[Federal Register Volume 86, Number 230 (Friday, December 3, 2021)]
[Notices]
[Pages 68635-68637]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26313]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-821-832]


Urea Ammonium Nitrate Solutions From the Russian Federation: 
Preliminary Affirmative Countervailing Duty Determination and Alignment 
of Final Determination With the Final Antidumping Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of urea ammonium nitrate solutions (UAN) from the Russian 
Federation (Russia) for the period of investigation (POI) January 1, 
2020, through December 31, 2020. Interested parties are invited to 
comment on this preliminary determination.

DATES: Applicable December 3, 2021.

FOR FURTHER INFORMATION CONTACT: Kristen Johnson (Acron) and John 
Hoffner and Laura Griffith (the EuroChem Companies \1\), AD/CVD 
Operations, Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4793, (202) 482-3315, 
and (202) 482-6430, respectively.
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    \1\ For purposes of this investigation, the EuroChem Companies 
are Mineral and Chemical Company EuroChem, Joint Stock Company (MCC 
EuroChem), Joint Stock Company Nevinnomyssky Azot (Nevinka), and 
Azot, Joint Stock Company (NAK Azot).

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on July 26, 
2021.\2\ On August 24, 2021, Commerce postponed the preliminary 
determination of this investigation to November 29, 2021.\3\ For a 
complete description of events that followed the initiation of this 
investigation, see the Preliminary Decision Memorandum.\4\ A list of 
topics discussed in the Preliminary Decision Memorandum is included as 
Appendix II to this notice. The Preliminary 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 
https://access.trade.gov. In addition, a complete version of the 
Preliminary Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \2\ See Urea Ammonium Nitrate Solutions from the Russian 
Federation and the Republic of Trinidad and Tobago: Initiation of 
Countervailing Duty Investigations, 86 FR 40004 (July 26, 2021) 
(Initiation Notice).
    \3\ See Urea Ammonium Nitrate Solutions from the Russian 
Federation and the Republic of Trinidad and Tobago: Postponement of 
Preliminary Determinations in the Countervailing Duty 
Investigations, 86 FR 47296 (August 24, 2021).
    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Countervailing Duty Investigation 
of Urea Ammonium Nitrate Solutions from the Russian Federation,'' 
dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Scope of the Investigation

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

Scope Comments

    In accordance with the preamble to Commerce's regulations,\5\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e., scope).\6\ No interested 
party commented on the scope of the investigation as it appeared in the 
Initiation Notice.
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    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \6\ See Initiation Notice, 86 FR at 40005.
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Methodology

    Commerce is conducting this investigation in accordance with 
section

[[Page 68636]]

701 the Act. For each of the subsidy programs found countervailable, 
Commerce preliminarily 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.\7\ For a full 
description of the methodology underlying our preliminary conclusions, 
see the Preliminary Decision Memorandum.
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    \7\ 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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    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, because it finds that the Government of Russia 
did not act to the best of its ability to respond to Commerce's 
requests for information, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\8\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences,'' in the Preliminary Decision Memorandum.
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    \8\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final determination in this countervailing duty (CVD) 
investigation with the final determination in the companion antidumping 
duty (AD) investigation of UAN from Russia based on a request made by 
the petitioner.\9\ Consequently, the final CVD determination will be 
issued on the same date as the final AD determination, which is 
currently scheduled to be issued no later than April 11, 2022, unless 
postponed.
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    \9\ See Petitioner's Letter, ``Urea Ammonium Nitrate Solutions 
from the Russian Federation: Petitioner's Request to Align Final 
Countervailing Duty Determination with the Companion Antidumping 
Duty Final Determination,'' dated November 22, 2021. The petitioner 
is CF Industries Nitrogen, LLC and its subsidiaries, Terra Nitrogen, 
Limited Partnership and Terra International (Oklahoma) LLC.
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All-Others Rate

