[Federal Register Volume 86, Number 29 (Tuesday, February 16, 2021)]
[Notices]
[Pages 9479-9482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-03010]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-821-825]


Phosphate Fertilizers From the Russian Federation: Final 
Affirmative Countervailing Duty 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 phosphate fertilizers from the Russian Federation (Russia).

DATES: Applicable February 16, 2021.

FOR FURTHER INFORMATION CONTACT: George Ayache or William Horn, AD/CVD 
Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-2623 or (202) 
482-4868, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On November 30, 2020, Commerce published its Preliminary 
Determination.\1\ On December 21, 2020, Commerce released its Post-
Preliminary Analysis.\2\ For a complete description of

[[Page 9480]]

the events that followed the Preliminary Determination, see the Issues 
and Decision Memorandum.\3\ 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 
http://access.trade.gov. In addition, a complete version of the Issues 
and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.
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    \1\ See Phosphate Fertilizers from the Russian Federation: 
Preliminary Affirmative Countervailing Duty Determination, 85 FR 
76524 (November 30, 2020) (Preliminary Determination) and 
accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Decision Memorandum for the Post-
Preliminary Analysis of the Countervailing Duty Investigation of 
Phosphate Fertilizers from the Russian Federation,'' dated December 
21, 2020 (Post-Preliminary Analysis).
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination of the Countervailing Duty 
Investigation of Phosphate Fertilizers from the Russian 
Federation,'' dated concurrently with, and hereby adopted by, this 
notice (Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation is January 1, 2019, through December 
31, 2019.

Scope of the Investigation

    The products covered by this investigation are phosphate 
fertilizers from Russia. For a complete description of the scope of 
this investigation, see Appendix I.

Scope Comments

    No interested party commented on the scope of the investigation as 
it appeared in the Preliminary Determination. Therefore, no changes 
were made to the scope of the investigation.

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 parties in this 
investigation are addressed 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 to this notice.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Tariff Act of 1930, as amended (the Act). For each of the 
subsidy programs 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.\4\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \4\ 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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    In making this final determination, Commerce relied, in part, on 
facts available pursuant to section 776(a) of the Act. Additionally, as 
discussed in the Issues and Decision Memorandum, because one or more 
respondents did not act to the best of their ability in responding to 
our requests for information, we drew adverse inferences, where 
appropriate, in selecting from among the facts otherwise available, 
pursuant to section 776(b) of the Act. For further information, see the 
section ``Use of Facts Otherwise Available and Adverse Inferences'' in 
the accompanying Issues and Decision Memorandum.

Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of an on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Act.\5\
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    \5\ See Commerce's Letters, ``Countervailing Duty Investigation 
of Phosphate Fertilizers from the Russian Federation: Supplemental 
Questionnaire in Lieu of On-Site Verification,'' dated December 18, 
2020; see also EuroChem Group's Letter, ``Phosphate Fertilizers from 
Russia,'' dated December 28, 2020; and PhosAgro PJSC's Letter, 
``Countervailing Duty Investigation of Phosphate Fertilizers from 
Russia: PhosAgro PJSC In Lieu-of Verification Questionnaire 
Response,'' dated December 29, 2020.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, we made certain changes to Industrial Group Phosphorite LLC 
(Phosphorite) and Joint Stock Company Apatit (JSC Apatit)'s subsidy 
rate calculations. For a discussion of these changes, see the Issues 
and Decision Memorandum.

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:
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    \6\ Commerce has found the following companies to be cross-owned 
with Phosphorite: Mineral and Chemical Company EuroChem, JSC; NAK 
Azot, JSC; EuroChem Northwest, JSC; Joint Stock Company Kovdorksy 
GOK; EuroChem-Energo, LLC; EuroChem-Usolsky Potash Complex, LLC; 
EuroChem-BMU, LLC; JSC Nevinnomyssky Azot; and EuroChem Trading Rus, 
LLC.
    \7\ Commerce has found the following companies to be cross-owned 
with JSC Apatit: PhosAgro PJSC; PhosAgro[hyphen]Belgorod LLC; 
PhosAgro[hyphen]Don LLC; PhosAgro[hyphen]Kuban LLC; 
PhosAgro[hyphen]Kursk LLC; PhosAgro[hyphen]Lipetsk LLC; 
PhosAgro[hyphen]Orel LLC; PhosAgro[hyphen]Stavropol LLC; 
PhosAgro[hyphen]Volga LLC; PhosAgro[hyphen]SeveroZapad LLC; 
PhosAgro[hyphen]Tambov LLC; and Martynovsk AgrokhimSnab LLC.

