[Federal Register Volume 88, Number 4 (Friday, January 6, 2023)]
[Notices]
[Pages 1042-1044]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-00073]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-907]


Sodium Nitrite From India: Final Affirmative Countervailing Duty 
Determination

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of sodium nitrite from India. The period of investigation is January 1, 
2021, through December 31, 2021.

DATES: Applicable January 6, 2023.

FOR FURTHER INFORMATION CONTACT: Eva Kim, AD/CVD Operations, Office IV, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230; telephone: (202) 482-8283.

[[Page 1043]]


SUPPLEMENTARY INFORMATION:

Background

    On June 21, 2022, Commerce published the Preliminary Determination 
in the Federal Register.\1\ For a complete description of the events 
that followed the Preliminary Determination, see the Issues and 
Decision Memorandum.\2\ 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 https://access.trade.gov. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \1\ See Sodium Nitrite from India: Preliminary Affirmative 
Countervailing Duty Determination and Alignment of Final 
Determination With the Final Antidumping Duty Determination, 87 FR 
36824 (June 21, 2022) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination of the Countervailing Duty Investigation of 
Sodium Nitrite from India,'' dated concurrently with, and hereby 
adopted by, this notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are sodium nitrite from 
India. For a complete description of the scope of this investigation, 
see Appendix I.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs by parties in this investigation, are 
discussed in the Issues and Decision Memorandum. For a list of the 
issues raised by parties, and to which we responded in the Issues and 
Decision Memorandum, see Appendix II of 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 to be 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.\3\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \3\ 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 otherwise available, including adverse inferences, pursuant to 
sections 776(a) and (b) of the Act. For a full discussion of our 
application of facts available (AFA), see the section ``Use of Facts 
Available and Adverse Inferences'' in the accompanying Issues and 
Decision Memorandum.

Verification

    Consistent with section 782(i) of the Act, in October 2022, 
Commerce verified all information reported by Deepak Nitrite Limited 
(Deepak). We used standard verification procedures, including an 
examination of relevant accounting records and original source 
documents provided by the respondent.\4\
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    \4\ See Memorandum, ``Verification of the Questionnaire 
Responses of Deepak Nitrite Limited,'' dated October 19, 2022.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the information at verification 
and comments received from interested parties, we made certain changes 
to the subsidy rate calculations for Deepak. Consequently, Commerce 
also revised the all-others rate. For a discussion of these changes, 
see the Issues and Decision Memorandum.

All-Others Rate

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
calculated an individual estimated countervailable subsidy rate for the 
sole mandatory respondent, Deepak. Section 705(c)(5)(A)(i) of the Act 
states that, for companies not individually investigated, Commerce will 
determine an all-others rate equal to the weighted-average 
countervailable subsidy rates established for exporters and/or 
producers individually investigated, excluding any zero and de minimis 
countervailable subsidy rates, and any rates determined entirely under 
section 776 of the Act.
    In this investigation, Commerce calculated a net countervailable 
subsidy rate for Deepak, the only individually examined exporter/
producer in this investigation. Because the only subsidy rate 
calculated in this investigation is not zero, de minimis, or based 
entirely on facts otherwise available, the net countervailable subsidy 
rate calculated for Deepak is the subsidy rate assigned to all other 
producers and exporters, pursuant to section 705(c)(5)(1)(A)(i) of the 
Act.

