[Federal Register Volume 88, Number 66 (Thursday, April 6, 2023)]
[Notices]
[Pages 20475-20478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-07246]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-123]


Certain Corrosion Inhibitors From the People's Republic of China: 
Preliminary Results of Countervailing Duty Administrative Review and 
Rescission of Review, in Part; 2020-2021

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of certain corrosion inhibitors (corrosion 
inhibitors) from the People's Republic of China (China). The period of 
review is July 13, 2020, through December 31, 2021. In addition, we are 
rescinding the review with respect to 27 companies. Interested parties 
are invited to comment on these preliminary results.

DATES: Applicable April 6, 2023.

FOR FURTHER INFORMATION CONTACT: Brontee George or Theodore Pearson, 
AD/CVD Operations, Office I, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-4656 or (202) 
482-2631, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On March 19, 2021, Commerce published in the Federal Register the 
countervailing duty (CVD) order on certain corrosion inhibitors from 
China.\1\ On May 13, 2022, Commerce published the notice of initiation 
of an administrative review of the Order for the period July 13, 2020, 
through December 31, 2021.\2\ On July 19, 2022,
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    \1\ See Certain Corrosion Inhibitors from the People's Republic 
of China: Antidumping Duty and Countervailing Duty Orders, 86 FR 
14869 (March 19, 2021) (Order).
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 87 FR 29280 (May 13, 2022).

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[[Page 20476]]

Commerce selected Anhui Trust Chem Co., Ltd. and Nantong Botao Chemical 
Co., Ltd. as mandatory respondents in this administrative review.\3\ On 
October 24, 2022, Commerce exercised its discretion to extend the 
preliminary results of this administrative review by 120 days, until 
March 31, 2023.\4\
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    \3\ See Memorandum, ``Respondent Selection,'' dated July 19, 
2022.
    \4\ See Memorandum, ``Extension of Deadline for Preliminary 
Results of Countervailing Duty Administrative Review; 2020-2021,'' 
dated October 24, 2022.
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    For a complete description of the events that followed the 
initiation of this administrative review, see the Preliminary Decision 
Memorandum.\5\ A list of topics discussed in the Preliminary Decision 
Memorandum is included as Appendix I 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 http://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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    \5\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of Countervailing Duty Administrative Review and Rescission 
in Part; 2020--2021: Certain Corrosion Inhibitors from the People's 
Republic of China,'' dated concurrently with, and hereby adopted by, 
this notice (Preliminary Decision Memorandum).
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Scope of the Order

    The product covered by the Order are corrosion inhibitors from 
China. For a complete description of the scope, see the Preliminary 
Decision Memorandum.

Methodology

    Commerce is conducting this administrative review in accordance 
with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the 
Act). For each of the subsidy programs found countervailable, Commerce 
preliminarily finds that there is a subsidy (i.e., a government-
provided financial contribution that gives rise to a benefit to the 
recipient, and that the subsidy is specific).\6\
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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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    In making these findings, Commerce relied, in part, on facts 
available and, because it finds that one or more respondents, including 
the Government of China, did not act to the best of their ability to 
respond to Commerce's requests for information, it drew an adverse 
inference where appropriate in selecting from among the facts otherwise 
available.\7\ For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Decision 
Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.
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Rescission of Administrative Review, in Part

    Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an 
administrative review, in whole or in part, if the parties that 
requested a review withdraw the request within 90 days of the date of 
publication of the notice of initiation. Commerce received a timely-
filed withdrawal of review request from Wincom Incorporated (the 
petitioner) with respect to 29 companies, pursuant to 19 CFR 
351.213(d)(1). However, two of the companies for which the petitioner 
withdrew its review request are subject to review requests that were 
not withdrawn. For the other 27 companies, because the withdrawal 
request was timely filed, and no other parties requested a review of 
these companies, in accordance with 19 CFR 351.213(d)(1), Commerce is 
rescinding this administrative review with respect to these 27 
companies. For a list of companies, see Appendix II.

