[Federal Register Volume 84, Number 84 (Wednesday, May 1, 2019)]
[Notices]
[Pages 18482-18484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08830]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-884]


Countervailing Duty Investigation of Glycine From India: 
Affirmative Final Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of glycine from India during the period of investigation (POI), January 
1, 2017, through December 31, 2017.

DATES: Applicable May 1, 2019.

FOR FURTHER INFORMATION CONTACT: Davina Friedmann or Julie Geiger, AD/
CVD Operations, Office VI, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone (202) 482-0698 and (202) 
482-2057, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 4, 2018, Commerce published in the Federal Register 
the Preliminary Determination in the countervailing duty (CVD) 
investigation of glycine from India, which aligned the final 
determination in this CVD investigation with the final determination in 
the companion antidumping duty (AD) investigation of glycine from 
India.\1\ A summary of the events that occurred since Commerce 
published the Preliminary Determination may be found in the Issues and 
Decision Memorandum that is dated concurrently with this determination 
and hereby adopted by this notice.\2\
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    \1\ See Glycine from India: Preliminary Affirmative 
Countervailing Duty Determination and Alignment of Final 
Determination with Final Antidumping Duty Determination, 83 FR 44859 
(September 4, 2018) (Preliminary Determination), and accompanying 
Memorandum, ``Decision Memorandum for the Affirmative Preliminary 
Determination: Countervailing Duty Investigation of Glycine from 
India,'' dated August 27, 2018.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination of the Countervailing Duty Investigation of 
Glycine from India,'' dated concurrently with, and hereby adopted 
by, this notice (Issues and Decision Memorandum).
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    Commerce exercised its discretion to toll all deadlines affected by 
the partial federal government closure from December 22, 2018, through 
the resumption of operations on January 29, 2019.\3\ If the new 
deadline falls on a non-business day, in accordance with Commerce's 
practice, the deadline will become the next business day. Accordingly, 
the revised deadline for the final determination is now April 24, 2019.
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    \3\ See Memorandum to the Record from Gary Taverman, Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance, ``Deadlines 
Affected by the Partial Shutdown of the Federal Government,'' dated 
January 28, 2019. All deadlines in this segment of the proceeding 
have been extended by 40 days.
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Period of Investigation

    The POI is January 1, 2017, through December 31, 2017.

Scope of the Investigation

    The product covered by this investigation is glycine from India. 
For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    We invited parties to comment on Commerce's Preliminary Scope 
Decision Memorandum.\4\ Commerce has reviewed the briefs submitted by 
interested parties, considered the arguments therein, and has made no 
changes to the scope of the

[[Page 18483]]

investigation. For further discussion, see Commerce's Scope Comments 
Final Decision Memorandum.\5\
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    \4\ See Memorandum, ``Glycine from India, Japan, the People's 
Republic of China and Thailand: Scope Comments Decision Memorandum 
for the Preliminary Determinations,'' dated August 27, 2018 
(Preliminary Scope Decision Memorandum).
    \5\ See Memorandum, ``Glycine from India, Japan, the People's 
Republic of China and Thailand: Scope Comments Decision Memorandum 
for the Final Determinations,'' dated April 24, 2019 (Scope Comments 
Final Decision Memorandum).
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Analysis of Comments Received

    All issues raised in the parties' briefs are addressed in the 
Issues and Decision Memorandum, dated concurrently with, and hereby 
adopted by, this notice. A list of issues addressed is attached as 
Appendix II to this notice. The Issues and 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 
http://access.trade.gov; the Issues and Decision Memorandum is 
available to all parties in the Central Records Unit (CRU), Room B8024 
of the main Department of Commerce building. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Tariff Act of 1930, as amended (the Act). For each subsidy 
program found 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.\6\ For a full description of the methodology underlying our 
final determination, see the Issues and 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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Verification

    As provided in section 782(i) of the Act, in September and October 
2018, we conducted verification of the information reported by the 
Government of India, mandatory respondents Kumar Industries, India 
(Kumar) and Paras Intermediates Private Limited (Paras), as well as 
Avid Organics, Private Limited (Avid), for use in the final 
determination. We used standard verification procedures, including an 
examination of relevant accounting records and original source 
documents provided by the respondents.\7\
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    \7\ See Memorandum, ``Countervailing Duty Investigation of 
Glycine from India; Verification of Verification of Paras 
Intermediates Private Limited,'' dated November 23, 2018 (Paras 
Verification Report); see also Memorandum, ``Countervailing Duty 
Investigation of Glycine from India; Verification of the 
Questionnaire Responses Submitted by the Government of India,'' 
dated December 11, 2018 (GOI Verification Report); Memorandum, 
``Countervailing Duty Investigation of Glycine from India; 
Verification of Kumar Industries, India Questionnaire Responses,'' 
dated December 11, 2018 (Kumar Verification Report); Memorandum, 
``Countervailing Duty Investigation of Glycine from India; 
Verification of Avid Organics Pvt. Ltd. Questionnaire Responses,'' 
dated December 13, 2018 (Avid Verification Report).
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Changes Since the Preliminary Determination

