Frozen Warmwater Shrimp From the Socialist Republic of Vietnam: Final Affirmative Countervailing Duty Determination, 85500-85502 [2024-24955]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 89, Number 208 (Monday, October 28, 2024)]
[Notices]
[Pages 85500-85502]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-24955]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-552-838]


Frozen Warmwater Shrimp From the Socialist Republic of Vietnam: 
Final Affirmative Countervailing Duty Determination

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of frozen warmwater shrimp (shrimp) from the Socialist Republic of 
Vietnam (Vietnam). The period of investigation (POI) is January 1, 
2022, through December 31, 2022.

DATES: Applicable October 28, 2024.

FOR FURTHER INFORMATION CONTACT: Adam Simons, AD/CVD Operations, Office 
IX, Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, 
DC 20230; telephone: (202) 482-6172.

SUPPLEMENTARY INFORMATION:

Background

    On April 1, 2024, Commerce published its Preliminary Determination 
in the Federal Register and invited interested parties to comment.\1\ 
On July 22, 2024, Commerce tolled certain deadlines in this 
administrative proceeding by seven days.\2\ The deadline for the final 
determination is now October 21, 2024. For a complete discussion of the 
events that followed the Preliminary Determination, see the Issues and 
Decision Memorandum.\3\
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    \1\ See Frozen Warmwater Shrimp from the Socialist Republic of 
Vietnam: Preliminary Affirmative Countervailing Duty Determination, 
and Alignment of Final Determination with Final Antidumping Duty 
Determination, 89 FR 22374 (April 1, 2024) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
    \2\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 22, 2024.
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination of the Countervailing Duty Investigation of 
Frozen Warmwater Shrimp from the Socialist Republic of Vietnam,'' 
dated concurrently with, and hereby adopted by, this notice (Issues 
and Decision Memorandum).
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    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://access.trade.gov/public/FRNoticesListLayout.aspx.

Scope of the Investigation

    The merchandise covered by the scope of this investigation is 
shrimp from Vietnam. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    We received no comments from interested parties on the scope of the 
investigation as it appeared in the Preliminary Determination. 
Therefore, we made no changes to the scope of the investigation.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), in May and June, 2024, Commerce conducted verification of 
the subsidy information reported by the Government of Vietnam (GOV), 
Soc Trang Seafood

[[Page 85501]]

Joint Stock Company (STAPIMEX), and STAPIMEX's supplier Giang Hong 
Phuong for use in our final determination. We used standard 
verification procedures, including an examination of relevant 
accounting records and original source documents provided by STAPIMEX, 
Giang Hong Phuong, and the GOV.\4\
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    \4\ See Memoranda, ``Verification of Soc Trang Seafood Joint 
Stock Company,'' dated August 14, 2024; ``Verification of the 
Government of the Socialist Republic of Vietnam,'' dated August 29, 
2024; and ``Verification of Giang Hong Phuong,'' dated July 31, 
2024.
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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 interested parties 
in this investigation are discussed 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.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found to be 
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.
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    \5\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; see also 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 otherwise available, including with an adverse inference, 
pursuant to sections 776(a) and (b) of the Act. For a full discussion 
of our application of adverse facts available (AFA), see the 
Preliminary Determination,\6\ and the Issues and Decision Memorandum at 
the section entitled ``Uses of Facts Available and Application of 
Adverse Inferences.''
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    \6\ See Preliminary Determination PDM at 6-15.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the information at verification 
and comments received from interested parties, we made changes to the 
subsidy rate calculations for Thong Thuan Company Limited to include 
the subsidy programs included in the Post-Preliminary Analysis Memo.\7\ 
For a discussion of these changes, see the Issues and Decision 
Memorandum.
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    \7\ See Memorandum, ``Post-Preliminary Analysis in the 
Countervailing Duty Investigation of Frozen Warmwater Shrimp from 
the Socialist Republic of Vietnam,'' dated May 23, 2024; see also 
Issues and Decision Memorandum at Appendix for the revised AFA rate 
calculation.
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All-Others Rate

    Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will 
determine an all-others rate equal to the weighted-average 
countervailable subsidy rates established for exporters and/or 
producers individually investigated, excluding any zero and de minimis 
countervailable subsidy rates, and any rates determined entirely under 
section 776 of the Act. We continue to assign a rate based entirely on 
facts available to Thong Thuan Company Limited. Therefore, the only 
rate that that is not zero, de minimis, or based entirely on facts 
otherwise available is the rate calculated for STAPIMEX. Consequently, 
we continue to assign the rate calculated for STAPIMEX as the rate for 
all other producers and exporters, pursuant to section 705(c)(5)(A)(i) 
of the Act.

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist for the period January 1, 2022, through December 
31, 2022:

------------------------------------------------------------------------
                                                         Subsidy rate
                       Company                            (percent ad
                                                           valorem)
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Soc Trang Seafood Joint Stock Company...............                2.84
Thong Thuan Company Limited.........................            * 221.82
All Others..........................................                2.84
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* Rate based on AFA.

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 publication of this notice 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 collect cash deposits and suspend 
liquidation of entries of subject merchandise from Vietnam that were 
entered, or withdrawn from warehouse, for consumption, on or after 
April 1, 2024, the date of the publication of the Preliminary 
Determination in the Federal Register.\8\ In accordance with section 
703(d) of the Act, we instructed CBP to discontinue the suspension of 
liquidation of all entries of subject merchandise entered or withdrawn 
from warehouse, on or after July 30, 2024, but to continue the 
suspension of liquidation of all entries of subject merchandise on or 
before July 29, 2024.
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    \8\ See Preliminary Determination, 89 FR at 22374.
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    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order, reinstate the suspension of liquidation under section 706(a) of 
the Act, and require a cash deposit of estimated countervailing duties 
for entries of subject merchandise in the amounts indicated above. 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 cancelled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of shrimp from 
Vietnam. Because the final determination is affirmative, in accordance 
with section 705(b) of the Act, the ITC will make its final 
determination as to whether the domestic industry in the United States 
is materially injured, or threatened with

[[Page 85502]]

material injury, by reason of imports of shrimp from Vietnam no later 
than 45 days after our final determination. 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. If the ITC determines that material injury or threat of 
material injury does not exist, this proceeding will be terminated and 
all cash deposits will be refunded. If the ITC determines that such 
injury does exist, Commerce will issue a countervailing duty order 
directing CBP to assess, upon further instruction by Commerce, 
countervailing duties on all imports of the subject merchandise that 
are entered, or withdrawn, for consumption on or after the effective 
date of the suspension of liquidation, as discussed above in the 
``Continuation of Suspension of Liquidation'' section.

Administrative Protective Order

    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 in accordance with 
sections 705(d) and 777(i) of the Act, and 19 CFR 351.210(c).