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                                                           Subsidy rate
                         Company                            ad valorem
                                                             (percent)
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Industrial Group Phosphorite LLC \6\....................           47.05
Joint Stock Company Apatit \7\..........................            9.19
All Others..............................................           17.20
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All-Others Rate

    We continue to calculate the all-others rate using a weighted 
average of the individual estimated subsidy rates calculated for the 
examined respondents using each company's publicly-ranged data for the 
value of their exports to the United States of subject merchandise, in 
accordance with section 705(c)(5)(A)(i) of the Act.\8\
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    \8\ For discussion of the calculation of this rate, see 
Memorandum, ``Countervailing Duty Investigation of Phosphate 
Fertilizers from the Russian Federation: Final Determination 
Calculation of the All-Others Rate,'' dated February 8, 2021.
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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 the publication of this notice 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 (d)(2) of the Act, we instructed U.S. Customs 
and Border Protection to suspend liquidation of entries of subject 
merchandise as described in the scope of the investigation section 
entered, or withdrawn from warehouse, for consumption on or after 
November 30, 2020, the date of publication of the Preliminary 
Determination in the Federal Register.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order and require 
a cash deposit of estimated countervailing duties for entries of 
subject merchandise in the amounts indicated above, in accordance with 
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

[[Page 9481]]

of the suspension of liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, Commerce will notify 
the ITC of its final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of phosphate 
fertilizers from Russia. As Commerce's final determination is 
affirmative, in accordance with section 705(b) of the Act, the ITC will 
determine, within 45 days, whether the domestic industry in the United 
States is materially injured or threatened with material injury. 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.

Notification Regarding APO

    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 pursuant to sections 
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).

    Dated: February 8, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise covered by this investigation is phosphate 
fertilizers in all physical forms (i.e., solid or liquid form), with 
or without coating or additives such as anti-caking agents. 
Phosphate fertilizers in solid form are covered whether granular, 
prilled (i.e., pelletized), or in other solid form (e.g., powdered).
    The covered merchandise includes phosphate fertilizers in the 
following forms: Ammonium dihydrogenorthophosphate or monoammonium 
phosphate (MAP), chemical formula NH4H2PO4; diammonium 
hydrogenorthophosphate or diammonium phosphate (DAP), chemical 
formula (NH4)2HPO4; normal superphosphate (NSP), also known as 
ordinary superphosphate or single superphosphate, chemical formula 
Ca(H2PO4)2[middot]CaSO4; concentrated superphosphate, also known as 
double, treble, or triple superphosphate (TSP), chemical formula 
Ca(H2PO4)2[middot]H2O; and proprietary formulations of MAP, DAP, 
NSP, and TSP.
    The covered merchandise also includes other fertilizer 
formulations incorporating phosphorous and non-phosphorous plant 
nutrient components, whether chemically-bonded, granulated (e.g., 
when multiple components are incorporated into granules through, 
e.g., a slurry process), or compounded (e.g., when multiple 
components are compacted together under high pressure), including 
nitrogen, phosphate, sulfur (NPS) fertilizers, nitrogen, 
phosphorous, potassium (NPK) fertilizers, nitric phosphate (also 
known as nitrophosphate) fertilizers, ammoniated superphosphate 
fertilizers, and proprietary formulations thereof that may or may 
not include other nonphosphorous plant nutrient components. For 
phosphate fertilizers that contain non-phosphorous plant nutrient 
components, such as nitrogen, potassium, sulfur, zinc, or other non-
phosphorous components, the entire article is covered, including the 
non-phosphorous content, provided that the phosphorous content 
(measured by available diphosphorous pentaoxide, chemical formula 
P2O5) is at least 5% by actual weight.
    Phosphate fertilizers that are otherwise subject to this 
investigation are included when commingled (i.e., mixed or blended) 
with phosphate fertilizers from sources not subject to this 
investigation. Phosphate fertilizers that are otherwise subject to 
this investigation are included when commingled with substances 
other than phosphate fertilizers subject to this investigation 
(e.g., granules containing only non-phosphate fertilizers such as 
potash or urea). Only the subject component of such commingled 
products is covered by the scope of this investigation. The 
following products are specifically excluded from the scope of this 
investigation:
    (1) ABC dry chemical powder preparations for fire extinguishers 
containing MAP or DAP in powdered form;
    (2) industrial or technical grade MAP in white crystalline form 
with available P2O5 content of at least 60% by actual weight;
    (3) industrial or technical grade diammonium phosphate in white 
crystalline form with available P2O5 content of at least 50% by 
actual weight;
    (4) liquid ammonium polyphosphate fertilizers;
    (5) dicalcium phosphate, chemical formula CaHPO4;
    (6) monocalcium phosphate, chemical formula CaH4P2O8;
    (7) trisodium phosphate, chemical formula Na3PO4;
    (8) sodium tripolyphosphate, chemical formula Na5P3O10;
    (9) prepared baking powders containing sodium bicarbonate and 
any form of phosphate;
    (10) animal or vegetable fertilizers not containing phosphate 
fertilizers otherwise covered by the scope of this investigation;
    (11) phosphoric acid, chemical formula H3PO4.
    The Chemical Abstracts Service (CAS) numbers for covered 
phosphate fertilizers include, but are not limited to: 7722-76-1 
(MAP); 7783-28-0 (DAP); and 65996-95-4 (TSP). The covered products 
may also be identified by Nitrogen-Phosphate- Potash composition, 
including but not limited to: NP 11-52-0 (MAP); NP 18-46-0 (DAP); 
and NP 0-46-0 (TSP).
    The covered merchandise is currently classified in the 
Harmonized Tariff Schedule of the United States (HTSUS) at 
subheadings 3103.11.0000; 3103.19.0000; 3105.20.0000; 3105.30.0000; 
3105.40.0010; 3105.40.0050; 3105.51.0000; and 3105.59.0000. 
Phosphate fertilizers subject to this investigation may also enter 
under subheadings 3103.90.0010, 3105.10.0000, 3105.60.0000, 
3105.90.0010, and 3105.90.0050. Although the HTSUS subheadings and 
CAS registry numbers are provided for convenience and customs 
purposes, 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. Use of Facts Otherwise Available and Adverse Inferences
IV. Subsidies Valuation
V. Benchmarks and Interest Rates
VI. Analysis of Programs
VII. Analysis of Comments
    Comment 1: Whether Commerce's Rejection of PhosAgro's Extension 
Request to Submit Case and Rebuttal Briefs Was Unreasonable
    Comment 2: Whether the Mining Rights for Less than Adequate 
Remuneration (LTAR) Program Is Countervailable
    Comment 2a: Whether the Mining Rights for LTAR Program 
Constitutes a Financial Contribution
    Comment 2b: Whether the Mining Rights for LTAR Program Is 
Specific
    Comment 2c: Whether the Mining Rights for LTAR Program Confers a 
Benefit
    Comment 2d: Whether Mining Rights Provided Prior to the Non-
Market Economy ``Cut-off'' Date Should Be Included in the Mining 
Rights for LTAR Calculation
    Comment 2e: Whether Commerce Should Include Freight, Value Added 
Taxes (VAT), and Import Duties in the Mining Rights Benchmark
    Comment 2f: Whether the Calculation Methodology of the Mining 
Rights for LTAR Program Was Appropriate
    Comment 3: Whether the Natural Gas for LTAR Program Is 
Countervailable
    Comment 3a: Whether PJSC Gazprom (Gazprom) Is a Government 
Authority that Provides a Financial Contribution
    Comment 3b: Whether Oil Company Rosneft, Public Joint Stock 
Company

