[Federal Register Volume 86, Number 29 (Tuesday, February 16, 2021)]
[Notices]
[Pages 9482-9484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-03011]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-714-001]


Phosphate Fertilizers From the Kingdom of Morocco: 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 Kingdom of Morocco (Morocco).

DATES: Applicable February 16, 2021.

FOR FURTHER INFORMATION CONTACT: Robert Palmer or Janae Martin, 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) 482-9068 or (202) 
482-0238, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On November 30, 2020, Commerce published its Preliminary 
Determination.\1\ On December 29, 2020, Commerce published its Amended 
Preliminary Determination.\2\ On January 6, 2021, Commerce released its 
Post-Preliminary Determination.\3\ For a complete description of the 
events that followed the Preliminary Determination, see the Issues and 
Decision Memorandum.\4\ 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. 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 Kingdom of Morocco: 
Preliminary Affirmative Countervailing Duty Determination, 85 FR 
76522 (November 30, 2020) (Preliminary Determination), and 
accompanying Preliminary Decision Memorandum (PDM).
    \2\ See Phosphate Fertilizers from the Kingdom of Morocco: 
Amended Preliminary Determination of Countervailing Duty 
Investigation, 85 FR 85585 (December 29, 2020) (Amended Preliminary 
Determination), and accompanying PDM.
    \3\ See Memorandum, ``Post-Preliminary Determination of 
Countervailing Duty Investigation: Phosphate Fertilizers from the 
Kingdom of Morocco,'' dated January 6, 2020 (Post-Preliminary 
Determination).
    \4\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination of the Countervailing Duty 
Investigation of Phosphate Fertilizers from the Kingdom of 
Morocco,'' 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 Morocco. 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.\5\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \5\ See Commerce's Letters, ``Supplemental Questionnaire in Lieu 
of On-Site Verification,'' dated December 17, 2020; see also OCP's 
Letter, ``Response to Questionnaire in Lieu of On-Site 
Verification,'' dated December 30, 2020; and the GOM's Letter, ``In 
Lieu of On-Site Verification Questionnaire Response of the 
Government of the Kingdom of Morocco,'' dated December 29, 2020.
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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

[[Page 9483]]

the information relied upon in making this final determination, in 
accordance with section 782(i) of the Act.\6\
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    \6\ Commerce has found the following companies to be cross-owned 
with OCP S.A.: Jorf Fertilizers Company I, Jorf Fertilizers Company 
II, Jorf Fertilizers Company III, Jorf Fertilizers Company IV, Jorf 
Fertilizers Company V, and Maroc Phosphore.
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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 OCP S.A.'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:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            ad valorem
                                                             (percent)
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OCP S.A.\6\.............................................           19.97
All Others..............................................           19.97
------------------------------------------------------------------------

All-Others Rate

    We continue to calculate the all-others rate using the estimated 
weighted-average subsidy rate calculated for OCP S.A., the only 
individually examined exporter/producer in this investigation, pursuant 
to section 705(c)(5)(A)(i) of the Act.

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 (CBP) 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.
    As a result of the Amended Preliminary Determination, the amended 
rates for OCP and all others resulted in decreased cash deposits, which 
were applied retroactively to November 30, 2020, the date of 
publication of the Preliminary Determination.
    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 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 Morocco. 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)2CaSO4; concentrated superphosphate, also known as double, 
treble, or triple superphosphate (TSP), chemical formula 
Ca(H2PO4)2H2O; 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:

[[Page 9484]]

    (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. Subsidies Valuation
IV. Benchmarks and Interest Rates
V. Analysis of Programs
VI. Analysis of Comments
    General Issues
    Comment 1: Whether the Petition Demonstrated Sufficient Industry 
Support
    Comment 2: Whether Commerce's ``Other Assistance'' Question Is 
Contrary to Law
    Mining Rights for Less Than Adequate Remuneration (LTAR)
    Comment 3: Whether Commerce Should Revise the Phosphate Rock 
Benchmark
    Comment 4: Whether to Include or Exclude HQ, Support, Debt, and 
Other Costs as Costs of Producing Phosphate Rock
    Comment 5: Whether to Include a Profit Component
    Comment 6: Whether Freight Costs Are Double Counted in the 
Mining Costs
    Comment 7: The Appropriate Quantity for the Mining Rights for 
LTAR Benefit Calculation
    Comment 8: The Appropriate Analysis for the Provision of Mining 
Rights for LTAR
    Creditworthiness
    Comment 9: Whether Commerce Correctly Analyzed OCP S.A. (OCP)'s 
Financial Ratios
    Comment 10: Whether OCP Is Uncreditworthy in 2018
    Comment 11: Whether Commerce Should Consider OCP's Long-Term 
Loans in the Creditworthiness Analysis
    Comment 12: Whether Commerce Misinterpreted OCP's Credit Ratings
    Authority Determinations
    Comment 13: Whether BCP \7\ Is an Authority and Provides a 
Financial Contribution
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    \7\ Banque Centrale Populaire (BCP).
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    Comment 14: Whether Al Mada and AWB \8\ Are Authorities and 
Provide a Financial Contribution
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    \8\ Attijariwafa Bank Group (AWB).
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    OCP 2016 and 2018 Bond Issuance
    Comment 15: Whether OCP's 2016 Bond Issue Conferred a Benefit
    Comment 16: Whether OCP's Bond Issuance Is Specific
    Comment 17: Whether Commerce Should Revise the Uncreditworthy 
Benchmark Interest Rate
    Loans
    Comment 18: Whether Direct Loans From AWB, BCP, and CAM \9\ Are 
Countervailable
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    \9\ Credit Agricole du Maroc (CAM).
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    Comment 19: Whether the Provision of Loan Guarantees Is 
Countervailable
    Tax Programs
    Comment 20: Whether Commerce Overstated Taxable Income for the 
Tax Incentives for Export Operations Program
    Comment 21: Whether Commerce Should Adjust OCP's Cash Deposit 
Rate
    Comment 22: Whether the Reductions in Tax Fines and Penalties Is 
Specific
    Value-Added Tax (VAT)
    Comment 23: Whether the MAD \10\ 20.5 Billion VAT Refund Is 
Countervailable
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    \10\ Morocco dirhams (MAD).
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    Comment 24: Whether VAT Exemptions for Capital Goods, Machinery 
and Equipment Are Countervailable
    Other Subsidies
    Comment 25: Whether the Provision of Phosphogypsum Waste 
Disposal Is Countervailable
    Comment 26: Whether the Provision of Phosphogypsum Waste 
Disposal Was Properly Initiated
    Comment 27: Whether the Provision of Rail Service for LTAR Is 
Specific
VII. Recommendation

[FR Doc. 2021-03011 Filed 2-12-21; 8:45 am]
BILLING CODE 3510-DS-P