Final Determination

    Commerce determines that the following estimated net 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
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Deepak Nitrite Limited..................................            2.40
All Others..............................................            2.40
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Disclosure

    Commerce intends to disclose to interested parties its calculations 
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 publication of this notice 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 from India that were entered, or withdrawn from 
warehouse, for consumption, on or after June 21, 2022, which is the 
date of publication of the Preliminary Determination in the Federal 
Register. In accordance with section 703(d) of the Act, we instructed 
CBP to discontinue the suspension of liquidation of all entries of 
subject merchandise entered or withdrawn from warehouse, on or after 
October 19, 2022, but to continue the suspension of liquidation of all 
entries of subject merchandise between June 21, 2022, and October 18, 
2022.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order and require a cash deposit of estimated countervailing duties for 
such 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 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 sodium 
nitrite from India. As Commerce's final determination is affirmative, 
in accordance with section

[[Page 1044]]

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, by reason of imports of sodium nitrite 
from India. 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 Enforcement and Compliance. If 
the ITC determines that material injury or threat of material injury 
does not exist, this proceeding will be terminated, and all cash 
deposits 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 that are entered, or withdrawn 
from warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as discussed above in the ``Continuation of 
Suspension of Liquidation'' section.

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 the 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: December 30, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The product covered by this investigation is sodium nitrite in 
any form, at any purity level. In addition, the sodium nitrite 
covered by this investigation may or may not contain an anticaking 
agent. Examples of names commonly used to reference sodium nitrite 
are nitrous acid, sodium salt, anti-rust, diazotizing salts, 
erinitrit, and filmerine. Sodium nitrite's chemical composition is 
NaNO2, and it is generally classified under subheading 2834.10.1000 
of the Harmonized Tariff Schedule of the United States (HTSUS). The 
American Chemical Society Chemical Abstract Service (CAS) has 
assigned the name ``sodium nitrite'' to sodium nitrite. The CAS 
registry number is 7632-00-0. For purposes of the scope of this 
investigation, the narrative description is dispositive, not the 
tariff heading, CAS registry number or CAS name, which are provided 
for convenience and customs purposes.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Subsidies Valuation
IV. Use of Facts Available and Adverse Inferences
V. Analysis of Programs
VI. Analysis of Comments
    Comment 1: Whether Provision of Land for Less Than Adequate 
Remuneration (LTAR) Is Countervailable
    Comment 2: Whether Commerce Correctly Calculated the Benefits 
for Provision of Land LTAR
    Comment 3: Whether the Selection of Land LTAR Benchmark Is 
Appropriate
    Comment 4: Whether the Provision of Coal for LTAR Is 
Countervailable
    Comment 5: Whether Commerce Correctly Calculated the Benefit for 
Provision of Coal LTAR
    Comment 6: Whether Commerce Correctly Calculated the Benchmark 
for Provision of Coal LTAR
    Comment 7: Whether Commerce Should Find that Section 35(1)(iv) 
of the Income Tax Act (ITA), 1961 Is a Countervailable Program
    Comment 8: Whether Commerce Correctly Calculated the Benefits 
for Section 35(1)(iv) of the Income Tax Act, 1961
    Comment 9: Whether Commerce Should Find that Deepak Failed To 
Report Benefits Under Other Subsections for Section 35 of the ITA
    Comment 10: Whether Commerce Should Find Should Find that Deepak 
and Deepak Fertilizers and Petrochemicals Corporation (DFPCL) are 
Cross-Owned Affiliates
    Comment 11: Whether Commerce Should Find That Other Indian 
Producers Did Not Cooperate, and Assign a Rate Based on Adverse 
Inferences (AFA) to These Other Exporters
    Comment 12: Whether Commerce Should Calculate Benefits for 
Status Holder Incentive Scheme (SHIS)
    Comment 13: Whether Commerce Should Correct the Duty Drawback 
(DDB) Calculation
    Comment 14: Whether Commerce Should Calculate Benefits Under the 
Merchandise Export from India Scheme (MEIS)
    Comment 15: Whether Commerce Chose the Appropriate Benchmark for 
the Gujarat Industrial Development Corporation (GIDC) Preferential 
Water Rates Program
    Comment 16: Whether Commerce Correctly Calculated a Benchmark 
Representing the Delivered Price of Natural Gas
VII. Recommendation

[FR Doc. 2023-00073 Filed 1-5-23; 8:45 am]
BILLING CODE 3510-DS-P