[Federal Register Volume 78, Number 160 (Monday, August 19, 2013)]
[Notices]
[Pages 50391-50394]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-20170]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-989]


Certain Frozen Warmwater Shrimp From the People's Republic of 
China: 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 exporters 
of certain frozen warmwater shrimp from the People's Republic of China 
(PRC). 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: John Conniff or Eric Greynolds, Office 
8, Import Administration, U.S. Department of Commerce, Room CC116, 14th 
Street and Constitution Avenue NW., Washington, DC 20230; telephone: 
202-482-1109 or 202-482-6071, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The petitioner in this investigation is the Coalition of Gulf 
Shrimp Industries (Petitioner).\1\ This investigation covers 29 
government programs. The mandatory respondent in this investigation is 
Zhanjiang Guolian Aquatic Products, Co., Ltd. (Guolian), Zhanjiang 
Guolian Feed Co., Ltd. (Guolian Feed), Zhanjiang Guolian Aquatic Fry 
Technology Co., Ltd. (Guolian Fry), Zhanjiang Guotong Aquatic Co., Ltd. 
(Guotong) (collectively, the Guolian Companies).
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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 of investigation for which we are measuring subsidies 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 Certain Frozen Warmwater Shrimp from the People's 
Republic of China'' (Decision Memorandum), which is hereby adopted by 
this notice.\3\
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    \2\ See Certain Frozen Warmwater Shrimp From the People's 
Republic of China: Preliminary Countervailing Duty Determination, 78 
FR 33346 (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 Central Records Unit, 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 50392]]

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'' (Scope Memorandum), 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 the People's 
Republic of China (C-570-989)--Request for Scope Clarification'' 
(March 28, 2013).
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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, deveined or not deveined, cooked or raw, 
or otherwise processed in frozen form, regardless of size. For a 
complete description of the scope of the investigation, see Appendix I 
to this notice.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs submitted by parties in this investigation 
are addressed in the Decision Memorandum, dated concurrently with 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 and Scope Memoranda are public documents and are on 
file electronically via IA ACCESS. In addition, complete versions of 
the Decision and Scope Memoranda can be accessed directly on the 
Internet at http://www.trade.gov/ia/. The signed and the electronic 
versions of these memoranda 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 have applied an adverse inference in accordance with 
sections 776(a) and (b) of the Tariff Act of 1930, as amended (the Act) 
with regard to: (1) Additional grants received by the Guolian Companies 
not addressed by the Department in the Preliminary Determination; (2) 
three grants reported at verification; (3) central government grants in 
connection with the Zhanjiang Guolian's Penaeus Vannamei Boone (aka 
White Shrimp) Processing Project; and (4) export buyers credits from 
China Export-Import Bank (China ExIm) Program. A full discussion of our 
decision to rely on 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 an individual rate for the Goulian Companies. 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. Because we have calculated a 
rate for only the Goulian Companies, the rate for the Goulian Companies 
is the all others rate.
    We determine the total estimated net countervailable subsidy rates 
to be:

------------------------------------------------------------------------
                                                          Net subsidy ad
                    Producer/exporter                      valorem rate
                                                             (percent)
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Zhanjiang Guolian Aquatic Products, Co., Ltd. (Guolian),           18.16
 Zhanjiang Guolian Feed Co., Ltd. (Guolian Feed),
 Zhanjiang Guolian Aquatic Fry Technology Co., Ltd.
 (Guolian Fry), Zhanjiang Guotong Aquatic Co., Ltd.
 (Guotong) (collectively, the Guolian Companies)........
All Others..............................................           18.16
------------------------------------------------------------------------

    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 certain 
frozen warmwater shrimp from the PRC 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. 
Pursuant to section 705(c)(1)(B)(ii) of the Act, we are directing CBP 
to continue suspending liquidation on all imports of subject 
merchandise from the PRC that are entered, or withdrawn from warehouse, 
for consumption on or after the date of publication of this notice in 
the Federal Register. CBP shall require a cash deposit equal to the 
subsidy rates indicated in the chart above. These suspension-of-
liquidation instructions will remain in effect until further notice.
    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. 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

[[Page 50393]]

APO is a violation that is subject to sanction.
    This determination is 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 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 Subsidy Programs and Issues in the Decision 
Memorandum

A. Programs Determined To Be Countervailable

1. Preferential Lending to Shrimp Producers by the Central 
Government and Province of Guangdong
2. Central Government, Provincial, and Municipal Grants Under the 
Famous Brands Program
3. Value-Added (VAT) Exemptions on Imports of Shrimp Fry
4. VAT Refunds for Foreign Invested Enterprises (FIEs) on Purchases 
of Chinese-Made Equipment
5. VAT and Import Tariff Exemptions for FIEs and Certain Domestic 
Enterprises Using Imported Equipment in Encouraged Industries
6. Enterprise Income Tax Reduction for High and New Technology 
Enterprises
7. Tax Incentives for Enterprises Engaged in Aquaculture and 
Processing
8. Central Government Grants in Connection With the Zhanjiang 
Guolian's Penaeus Vannamei Boone (aka White Shrimp) Processing 
Project
9. Additional Grants Received by the Guolian Companies Not Addressed 
by the Department in the Preliminary Determination

