[Federal Register Volume 78, Number 160 (Monday, August 19, 2013)]
[Notices]
[Pages 50385-50387]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-20167]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-854]


Certain Frozen Warmwater Shrimp from India: Final Affirmative 
Countervailing Duty Determination

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and/or 
exporters of certain frozen warmwater shrimp (frozen shrimp) from 
India. For information on the estimated subsidy rates, see the 
``Suspension of Liquidation'' section of this notice.

DATES: Effective Date: August 19, 2013.

FOR FURTHER INFORMATION CONTACT: Thomas Schauer or Shane Subler, AD/CVD 
Operations, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230; telephone: (202) 482-0410 and (202) 482-0189, 
respectively.

Background

    The petitioner in this investigation is the Coalition of Gulf 
Shrimp Industries (Petitioner).\1\ This investigation covers 42 
government programs. In addition to the Government of India, the 
company respondents in this investigation are Devi Fisheries Limited 
(Devi Fisheries), and Devi Seafoods Ltd. (Devi Seafoods).
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    \1\ The members of the Coalition of Gulf Shrimp Industries are: 
Bayou Shrimp Processors, Inc.; Bluewater Shrimp Company, Inc.; 
Carson & Co., Inc.; C.F. Gollott & Sons Seafood, Inc.; Dean 
Blanchard Seafood, Inc.; Dominick Seafood; Fisherman's Reef Packing 
Plant; Golden Gulf Coast Pkg. Co., Inc. (and Gollott's Oil Dock & 
Ice House); Graham Fisheries, Inc.; Graham Shrimp, Inc.; Gulf Crown 
Seafood Co., Inc.; Gulf Fish Inc.; Gulf Island Shrimp & Seafood, 
LLC; Gulf Pride Enterprises, Inc.; Hi-Seas of Dulac, Inc.; Indian 
Ridge Shrimp Co.; JBS Packing Co., Inc.; Lafitte Frozen Foods Corp.; 
M&M Shrimp (Biloxi Freezing and Processing); Ocean Springs Seafood 
Market, Inc.; Paul Piazza & Sons, Inc.; R.A. Lesso Brokerage Co., 
Inc.; Sea Pearl Seafood Co., Inc.; Smith and Sons Seafood; Tidelands 
Seafood Co., Inc.; Tommy's Seafood; Vincent Piazza & Sons Seafood, 
Inc.; Wood's Fisheries; Mariah Jade Shrimp Company, LLC; David 
Chauvin's Seafood Company, LLC; and Rountree Enterprises, Inc. (dba 
Leonard & Sons Shrimp Co. and R&R Fisheries).
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Period of Investigation

    The period for which we are measuring subsidies, or period of 
investigation, is April 1, 2011, through March 30, 2012.

Case History

    The events that have occurred since the Department published the 
Preliminary Determination on June 4, 2013,\2\ are discussed in the 
Memorandum to Paul Piquado, Assistant Secretary for Import 
Administration, ``Issues and Decision Memorandum for the Final 
Determination in the Countervailing Duty Investigation of Certain 
Frozen Warmwater Shrimp from India'' (Decision Memorandum).\3\
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    \2\ See Certain Frozen Warmwater Shrimp From India: Preliminary 
Countervailing Duty Determination, 78 FR 33344 (June 4, 2013) 
(Preliminary Determination).
    \3\ Public versions of all business proprietary documents and 
all public documents are on file electronically via Import 
Administration's Antidumping and Countervailing Duty Centralized 
Electronic Service System (IA ACCESS). Access to IA ACCESS is 
available to registered users at http://iaaccess.trade.gov and in 
the Department's Central Records Unit (CRU), room 7046 of the main 
Department of Commerce building.
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Scope Comments

    On March 28, 2013, Petitioner asked the Department to clarify that 
the scope of this investigation does not include brine-frozen 
shrimp.\4\ We have

[[Page 50386]]

addressed this request and comments thereon in the Memorandum to Paul 
Piquado, Assistant Secretary for Import Administration, ``Certain 
Frozen Warmwater Shrimp from Ecuador, India, Indonesia, Malaysia, 
People's Republic of China, Thailand, and Socialist Republic of 
Vietnam--Final Scope Memorandum Regarding Onboard Brine-Frozen 
Shrimp,'' which is hereby adopted by this notice.
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    \4\ See Letter from Petitioner, ``Countervailing Duty 
Investigation on Certain Frozen Warmwater Shrimp from Ecuador (C-
331-803)--Request for Scope Clarification'' (March 28, 2013).
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Scope of the Investigation

