Phosphate Fertilizers From the Kingdom of Morocco: Final Affirmative Countervailing Duty Determination, 9482-9484 [2021-03011]
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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
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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).
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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.
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the information relied upon in making
this final determination, in accordance
with section 782(i) of the Act.6
Changes Since the Preliminary
Determination
Based on our review and analysis of
the comments received from parties, we
made certain changes to OCP S.A.’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:
Company
Subsidy rate
ad valorem
(percent)
which were applied retroactively to
November 30, 2020, the date of
publication of the Preliminary
Determination.
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
of the suspension of liquidation will be
refunded or canceled.
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ITC Notification
In accordance with section 705(d) of
OCP S.A.6 ............................
19.97
All Others ..............................
19.97 the Act, Commerce will notify the ITC
of its final affirmative determination
that countervailable subsidies are being
All-Others Rate
provided to producers and exporters of
We continue to calculate the allphosphate fertilizers from Morocco. As
others rate using the estimated
Commerce’s final determination is
weighted-average subsidy rate
affirmative, in accordance with section
calculated for OCP S.A., the only
705(b) of the Act, the ITC will
individually examined exporter/
determine, within 45 days, whether the
producer in this investigation, pursuant domestic industry in the United States
to section 705(c)(5)(A)(i) of the Act.
is materially injured or threatened with
material injury. In addition, we are
Disclosure
making available to the ITC all nonCommerce intends to disclose to
privileged and nonproprietary
interested parties the calculations and
information related to this investigation.
analysis performed in this final
We will allow the ITC access to all
determination within five days of any
privileged and business proprietary
public announcement or, if there is no
information in our files, provided the
public announcement, within five days
ITC confirms that it will not disclose
of the date of the publication of this
such information, either publicly or
notice in the Federal Register, in
under an administrative protective order
accordance with 19 CFR 351.224(b).
(APO), without the written consent of
the Assistant Secretary for Enforcement
Continuation of Suspension of
and Compliance.
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 (CBP) 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.
As a result of the Amended
Preliminary Determination, the
amended rates for OCP and all others
resulted in decreased cash deposits,
6 Commerce
has found the following companies
to be cross-owned with OCP S.A.: Jorf Fertilizers
Company I, Jorf Fertilizers Company II, Jorf
Fertilizers Company III, Jorf Fertilizers Company IV,
Jorf Fertilizers Company V, and Maroc Phosphore.
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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).
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9483
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)2CaSO4; concentrated
superphosphate, also known as double,
treble, or triple superphosphate (TSP),
chemical formula Ca(H2PO4)2H2O; 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:
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(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.
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Appendix II
List of Topics Discussed in the Issues and
Decision Memorandum
I. Summary
II. Background
III. Subsidies Valuation
IV. Benchmarks and Interest Rates
V. Analysis of Programs
VI. Analysis of Comments
General Issues
Comment 1: Whether the Petition
Demonstrated Sufficient Industry
Support
Comment 2: Whether Commerce’s ‘‘Other
Assistance’’ Question Is Contrary to Law
Mining Rights for Less Than Adequate
Remuneration (LTAR)
Comment 3: Whether Commerce Should
Revise the Phosphate Rock Benchmark
Comment 4: Whether to Include or Exclude
HQ, Support, Debt, and Other Costs as
Costs of Producing Phosphate Rock
Comment 5: Whether to Include a Profit
Component
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Comment 6: Whether Freight Costs Are
Double Counted in the Mining Costs
Comment 7: The Appropriate Quantity for
the Mining Rights for LTAR Benefit
Calculation
Comment 8: The Appropriate Analysis for
the Provision of Mining Rights for LTAR
Creditworthiness
Comment 9: Whether Commerce Correctly
Analyzed OCP S.A. (OCP)’s Financial
Ratios
