[Federal Register Volume 78, Number 160 (Monday, August 19, 2013)]
[Notices]
[Pages 50389-50391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-20169]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-331-803]


Certain Frozen Warmwater Shrimp From Ecuador: 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 
Ecuador. 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: Joshua Morris and Austin Redington, 
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-
1779 and (202) 482-1664, respectively.

Background

    The petitioner in this investigation is the Coalition of Gulf 
Shrimp Industries (Petitioner).\1\ This investigation covers seven 
government programs. The respondents in this investigation are the 
Government of Ecuador (the GOE), and two companies--Promarisco S.A. 
(Promarisco) and Sociedad Nacional de Galapagos C.A. (Songa).
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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 January 1, 2011, through December 31, 2011.

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 Ecuador'' (Decision Memorandum), which is 
hereby adopted by this notice.\3\
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    \2\ See Certain Frozen Warmwater Shrimp From Ecuador: 
Preliminary Negative Countervailing Duty Determination, 78 FR 33347 
(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

[[Page 50390]]

brine-frozen shrimp.\4\ We have 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. 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 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 and the electronic versions of this memorandum are identical 
in content.

Use of Facts Otherwise Available, Including Adverse Inferences

    For purposes of this final determination, we have relied on facts 
available and in certain instances have applied an adverse inference 
(AFA) in accordance with sections 776(a) and (b) of the Tariff Act of 
1930, as amended (the Act), with regard to: (1) Provision of Commercial 
Concessions for Less Than Adequate Remuneration; (2) GOE Forgiveness of 
Land-Use Fees; (3) Preferential Loans from the National Finance 
Corporation and the National Development Bank; and, (4) Export 
Restraints on Raw and Unprocessed Shrimp. A full discussion of our 
decision to rely on facts available and AFA is presented in the 
Decision Memorandum under the section ``Use of Facts Otherwise 
Available and Adverse Inferences.''

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of 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.
    For companies not individually investigated, we have calculated an 
average rate as described in the Final Calculation Memoranda. See 
Memoranda to the File, ``Final Determination Calculation Memorandum for 
Promarisco S.A.'' and ``Final Determination Calculation Memorandum for 
Sociedad Nacional de Galapagos C.A.'' (Final Calculation Memoranda), 
which are hereby adopted by this notice.
    We determine the total estimated net countervailable subsidy rates 
to be:

------------------------------------------------------------------------
                         Company                           Subsidy rate
------------------------------------------------------------------------
Promarisco..............................................           13.51
Songa...................................................           10.13
All Others..............................................           11.68
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    In accordance with section 705(c)(1)(C) of the Act, we are 
directing United States Customs and Border Protection (CBP) to suspend 
liquidation of all imports of the subject merchandise from Ecuador that 
are entered, or withdrawn from warehouse, for consumption on or after 
the date of publication of this notice in the Federal Register, and to 
require a cash deposit for such entries of merchandise in the amounts 
indicated above. The suspension of liquidation will remain in effect 
until further notice.
    We will issue a countervailing duty order if the United States 
International Trade Commission (ITC) issues a final affirmative injury 
determination and we will instruct CBP to require a cash deposit of 
estimated countervailing duties for such entries of 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.

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 aquaculture), head-on or head-off, 
shell-on or peeled, tail-on or tail-off,\5\ deveined or not 
deveined, cooked or raw, or otherwise processed in frozen form, 
regardless of size.
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    \5\ ``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

[[Page 50391]]

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

A. General Issues

Comment 1 The Application of Section 771B of the Act (the 
Agricultural Processing Provision) to Subsidies to Fresh Shrimp 
Farmers
Comment 2 The Attribution of Fresh Shrimp Subsidies to Respondent 
Processors; Use of a Simple or Weighted Average
Comment 3 The Deferral of New Subsidy Allegations to Administrative 
Reviews
Comment 4 The Determination Not To Investigate Value-Added Tax (VAT) 
Exemptions

B. Company Specific Issues

Comment 5 Promarisco's Cross-Ownership, Sales Value, and Purchases 
of Fresh Shrimp
Comment 6 Clerical Error in Calculation of Songa's Preliminary 
Subsidy Rate

C. Preferential, Exempted, and Forgiveness of Land-Use Fees for 
Shrimp Farmers

Comment 7 Whether the GOE's Inter-Tidal Land Concessions Program Is 
Specific
Comment 8 The Appropriate Measure of Revenue Forgone Due to the 
GOE's Inter-Tidal Land Concessions Program
Comment 9 Benchmark for Measuring the Benefit Conferred by the GOE
Comment 10 Alleged GOE Forgiveness of Land-Use Fees
Comment 11 Songa's Minor Corrections
Comment 12 Promarisco's Unreported Land Concessions

D. Preferential Loans From the National Finance Corporation (CFN) 
and the National Development Bank (BNF)

Comment 13 Whether To Apply AFA To Loan Discovered at Verification

E. Export Restraints on Raw, Unprocessed Shrimp

Comment 14 Whether the GOE Imposed Export Restraints on Raw and 
Unprocessed Shrimp
[FR Doc. 2013-20169 Filed 8-16-13; 8:45 am]
BILLING CODE 3510-DS-P