailable
    Comment 2a: Whether the Mining Rights for LTAR Program 
Constitutes a Financial Contribution
    Comment 2b: Whether the Mining Rights for LTAR Program Is 
Specific
    Comment 2c: Whether the Mining Rights for LTAR Program Confers a 
Benefit
    Comment 2d: Whether Mining Rights Provided Prior to the Non-
Market Economy ``Cut-off'' Date Should Be Included in the Mining 
Rights for LTAR Calculation
    Comment 2e: Whether Commerce Should Include Freight, Value Added 
Taxes (VAT), and Import Duties in the Mining Rights Benchmark
    Comment 2f: Whether the Calculation Methodology of the Mining 
Rights for LTAR Program Was Appropriate
    Comment 3: Whether the Natural Gas for LTAR Program Is 
Countervailable
    Comment 3a: Whether PJSC Gazprom (Gazprom) Is a Government 
Authority that Provides a Financial Contribution
    Comment 3b: Whether Oil Company Rosneft, Public Joint Stock 
Company

[[Page 9482]]

(Rosneft) Is a Government Authority that Provides a Financial 
Contribution
    Comment 3c: Whether the Saint Petersburg International Commodity 
Exchange (SPIMEX) Is a Government Authority that Provides a 
Financial Contribution
    Comment 3d: Whether the Provision of Natural Gas by Gazprom Is 
Specific
    Comment 3e: Whether the Provision of Natural Gas by SPIMEX Is 
Specific
    Comment 3f: Whether the Provision of Natural Gas for LTAR 
Confers a Benefit
    Comment 3g: Whether Commerce Should Adjust the Natural Gas 
Benchmark to ``Tier One''
    Comment 3h: Whether Commerce Should Adjust the Natural Gas 
Benchmark to ``Tier Two''
    Comment 3i: Whether Commerce Should Change the Data Relied Upon 
in its Natural Gas Benchmark ``Tier Three'' Analysis
    Comment 3j: Whether Commerce Should Adjust the Natural Gas 
Benchmark Data in its ``Tier Three'' Analysis.
    Comment 3k: Whether Commerce Should Use a VAT Inclusive Sales 
Denominator
    Comment 3l: Whether 19 CFR 351.525(b)(6) Applies to EuroChem's 
Natural Gas for LTAR
    Comment 3m: Whether Commerce Should Consider the Relative 
Consumption of Natural Gas in the Production of Subject Merchandise 
for Purposes of Attribution
    Comment 3n: Whether Commerce Should Use EuroChem's 2019 Audited 
Financials for Its Sales Denominators
    Comment 3o: Whether the Delivery Cost of SPIMEX Natural Gas from 
EuroChem-Energo LLC (Energo) to JSC Nevinnomyssky Azot (Nevinka) and 
EuroChem Northwest JSC (EuroChem NW) Should Be Considered in Any 
Natural Gas Subsidy Calculation
    Comment 4: Whether the Tax Incentives for Mining Operations--
Income Tax Deduction for Exploration Expenses Program Is Specific
    Comment 5: Whether the Income Tax Deduction for Research and 
Development (R&D) Expenses Is Specific
    Comment 6: Whether the Regional Support of Industrial 
Development Programs, the Special Investment Contract (SPIC) with 
Perm Krai, and the Preferential Debt Financing of Projects Aimed at 
Introducing the Best Available Technologies Program Are Specific
    Comment 7: Whether Commerce Used the Appropriate Denominator to 
Calculate PhosAgro's Subsidy Rates
VIII. Recommendation

[FR Doc. 2021-03010 Filed 2-12-21; 8:45 am]
BILLING CODE 3510-DS-P
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