Comment 10: Whether OCP Is
Uncreditworthy in 2018
Comment 11: Whether Commerce Should
Consider OCP’s Long-Term Loans in the
Creditworthiness Analysis
Comment 12: Whether Commerce
Misinterpreted OCP’s Credit Ratings
Authority Determinations
Comment 13: Whether BCP 7 Is an
Authority and Provides a Financial
Contribution
Comment 14: Whether Al Mada and AWB 8
Are Authorities and Provide a Financial
Contribution
OCP 2016 and 2018 Bond Issuance
Comment 15: Whether OCP’s 2016 Bond
Issue Conferred a Benefit
Comment 16: Whether OCP’s Bond
Issuance Is Specific
Comment 17: Whether Commerce Should
Revise the Uncreditworthy Benchmark
Interest Rate
Loans
Comment 18: Whether Direct Loans From
AWB, BCP, and CAM 9 Are
Countervailable
Comment 19: Whether the Provision of
Loan Guarantees Is Countervailable
Tax Programs
Comment 20: Whether Commerce
Overstated Taxable Income for the Tax
Incentives for Export Operations
Program
Comment 21: Whether Commerce Should
Adjust OCP’s Cash Deposit Rate
Comment 22: Whether the Reductions in
Tax Fines and Penalties Is Specific
Value-Added Tax (VAT)
Comment 23: Whether the MAD 10 20.5
Billion VAT Refund Is Countervailable
Comment 24: Whether VAT Exemptions
for Capital Goods, Machinery and
Equipment Are Countervailable
Other Subsidies
Comment 25: Whether the Provision of
Phosphogypsum Waste Disposal Is
Countervailable
Comment 26: Whether the Provision of
Phosphogypsum Waste Disposal Was
Properly Initiated
Comment 27: Whether the Provision of Rail
Service for LTAR Is Specific
VII. Recommendation
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–118]
Wood Mouldings and Millwork
Products From the People’s Republic
of China: Countervailing Duty Order
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: Based on the affirmative final
determinations by the Department of
Commerce (Commerce) and the
International Trade Commission (ITC),
Commerce is issuing its countervailing
duty order on wood mouldings and
millwork products (millwork products)
from the People’s Republic of China
(China).
AGENCY:
DATES:
Applicable February 16, 2021.
FOR FURTHER INFORMATION CONTACT:
Irene Gorelik or Faris Montgomery, 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) 482–6905 or
(202) 482–1537, respectively.
SUPPLEMENTARY INFORMATION:
Background
On January 4, 2021, Commerce
published its Final Determination in the
countervailing duty investigation of
millwork products from China.1 On
February 10, 2021, the ITC notified
Commerce of its final determination,
pursuant to sections 705(b)(1)(A)(i) and
705(d) of the Tariff Act of 1930, as
amended (the Act), that an industry in
the United States is materially injured
by reason of subsidized imports of
millwork products from China.2
Scope of the Order
The products covered by this order
are millwork products from China. For
a full description of the scope of this
order, see the appendix to this notice.
Countervailing Duty Order
On February 10, 2021, in accordance
with sections 705(b)(1)(A)(i) and 705(d)
of the Act, the ITC notified Commerce
of its final determination in this
investigation, in which it found that an
industry in the United States is
materially injured by reason of
[FR Doc. 2021–03011 Filed 2–12–21; 8:45 am]
BILLING CODE 3510–DS–P
7 Banque
Centrale Populaire (BCP).
Bank Group (AWB).
9 Credit Agricole du Maroc (CAM).
10 Morocco dirhams (MAD).
8 Attijariwafa
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1 See Wood Mouldings and Millwork Products
from the People’s Republic of China: Final
Affirmative Countervailing Duty Determination, 86
FR 67 (January 4, 2021) (Final Determination).
2 See ITC Notification Letter, Investigations, Inv.
Nos. 701–TA–636 and 731–TA–1470 (Final)
(February 10, 2021).
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Agencies
[Federal Register Volume 86, Number 29 (Tuesday, February 16, 2021)]
[Notices]
[Pages 9482-9484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-03011]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-714-001]
Phosphate Fertilizers From the Kingdom of Morocco: 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 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.
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
Post-Preliminary 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 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 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).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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
[[Page 9483]]
the information relied upon in making this final determination, in
accordance with section 782(i) of the Act.\6\
---------------------------------------------------------------------------
\6\ Commerce has found the following companies to be cross-owned
with OCP S.A.: Jorf Fertilizers Company I, Jorf Fertilizers Company
II, Jorf Fertilizers Company III, Jorf Fertilizers Company IV, Jorf
Fertilizers Company V, and Maroc Phosphore.