    Based on our analysis of comments received, as well as minor 
corrections and additional items discovered at verification, we made 
certain changes to the respondents' subsidy rate calculations set forth 
in the Preliminary Determination. As a result of these changes, we have 
also revised the ``all-others'' rate. For a discussion of these 
changes, see the Issues and Decision Memorandum and the Final 
Calculation Memoranda.\8\
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    \8\ See Memoranda, ``Final Determination of Countervailing Duty 
Investigation of Glycine from India: Calculation Memorandum for 
Kumar Industries, India,'' ``Final Determination of Countervailing 
Duty Investigation of Glycine from India: Calculation Memorandum for 
Avid Organics Pvt. Ltd.,'' and ``Final Determination of 
Countervailing Duty Investigation of Glycine from India: Calculation 
Memorandum for Paras Intermediates Private Limited,'' each dated 
concurrently with this notice (Final Calculation Memoranda).
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All-Others Rate

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, Commerce 
calculated a countervailable subsidy rate for the individually examined 
exporters/producers of subject merchandise. Section 705(c)(5)(A) of the 
Act provides that Commerce shall determine an estimated all-others rate 
for companies not individually examined. This rate shall 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. In this investigation, we calculated individual 
estimated countervailable subsidy rates for Kumar and Paras that are 
not zero, de minimis, or based entirely on facts available. Because we 
do not have publicly ranged data from all company respondents with 
which to calculate the all-others rate using a weighted-average of 
individual estimated subsidy rates, pursuant to our practice,\9\ we 
calculated a simple average of the two responding companies' rates.
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    \9\ See, e.g., Countervailing Duty Investigation of Fine Denier 
Polyester Staple Fiber from the People's Republic of China: Final 
Affirmative Determination, 83 FR 3120, 3121 (January 23, 2018).
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Final Determination

    Commerce determines that the following final countervailable 
subsidy rates exist for this investigation:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
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Kumar Industries, India.....................................        6.99
Paras Intermediates Private Limited.........................        3.03
All Others..................................................        5.01
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Disclosure

    Commerce intends to disclose to interested parties the calculations 
performed in connection with this final determination within five days 
of any public announcement of our final determination in the Federal 
Register, 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 (2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of all entries of 
merchandise under consideration from India that were entered or 
withdrawn from warehouse, for consumption, on or after September 4, 
2018, the date of publication of the Preliminary Determination in the 
Federal Register. In accordance with section 703(d) of the Act, we 
issued instructions to CBP to discontinue the suspension of liquidation 
for CVD purposes for subject merchandise entered, or withdrawn from 
warehouse, on or after January 2, 2019, but to continue the suspension 
of liquidation of all entries from September 4, 2018, through January 
1, 2019.
    If the U.S. International Trade Commission (the ITC) issues a final 
affirmative injury determination, we will issue a CVD order and will 
reinstate the suspension of liquidation under section 706(a) of the Act 
and will require a cash deposit of estimated countervailing duties 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

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a result of the suspension of liquidation will be refunded or canceled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our final determination. Because Commerce's final determination 
is affirmative, in accordance with section 705(b)(2) 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 
material injury, by reason of imports or sales (or the likelihood of 
sales) for importation of glycine, no later than 45 days after this 
final determination. If the ITC determines that such injury does not 
exist, this proceeding will be terminated and all cash deposits posted 
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 entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as discussed above in the ``Suspension of 
Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice will serve as a reminder to the parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of propriety information disclosed under APO 
in accordance with 19 CFR 351.305. Timely written notification of 
return or 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 sanctionable violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 705(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).

    Dated: April 24, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is glycine at any 
purity level or grade. This includes glycine of all purity levels, 
which covers all forms of crude or technical glycine including, but 
not limited to, sodium glycinate, glycine slurry and any other forms 
of amino acetic acid or glycine. Subject merchandise also includes 
glycine and precursors of dried crystalline glycine that are 
processed in a third country, including, but not limited to, 
refining or any other processing that would not otherwise remove the 
merchandise from the scope of this investigation if performed in the 
country of manufacture of the in-scope glycine or precursors of 
dried crystalline glycine. Glycine has the Chemical Abstracts 
Service (CAS) registry number of 56-40-6. Glycine and glycine slurry 
are classified under Harmonized Tariff Schedule of the United States 
(HTSUS) subheading 2922.49.43.00. Sodium glycinate is classified in 
the HTSUS under 2922.49.80.00. While the HTSUS subheadings and CAS 
registry number are provided for convenience and customs purposes, 
the written description of the scope of this investigation is 
dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of Investigation
IV. Scope Comments
V. Changes from the Preliminary Determination
VI. Subsidies Valuation Information
VII. Analysis of Programs
    1. Duty Drawback Program
    2. Merchandise Export from India Scheme
    3. Export Promotion of Capital Goods Scheme
    4. Status Holder Incentive Scrip Scheme
    5. Land for Less than Adequate Remuneration
    6. State Government of Gujarat Water Supply Program
VIII. Discussion of the Issues
    Comment 1: Commerce's Reliance on Past Determinations
    Comment 2: Calculation of Kumar's Subsidy Rate
    Comment 3: Land for Less Than Adequate Remuneration by the 
Gujarat Industrial Development Corporation
    Comment 4: Duty Drawback Program Countervailability
    Comment 5: Export Promotion of Capital Goods Scheme 
Countervailability
    Comment 6: Status Holder Incentive Scrip Program 
Countervailability
    Comment 7: Merchandise Exporter Incentive Scheme 
Countervailability
    Comment 8: State Government of Gujarat Water Supply Program 
Countervailability
IX. Recommendation

[FR Doc. 2019-08830 Filed 4-30-19; 8:45 am]
BILLING CODE 3510-DS-P