B. Program Determined Not To Confer a Benefit During the POI

1. Grants Under the Guangdong Province Coastal Region Fishermen's 
Job Transferring Bill Fishery Industry Development Project Fund

C. Programs Determined To Be Not Used

1. Central Government Provision of Loan Guarantees at the Zhanjiang 
City Seafood Center
2. Export Sellers Credits from China Export-Import (Ex-Im) Bank
3. Guangdong Province Funds for Enterprise Outward Expansion
4. State Key Renovation Project Fund Program
5. Grants Under the Healthy Development of the Aquaculture Industry 
Program
6. Grants by the Central Government and the Zuzhou District 
Government in Connection with Construction of Fishery Industry Zones 
and Farms
7. Grants from the Huanhua City Government for Fry Breeding
8. Central Government Grants under the 2010 Aquatic Products Quality 
and Safety Supervision Program
9. Government Grants for Fishery Machinery and Equipment Purchases
10. Grants from Banfu County Government for Development of Breeding 
Stock
11. Two Free, Three Half Program
12. Export Oriented FIEs
13. Tax Refund for Profit Reinvestment in Export-Oriented 
Enterprises
14. Tax Incentives for FIEs in Special Economic Zones
15. VAT Refunds for Domestic Firms on Purchases of Chinese-Made 
Equipment
16. Central Government Provision of Rent for Less than Adequate 
Remuneration (LTAR) and Waiver of Management Fees at the Zhanjiang 
City Seafood Center
17. Central Government Provision of Cold Storage Services at the 
Zhanjiang City Seafood Center for LTAR
18. Export Credit Insurance from Sinosure
Comment 1: Application of the CVD Law to the PRC
Comment 2: Simultaneous Application of CVD and Non-Market Economy 
Measures
Comment 3: Proper ``Cut-Off'' Date to Apply in the Investigation
Comment 4: Whether the Department's Application of Section 771B of 
the Act Improperly Attributes Subsidy Benefits to Shrimp Suppliers
Comment 5: Whether the ``Substantially Dependent'' Criterion under 
Section 771B(1) of the Act is Satisfied
Comment 6: Whether the ``Limited Value'' Criterion Under Section 
771B(2) of the Act is Satisfied
Comment 7: Whether the Department Applied Section 771B of the Act in 
a Manner that Was Flawed
Comment 8: Denominator Used in Calculating the Net Subsidy Rate for 
Programs in Which the Department Attributed Benefits to Unaffiliated 
Farmers under Section 771B of the Act
Comment 9: Manner in Which the Department Conducted the 0.5 Percent 
Test When Attributing Benefits to Unaffiliated Farmers under Section 
771B of the Act
Comment 10: Whether the Guolian Companies Benefited from Subsidies 
Received in Connection with the Zhanjiang City Seafood Center
Comment 11: Whether the Department Should Initiate Investigations of 
Petitioner's Second Round of New Subsidy Allegations
Comment 12: Calculation of Guolian's Tax Exemption Benefit Using Tax 
Payments Made During the POI
Comment 13: Whether the Department Made Ministerial Errors in the 
Preliminary Determination That Should be Corrected for the Final 
Determination
Comment 14: Whether the Department Should Countervail the Three 
Grants

[[Page 50394]]

Reported at Verification and Whether the Department's Refusal to 
Collect Benefit Information Regarding the Grants is Contrary to Past 
Practice
Comment 15: Treatment of Additional Grants Received by the Guolian 
Companies Not Addressed by the Department in the Preliminary 
Determination
Comment 16: Whether to Apply AFA With Regard to the Export Buyer's 
Credits from the China Ex-Im Bank Program
Comment 17: Whether the Export Seller's Credits from the China Ex-Im 
Bank Program is Countervailable
Comment 18: Whether the GOC Provided Preferential Lending to the 
Aquaculture Industry
Comment 19: Whether the Benchmark Used to Measure Benefits under the 
Preferential Lending to the Aquaculture Industry Program is Flawed
Comment 20: Whether Tax Benefits under Article 28 of the Enterprise 
Income Tax Law for High or New Technology Enterprises is Not 
Countervailable Because It is Not Specific
Comment 21: Whether the Grants under the GOC White Shrimp Processing 
Project are Specific

[FR Doc. 2013-20170 Filed 8-16-13; 8:45 am]
BILLING CODE 3510-DS-P