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(Rosneft) Is a Government Authority that Provides a Financial 
Contribution
    Comment 3c: Whether the Saint Petersburg International Commodity 
Exchange (SPIMEX) Is a Government Authority that Provides a 
Financial Contribution
    Comment 3d: Whether the Provision of Natural Gas by Gazprom Is 
Specific
    Comment 3e: Whether the Provision of Natural Gas by SPIMEX Is 
Specific
    Comment 3f: Whether the Provision of Natural Gas for LTAR 
Confers a Benefit
    Comment 3g: Whether Commerce Should Adjust the Natural Gas 
Benchmark to ``Tier One''
    Comment 3h: Whether Commerce Should Adjust the Natural Gas 
Benchmark to ``Tier Two''
    Comment 3i: Whether Commerce Should Change the Data Relied Upon 
in its Natural Gas Benchmark ``Tier Three'' Analysis
    Comment 3j: Whether Commerce Should Adjust the Natural Gas 
Benchmark Data in its ``Tier Three'' Analysis.
    Comment 3k: Whether Commerce Should Use a VAT Inclusive Sales 
Denominator
    Comment 3l: Whether 19 CFR 351.525(b)(6) Applies to EuroChem's 
Natural Gas for LTAR
    Comment 3m: Whether Commerce Should Consider the Relative 
Consumption of Natural Gas in the Production of Subject Merchandise 
for Purposes of Attribution
    Comment 3n: Whether Commerce Should Use EuroChem's 2019 Audited 
Financials for Its Sales Denominators
    Comment 3o: Whether the Delivery Cost of SPIMEX Natural Gas from 
EuroChem-Energo LLC (Energo) to JSC Nevinnomyssky Azot (Nevinka) and 
EuroChem Northwest JSC (EuroChem NW) Should Be Considered in Any 
Natural Gas Subsidy Calculation
    Comment 4: Whether the Tax Incentives for Mining Operations--
Income Tax Deduction for Exploration Expenses Program Is Specific
    Comment 5: Whether the Income Tax Deduction for Research and 
Development (R&D) Expenses Is Specific
    Comment 6: Whether the Regional Support of Industrial 
Development Programs, the Special Investment Contract (SPIC) with 
Perm Krai, and the Preferential Debt Financing of Projects Aimed at 
Introducing the Best Available Technologies Program Are Specific
    Comment 7: Whether Commerce Used the Appropriate Denominator to 
Calculate PhosAgro's Subsidy Rates
VIII. Recommendation

[FR Doc. 2021-03010 Filed 2-12-21; 8:45 am]
BILLING CODE 3510-DS-P