    This investigation covers certain frozen warmwater shrimp and 
prawns, whether wild-caught (ocean harvested) or farm-raised (produced 
by aquaculture), head-on or head-off, shell-on or peeled, tail-on or 
tail-off, deveined or not deveined, cooked or raw, or otherwise 
processed in frozen form, regardless of size. See Appendix I for a 
complete description of the scope of this investigation.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Decision Memorandum, which is hereby adopted by this 
notice. A list of subsidy programs and the issues that parties have 
raised, and to which we responded in the Decision Memorandum, is 
attached to this notice as Appendix II. The Decision Memorandum is a 
public document and is on file electronically via IA ACCESS. In 
addition, a complete version of the Decision Memorandum can be accessed 
directly on the Internet at http://www.trade.gov/ia/. The signed 
Decision Memorandum and the electronic version of the Decision 
Memorandum are identical in content.

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of the Tariff Act of 
1930 (the Act), we have calculated a rate for each company respondent. 
Section 705(c)(5)(A)(i) of the Act states that, for companies not 
individually investigated, we will determine an ``all others'' rate 
equal to the weighted average countervailable subsidy rates established 
for exporters and producers individually investigated, excluding any 
zero and de minimis countervailable subsidy rates, and any rates 
determined entirely under section 776 of the Act.
    Notwithstanding the language of section 705(c)(5)(A)(i) of the Act, 
we have not calculated the ``all others'' rate by weight averaging the 
rates of Devi Fisheries and Devi Seafoods, because doing so risks 
disclosure of proprietary information. Therefore, we have calculated a 
simple average of Devi Fisheries' and Devi Seafoods' rates. Since both 
Devi Fisheries and Devi Seafoods received countervailable export 
subsidies and the ``all others'' rate is an average based on the 
individually investigated respondents, the ``all others'' rate includes 
export subsidies.
    We determine the total estimated net countervailable subsidy rates 
to be:

------------------------------------------------------------------------
                  Company                           Subsidy rate
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Devi Fisheries Limited....................  10.54 percent (ad valorem).
Devi Seafoods Ltd.........................  11.14 percent (ad valorem).
All Others................................  10.84 percent (ad valorem).
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    As a result of our Preliminary Determination, and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (CBP) to suspend liquidation of all entries of subject 
merchandise from India that were entered or withdrawn from warehouse, 
for consumption on or after June 4, 2013, the date of publication of 
the Preliminary Determination in the Federal Register.
    In accordance with section 705(c)(1)(B)(ii) of the Act, we are 
directing CBP to continue to suspend liquidation of all imports of the 
subject merchandise from India that are entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. The suspension of liquidation 
instructions will remain in effect until further notice. However, as 
discussed in the Decision Memorandum, we are adjusting the cash deposit 
rates to account for program-wide changes described under 19 CFR 
351.526.\5\ Therefore, we are directing CBP to require a cash deposit 
for entries of subject merchandise in the amounts indicated below.
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    \5\ See Decision Memorandum, at 9 and 19.

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                  Company                         Cash deposit rate
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Devi Fisheries Limited....................  6.16 percent (ad valorem).
Devi Seafoods Ltd.........................  5.54 percent (ad valorem).
All Others................................  5.85 percent (ad valorem).
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    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
(CVD) order under section 706(a) of the Act, and we will require a cash 
deposit of estimated CVDs for such 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 canceled. Moreover, in 
accordance with section 705(c)(2) of the Act, we will instruct CBP to 
release any bond or other security and refund any cash deposits that 
were collected for shipments of subject merchandise entered, or 
withdrawn from warehouse on or after June 4, 2013, the date that we 
instructed CBP to suspend liquidation following the Preliminary 
Determination. The interest provisions of section 778 of the Act do not 
apply.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Import Administration.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation that is subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: August 12, 2013.
Paul Piquado,
Assistant Secretary for Import Administration.