    Dated: October 21, 2024.
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 scope of this investigation includes certain frozen 
warmwater shrimp and prawns whether wild-caught (ocean harvested) or 
farm-raised (produced by aquaculture), head-on or head-off, shell-on 
or peeled, tail-on or tail-off, deveined or not deveined, cooked or 
raw, or otherwise processed in frozen form. ``Tails'' in this 
context means the tail fan, which includes the telson and the 
uropods.
    The frozen warmwater shrimp and prawn products included in the 
scope, regardless of definitions in the Harmonized Tariff Schedule 
of the United States (HTSUS), are products which are processed from 
warmwater shrimp and prawns through freezing and which are sold in 
any count size.
    The products described above may be processed from any species 
of warmwater shrimp and prawns. Warmwater shrimp and prawns are 
generally classified in, but are not limited to, the Penaeidae 
family. Some examples of the farmed and wild-caught warmwater 
species include, but are not limited to, whiteleg shrimp (Penaeus 
vannemei), banana prawn (Penaeus merguiensis), fleshy prawn (Penaeus 
chinensis), giant river prawn (Macrobrachium rosenbergii), giant 
tiger prawn (Penaeus monodon), redspotted shrimp (Penaeus 
brasiliensis), southern brown shrimp (Penaeus subtilis), southern 
pink shrimp (Penaeus notialis), southern rough shrimp (Trachypenaeus 
curvirostris), southern white shrimp (Penaeus schmitti), blue shrimp 
(Penaeus stylirostris), western white shrimp (Penaeus occidentalis), 
and Indian white prawn (Penaeus indicus).
    Frozen shrimp and prawns that are packed with marinade, spices 
or sauce are included in the scope. In addition, food preparations, 
which are not ``prepared meals,'' that contain more than 20 percent 
by weight of shrimp or prawn are also included in the scope.
    Excluded from the scope are: (1) breaded shrimp and prawns 
(HTSUS subheading 1605.21.1020); (2) shrimp and prawns generally 
classified in the Pandalidae family and commonly referred to as 
coldwater shrimp, in any state of processing; (3) fresh shrimp and 
prawns whether shell-on or peeled (HTSUS subheadings 0306.36.0020 
and 0306.36.0040); (4) shrimp and prawns in prepared meals (HTSUS 
subheadings 1605.21.0500 and 1605.29.0500); (5) dried shrimp and 
prawns; (6) canned warmwater shrimp and prawns (HTSUS subheading 
1605.29.1040); and (7) certain battered shrimp. Battered shrimp is a 
shrimp-based product: (1) that is produced from fresh (or thawed-
from-frozen) and peeled shrimp; (2) to which a ``dusting'' layer of 
rice or wheat flour of at least 95 percent purity has been applied; 
(3) with the entire surface of the shrimp flesh thoroughly and 
evenly coated with the flour; (4) with the non-shrimp content of the 
end product constituting between four and ten percent of the 
product's total weight after being dusted, but prior to being 
frozen; and (5) that is subjected to individually quick frozen (IQF) 
freezing immediately after application of the dusting layer. When 
dusted in accordance with the definition of dusting above, the 
battered shrimp product is also coated with a wet viscous layer 
containing egg and/or milk, and par-fried.
    The products covered by the scope are currently classified under 
the following HTSUS subheadings: 0306.17.0004, 0306.17.0005, 
0306.17.0007, 0306.17.0008, 0306.17.0010, 0306.17.0011, 
0306.17.0013, 0306.17.0014, 0306.17.0016, 0306.17.0017, 
0306.17.0019, 0306.17.0020, 0306.17.0022, 0306.17.0023, 
0306.17.0025, 0306.17.0026, 0306.17.0028, 0306.17.0029, 
0306.17.0041, 0306.17.0042, 1605.21.1030, and 1605.29.1010. These 
HTSUS subheadings are provided for convenience and for customs 
purposes only and are not dispositive, but rather the written 
description of the scope is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Subsidies Valuation
IV. Use of Facts Available and Adverse Inferences
V. Benchmarks
VI. Analysis of Programs
VII. Discussion of the Issues
    Comment 1: Whether the Accelerated Depreciation and Increase of 
Deductible Expense Program is Specific
    Comment 2: Whether to Countervail Lending Programs Deferred at 
the Preliminary Determination
    Comment 3: Whether to Apply AFA to Water in the Provision of 
Utilities at Reduced Rates in Industrial and Export Processing Zones 
Program
    Comment 4: Whether to Select an Alternative Land for Less Than 
Adequate Remuneration (LTAR) Benchmark
    Comment 5: Whether to Reconsider the Countervailability of the 
Import Duty Exemptions for Imports Used to Produce Exported Goods 
Program
    Comment 6: Whether to Continue to Find Certain Programs Not 
Countervailable
    Comment 7: Whether Commerce Should Implement Section 771B of the 
Act
VIII. Recommendation

[FR Doc. 2024-24955 Filed 10-25-24; 8:45 am]
BILLING CODE 3510-DS-P