---------------------------------------------------------------------------
Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, we made certain changes to OCP S.A.'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:
------------------------------------------------------------------------
Subsidy rate
Company ad valorem
(percent)
------------------------------------------------------------------------
OCP S.A.\6\............................................. 19.97
All Others.............................................. 19.97
------------------------------------------------------------------------
All-Others Rate
We continue to calculate the all-others rate using the estimated
weighted-average subsidy rate calculated for OCP S.A., the only
individually examined exporter/producer in this investigation, pursuant
to section 705(c)(5)(A)(i) of the Act.
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 (CBP) 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.
As a result of the Amended Preliminary Determination, the amended
rates for OCP and all others resulted in decreased cash deposits, which
were applied retroactively to November 30, 2020, the date of
publication of the Preliminary Determination.
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 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 Morocco. 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)2CaSO4; concentrated superphosphate, also known as double,
treble, or triple superphosphate (TSP), chemical formula
Ca(H2PO4)2H2O; 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:
[[Page 9484]]
(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. Subsidies Valuation
IV. Benchmarks and Interest Rates
V. Analysis of Programs
VI. Analysis of Comments
General Issues
Comment 1: Whether the Petition Demonstrated Sufficient Industry
Support
Comment 2: Whether Commerce's ``Other Assistance'' Question Is
Contrary to Law
Mining Rights for Less Than Adequate Remuneration (LTAR)
Comment 3: Whether Commerce Should Revise the Phosphate Rock
Benchmark
Comment 4: Whether to Include or Exclude HQ, Support, Debt, and
Other Costs as Costs of Producing Phosphate Rock
Comment 5: Whether to Include a Profit Component
Comment 6: Whether Freight Costs Are Double Counted in the
Mining Costs
Comment 7: The Appropriate Quantity for the Mining Rights for
LTAR Benefit Calculation
Comment 8: The Appropriate Analysis for the Provision of Mining
Rights for LTAR
Creditworthiness
Comment 9: Whether Commerce Correctly Analyzed OCP S.A. (OCP)'s
Financial Ratios
Comment 10: Whether OCP Is Uncreditworthy in 2018
Comment 11: Whether Commerce Should Consider OCP's Long-Term
Loans in the Creditworthiness Analysis
Comment 12: Whether Commerce Misinterpreted OCP's Credit Ratings
Authority Determinations
Comment 13: Whether BCP \7\ Is an Authority and Provides a
Financial Contribution
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\7\ Banque Centrale Populaire (BCP).
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Comment 14: Whether Al Mada and AWB \8\ Are Authorities and
Provide a Financial Contribution
---------------------------------------------------------------------------
\8\ Attijariwafa Bank Group (AWB).
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OCP 2016 and 2018 Bond Issuance
Comment 15: Whether OCP's 2016 Bond Issue Conferred a Benefit
Comment 16: Whether OCP's Bond Issuance Is Specific
Comment 17: Whether Commerce Should Revise the Uncreditworthy
Benchmark Interest Rate
Loans
Comment 18: Whether Direct Loans From AWB, BCP, and CAM \9\ Are
Countervailable
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\9\ Credit Agricole du Maroc (CAM).
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Comment 19: Whether the Provision of Loan Guarantees Is
Countervailable
Tax Programs
Comment 20: Whether Commerce Overstated Taxable Income for the
Tax Incentives for Export Operations Program
Comment 21: Whether Commerce Should Adjust OCP's Cash Deposit
Rate
Comment 22: Whether the Reductions in Tax Fines and Penalties Is
Specific
Value-Added Tax (VAT)
Comment 23: Whether the MAD \10\ 20.5 Billion VAT Refund Is
Countervailable
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\10\ Morocco dirhams (MAD).
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Comment 24: Whether VAT Exemptions for Capital Goods, Machinery
and Equipment Are Countervailable
Other Subsidies
Comment 25: Whether the Provision of Phosphogypsum Waste
Disposal Is Countervailable
Comment 26: Whether the Provision of Phosphogypsum Waste
Disposal Was Properly Initiated
Comment 27: Whether the Provision of Rail Service for LTAR Is
Specific
VII. Recommendation
[FR Doc. 2021-03011 Filed 2-12-21; 8:45 am]
BILLING CODE 3510-DS-P