Urea Ammonium Nitrate Solutions From the Republic of Trinidad and Tobago: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With the Final Antidumping Duty Determination, 68640-68642 [2021-26314]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 86, Number 230 (Friday, December 3, 2021)]
[Notices]
[Pages 68640-68642]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26314]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-274-809]


Urea Ammonium Nitrate Solutions From the Republic of Trinidad and 
Tobago: Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination With the Final Antidumping Duty 
Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to the sole known 
producer/exporter of urea ammonium nitrate solutions (UAN) from the 
Republic of Trinidad and Tobago (Trinidad and Tobago) for the period of 
investigation (POI) January 1, 2020, through December 31, 2020. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable December 3, 2021.

FOR FURTHER INFORMATION CONTACT: Ariela Garvett, AD/CVD Operations, 
Office IV, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-3609.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on July 26, 
2021.\1\ On August 24, 2021, Commerce postponed the preliminary 
determination of this investigation to November 29, 2021.\2\ For a 
complete description of the events that followed the initiation of this 
investigation, see the Preliminary Decision Memorandum.\3\ A list of 
topics discussed in the Preliminary Decision Memorandum is included as 
Appendix II to this notice. The Preliminary 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 
Preliminary Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \1\ See Urea Ammonium Nitrate Solutions from the Russian 
Federation and the Republic of Trinidad and Tobago: Initiation of 
Countervailing Duty Investigations, 86 FR 40004 (July 26, 2021) 
(Initiation Notice).
    \2\ See Urea Ammonium Nitrate Solutions from the Russian 
Federation and the Republic of Trinidad and Tobago: Postponement of 
Preliminary Determinations in the Countervailing Duty 
Investigations, 86 FR 47296 (August 24, 2021).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Countervailing Duty Investigation 
of Urea Ammonium Nitrate Solutions from the Republic of Trinidad and 
Tobago,'' dated concurrently with, and hereby adopted by, this 
notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is UAN from Trinidad and 
Tobago. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ No interested party 
commented on the scope of this investigation as it appeared in the 
Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 86 FR 40005.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient,

[[Page 68641]]

and that the subsidy is specific.\6\ For a full description of the 
methodology underlying our preliminary conclusions, see the Preliminary 
Decision Memorandum.
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    \6\ 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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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final determination in this countervailing duty (CVD) 
investigation with the final determination in the companion antidumping 
duty (AD) investigation of UAN from Trinidad and Tobago based on a 
request made by the petitioner.\7\ Consequently, the final CVD 
determination will be issued on the same date as the final AD 
determination, which is currently scheduled to be issued no later than 
April 11, 2022, unless postponed.
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    \7\ See Petitioner's Letter, ``Urea Ammonium Nitrate Solutions 
from the Republic of Trinidad and Tobago: Petitioner's Request to 
Align Final Countervailing Duty Determination with the Companion 
Antidumping Duty Final Determination,'' dated November 22, 2021. The 
petitioner is CF Industries Nitrogen, LLC and its subsidiaries, 
Terra Nitrogen, Limited Partnership and Terra International 
(Oklahoma) LLC.
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All-Others Rate

    Sections 703(d)(1)(A)(i) and 705(c)(5)(A) of the Act provide that 
in the preliminary determination, Commerce shall determine an estimated 
all-others rate for companies not individually examined. Pursuant to 
section 705(c)(5)(A)(i) of the Act, this rate shall normally be an 
amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act.
    Commerce calculated an individual estimated countervailable subsidy 
rate for Methanol Holdings (Trinidad) Limited (MHTL), the only 
individually examined producer/exporter in this investigation. Because 
the only individually calculated rate is not zero, de minimis, or based 
entirely on facts otherwise available, the rate calculated for MHTL is 
the rate assigned to all other producers and exporters not individually 
examined in this investigation, pursuant to section 705(c)(5)(A)(i) of 
the Act.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            ad valorem
                                                             (percent)
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Methanol Holdings (Trinidad) Limited....................            1.83
All Others..............................................            1.83
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Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation entered, or withdrawn from warehouse, 
for consumption on or after the date of publication of this notice in 
the Federal Register. Further, pursuant to 19 CFR 351.205(d), Commerce 
will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Disclosure

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

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination. 
Normally, Commerce verifies information using standard procedures, 
including an on-site examination of original accounting, financial, and 
sales documentation. However, due to current travel restrictions in 
response to the global COVID-19 pandemic, Commerce is unable to conduct 
on-site verification in this investigation. Accordingly, we intend to 
verify the information relied upon in making the final determination 
through alternative means in lieu of an on-site verification.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. Interested parties 
will be notified of the timeline for the submission of case briefs and 
written comments at a later date. Rebuttal briefs, limited to issues 
raised in case briefs, may be submitted no later than seven days after 
the deadline date for case briefs.\8\ Note that Commerce has 
temporarily modified certain of its requirements for serving documents 
containing business proprietary information, until further notice.\9\ 
Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case 
briefs or rebuttal briefs in this investigation are encouraged to 
submit with each argument: (1) A statement of the issue; (2) a brief 
summary of the argument; and (3) a table of authorities.
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    \8\ See 19 CFR 351.309; see also Temporary Rule Modifying AD/CVD 
Service Requirements Due to COVID-19, 85 FR 17006, 17007 (March 26, 
2020) (Temporary Rule); and 19 CFR 351.303 (for general filing 
requirements).
    \9\ See Temporary Rule, 85 FR 17006; see also Temporary Rule 
Modifying AD/CVD Service Requirements Due to COVID-19; Extension of 
Effective Period, 85 FR 41363 (July 10, 2020).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at a time and date to be 
determined. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If 
Commerce's final determination is affirmative, the ITC will make its 
final injury determination before the later of 120 days after the date 
of this preliminary determination or 45 days after the final 
determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).

    Dated: November 29, 2021.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is all mixtures of 
urea and ammonium nitrate in aqueous or ammonia solution, regardless 
of nitrogen concentration by weight, and regardless of the presence 
of

[[Page 68642]]

additives, such as corrosion inhibiters and soluble micro or 
macronutrients (UAN).
    Subject merchandise includes merchandise matching the above 
description that has been processed in a third country, including by 
commingling, diluting, adding or removing additives, or performing 
any other processing that would not otherwise remove the merchandise 
from the scope of the investigations if performed in the subject 
country.
    The scope also includes UAN that is commingled with UAN from 
sources not subject to these investigations. Only the subject 
component of such commingled products is covered by the scope of 
these investigations.
    The covered merchandise is currently classified in the 
Harmonized Tariff Schedule of the United States (HTSUS) at 
subheading 3102.80.0000. Although the HTSUS subheading is provided 
for convenience and customs purposes, the written description of the 
scope is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation
V. Benchmarks and Interest Rates
VI. Analysis of Programs
VII. Recommendation

[FR Doc. 2021-26314 Filed 12-2-21; 8:45 am]
BILLING CODE 3510-DS-P