    Sections 703(d)(1)(A)(i) and 705(c)(5)(A) of the Act provide that 
in the preliminary determination, Commerce shall determine an estimated 
all-others rate for companies not individually examined. Pursuant to 
section 705(c)(5)(A)(i) of the Act, this rate shall normally 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.
    Commerce calculated individual estimated countervailable subsidy 
rates for Public Joint Stock Company Acron and the EuroChem Companies 
that are not zero, de minimis, or based entirely on facts otherwise 
available. Commerce calculated 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 values for 
the merchandise under consideration.\10\
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    \10\ With two respondents under examination, Commerce normally 
calculates (A) a weighted-average of the estimated subsidy rates 
calculated for the examined respondents; (B) a simple average of the 
estimated subsidy rates calculated for the examined respondents; and 
(C) a weighted-average of the estimated subsidy rates calculated for 
the examined respondents using each company's publicly-ranged U.S. 
sale quantities for the merchandise under consideration. Commerce 
then compares (B) and (C) to (A) and selects the rate closest to (A) 
as the most appropriate rate for all other producers and exporters. 
See, e.g., Ball Bearings and Parts Thereof from France, Germany, 
Italy, Japan, and the United Kingdom: Final Results of Antidumping 
Duty Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010). As complete publicly ranged sales data was 
available, Commerce based the all-others rate on the publicly ranged 
sales data of the mandatory respondents. For a complete analysis of 
the data, see Memorandum, ``Countervailing Duty Investigation of 
Urea Ammonium Nitrate Solutions from the Russian Federation: All-
Other Rate for Preliminary Determination,'' dated concurrently with, 
and hereby adopted by, this notice.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:
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    \11\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Joint Stock Company Nevinnomyssky Azot (Nevinka): Mineral and 
Chemical Company EuroChem, Joint Stock Company (MCC EuroChem) and 
Azot, Joint Stock Company (NAK Azot).
    \12\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Public Joint Stock Company Acron: Joint Stock Company Acron Group 
and Acron Switzerland AG.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            ad valorem
                                                             (percent)
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The EuroChem Companies \11\.............................            9.84
Public Joint Stock Company Acron \12\...................            9.66
All Others..............................................            9.72
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Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct 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 the date of the publication of 
this notice in the Federal Register. Further, pursuant to 19 CFR 
351.205(d), Commerce will instruct CBP to require a cash deposit equal 
to the rates indicated above.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.244(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination. 
Normally, Commerce verifies information using standard procedures, 
including an on-site examination of original accounting, financial, and 
sales documentation. However, due to current travel restrictions in 
response to the global COVID-19 pandemic, Commerce is unable to conduct 
on-site verification in this investigation. Accordingly, we intend to 
verify the information relied upon in making the final determination 
through alternative means in lieu of an on-site verification.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. Interested parties 
will be notified of the timeline for the submission of case briefs and 
written comments at a later date. Rebuttal briefs, limited to issues 
raised in case briefs, may be submitted no later than seven days after 
the deadline date for case briefs.\13\ Note that Commerce has 
temporarily modified certain of its requirements for serving documents 
containing business proprietary information, until further notice.\14\ 
Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case 
briefs or rebuttal briefs in this investigation are encouraged to 
submit with each argument: (1) A statement of the issue;

[[Page 68637]]

(2) a brief summary of the argument; and (3) a table of authorities.
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    \13\ See 19 CFR 351.309; see also Temporary Rule Modifying AD/
CVD Service Requirements Due to COVID-19, 85 FR 17006, 17007 (March 
26, 2020) (Temporary Rule); and 19 CFR 351.303 (for general filing 
requirements).
    \14\ See Temporary Rule, 85 FR at 17006; see also Temporary Rule 
Modifying AD/CVD Service Requirements Due to COVID-19; Extension of 
Effective Period, 85 FR 41363 (July 10, 2020).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at a time and date to be 
determined. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If 
Commerce's final determination is affirmative, the ITC will make its 
final injury determination before the later of 120 days after the date 
of this preliminary determination or 45 days after the final 
determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).

    Dated: November 29, 2021.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is all mixtures of 
urea and ammonium nitrate in aqueous or ammonia solution, regardless 
of nitrogen concentration by weight, and regardless of the presence 
of additives, such as corrosion inhibiters and soluble micro or 
macronutrients (UAN).
    Subject merchandise includes merchandise matching the above 
description that has been processed in a third country, including by 
commingling, diluting, adding or removing additives, or performing 
any other processing that would not otherwise remove the merchandise 
from the scope of the investigation if performed in the subject 
country.
    The scope also includes UAN that is commingled with UAN from 
sources not subject to this investigation. Only the subject 
component of such commingled products is covered by the scope of 
this investigation.
    The covered merchandise is currently classified in the 
Harmonized Tariff Schedule of the United States (HTSUS) at 
subheading 3102.80.0000. Although the HTSUS subheading is provided 
for convenience and customs purposes, the written description of the 
scope is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation
V. Benchmarks and Interest Rates
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Analysis of Programs
VIII. Recommendation

[FR Doc. 2021-26313 Filed 12-2-21; 8:45 am]
BILLING CODE 3510-DS-P