Appendix I

Scope of the Investigation

    The products covered by this investigation are certain frozen 
warmwater shrimp and prawns, whether wild-caught (ocean harvested) 
or farm-raised (produced by

[[Page 50387]]

aquaculture), head-on or head-off, shell-on or peeled, tail-on or 
tail-off,\6\ deveined or not deveined, cooked or raw, or otherwise 
processed in frozen form, regardless of size.
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    \6\ ``Tails'' in this context means the tail fan, which includes 
the telson and the uropods.
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    The frozen warmwater shrimp and prawn products included in the 
scope, regardless of definitions in the Harmonized Tariff Schedule 
of the United States (``HTSUS''), are products which are processed 
from warmwater shrimp and prawns through freezing and which are sold 
in any count size.
    The products described above may be processed from any species 
of warmwater shrimp and prawns. Warmwater shrimp and prawns are 
generally classified in, but are not limited to, the Penaeidae 
family. Some examples of the farmed and wild-caught warmwater 
species include, but are not limited to, whiteleg shrimp (Penaeus 
vannemei), banana prawn (Penaeus merguiensis), fleshy prawn (Penaeus 
chinensis), giant river prawn (Macrobrachium rosenbergii), giant 
tiger prawn (Penaeus monodon), redspotted shrimp (Penaeus 
brasiliensis), southern brown shrimp (Penaeus subtilis), southern 
pink shrimp (Penaeus notialis), southern rough shrimp (Trachypenaeus 
curvirostris), southern white shrimp (Penaeus schmitti), blue shrimp 
(Penaeus stylirostris), western white shrimp (Penaeus occidentalis), 
and Indian white prawn (Penaeus indicus).
    Frozen shrimp and prawns that are packed with marinade, spices 
or sauce are included in the scope. In addition, food preparations 
(including dusted shrimp), which are not ``prepared meals,'' that 
contain more than 20 percent by weight of shrimp or prawn are also 
included in the scope. Excluded from the scope are: (1) Breaded 
shrimp and prawns; (2) shrimp and prawns generally classified in the 
Pandalidae family and commonly referred to as coldwater shrimp, in 
any state of processing; (3) fresh shrimp and prawns whether shell-
on or peeled; (4) shrimp and prawns in prepared meals; (5) dried 
shrimp and prawns; (6) canned warmwater shrimp and prawns; and (7) 
certain ``battered shrimp'' (see below).
    ``Battered shrimp'' is a shrimp-based product: (1) That is 
produced from fresh (or thawed-from-frozen) and peeled shrimp; (2) 
to which a ``dusting'' ' layer of rice or wheat flour of at least 95 
percent purity has been applied; (3) with the entire surface of the 
shrimp flesh thoroughly and evenly coated with the flour; (4) with 
the non-shrimp content of the end product constituting between four 
and 10 percent of the product's total weight after being dusted, but 
prior to being frozen; and (5) that is subjected to individually 
quick frozen (``IQF'') freezing immediately after application of the 
dusting layer. When dusted in accordance with the definition of 
dusting above, the battered shrimp product is also coated with a wet 
viscous layer containing egg and/or milk, and par-fried.
    The products included in the scope of this investigation are 
currently classified under the following HTSUS subheadings: 
0306.17.00.03, 0306.17.00.06, 0306.17.00.09, 0306.17.00.12, 
0306.17.00.15, 0306.17.00.18, 0306.17.00.21, 0306.17.00.24, 
0306.17.00.27, 0306.17.00.40, 1605.21.10.30, and 1605.29.10.10. 
These HTSUS subheadings are provided for convenience and for customs 
purposes only and are not dispositive, but rather the written 
description of the scope is dispositive.

Appendix II

List of Comments and Issues in the Decision Memorandum

    Comment 1 Whether the Department Should Investigate Petitioner's 
Timely Filed New Subsidy Allegation
    Comment 2 Whether the Department Should Apply Adverse Facts 
Available to the DEPS Program
    Comment 3 Whether the Department Should Include the Benefits 
Found for the DEPS Program in the Final Cash Deposit Rates
    Comment 4 Whether the Department Used the Incorrect Rate for 
Exports of Prepared Shrimp in Its Calculation of the Benefit 
Received by Devi Seafoods from the Duty Drawback Program
    Comment 5 Whether the Department Should Correct the Calculation 
of the Benefit Received by Devi Seafoods under the Chapter 1B 
Program
    Comment 6 Whether the Department used an Incorrect Benchmark in 
the Calculation of Pre-Shipment Benefit on Export Financing 
Denominated in INR
    Comment 7 Whether the Department Erred in the Calculation of the 
Post-Shipment INR Benefits by using the Incorrect Number of Days for 
Several Post-Shipment INR Loans
    Comment 8 The Determination Not to Investigate VAT Exemptions
    Comment 9 Whether the Department Improperly Omitted Sales by 
Satya from the Denominator when Calculating the Benefit Received
[FR Doc. 2013-20167 Filed 8-16-13; 8:45 am]
BILLING CODE 3510-DS-P