Preliminary Results of Review

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

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                                                       Subsidy rate--2020 (percent   Subsidy rate--2021 (percent
                       Company                                 ad valorem)                   ad valorem)
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Anhui Trust Chem Co., Ltd \8\.......................                        140.61                         51.17
Nantong Botao Chemical Co., Ltd \9\.................                         52.12                         10.77
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                     Review-Specific Average Rate Applicable to the Following Companies \10\
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Gold Chemical Limited...............................                         83.41                         33.89
Jiangyin Delian Chemical Co., Ltd...................                         83.41                         33.89
Nantong Kanghua Chemical Co., Ltd...................                         83.41                         33.89
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Preliminary Rate for Non-Selected Companies Under Review

    There are three companies for which a review was requested and not 
rescinded, and which were not selected as mandatory respondents or 
found to be cross-owned with a mandatory respondent. The statute and 
Commerce's regulations do not directly address the establishment of 
rates to be applied to companies not selected for individual 
examination where Commerce limits its examination in an administrative 
review pursuant to section 777A(e)(2) of the Act. However, Commerce 
normally determines the rates for non-selected companies in reviews in 
a manner that is consistent with section 705(c)(5) of the Act, which 
provides the basis for calculating the all-others rate in an 
investigation.
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    \8\ As discussed in the Preliminary Decision Memorandum, 
Commerce preliminarily finds the following companies to be cross-
owned with ATC: Nanjing Trust Chem Co., Ltd. and Jiangsu Trust Chem 
Co., Ltd.
    \9\ As discussed in the Preliminary Decision Memorandum, 
Commerce preliminarily finds the following companies to be cross-
owned with Botao: Rugao Connect Chemical Co., Ltd.; Rugao Jinling 
Chemical Co., Ltd.; and Nantong Yutu Group Co., Ltd.
    \10\ This rate is based on the rate for the respondent that was 
selected for individual review, excluding rates that are zero, de 
minimis, or based entirely on facts available. See section 
735(c)(5)(A) of the Act.
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    Section 705(c)(5)(A)(i) of the Act instructs Commerce, as a general 
rule, to calculate an all-others rate equal to the weighted average of 
the countervailable subsidy rates established for exporters and/or 
producers individually examined, excluding any rates that are zero, de 
minimis, or based entirely on facts available. In this review, the 
preliminary rates calculated for Anhui Trust Chem Co., Ltd. (ATC) and 
Nantong Botao Chemical Co., Ltd. (Botao) were above de minimis and not 
based entirely on facts available. Therefore, we are applying to the 
non-selected companies the average of the net subsidy rates calculated 
for ATC and

[[Page 20477]]

Botao, which we calculated using the publicly-ranged sales data 
submitted by ATC and Botao.\11\ This methodology to establish the rate 
for the non-selected companies uses section 705(c)(5)(A) of the Act, 
which governs the calculation of the ``all-others'' rate in an 
investigation, as guidance. For further information on the calculation 
of the non-selected respondent rate, refer to the section in the 
Preliminary Decision Memorandum entitled ``Non-Selected Companies Under 
Review.''
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    \11\ 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).
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Cash Deposit Requirements

    Pursuant to section 751(a)(2)(C) of the Act, Commerce intends, upon 
publication of the final results, to instruct CBP to collect cash 
deposits of estimated countervailing duties in the amounts indicated 
above for 2021 for each of the respondents listed above on shipments of 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of the final results of 
this administrative review. If the rate calculated in the final results 
is zero or de minimis, no cash deposit will be required on shipments of 
the subject merchandise entered or withdrawn from warehouse, for 
consumption on or after the date of publication of the final results of 
this review.
    For all non-reviewed firms, CBP will continue to collect cash 
deposits of estimated countervailing duties at the all-others rate or 
the most recent company-specific rate applicable to the company, as 
appropriate. These cash deposit requirements, when imposed, shall 
remain in effect until further notice.

Assessment Rates

    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily 
assigned subsidy rates in the amounts shown above for the producers/
exporters shown above. Consistent with section 751(a)(1) of the Act and 
19 CFR 351.212(b)(2), upon issuance of the final results, Commerce 
shall determine, and CBP shall assess, countervailing duties on all 
appropriate entries covered by this review. We intend to issue 
assessment instructions to CBP no earlier than 35 days after the date 
of publication of the final results of this review in the Federal 
Register. If a timely summons is filed at the U.S. Court of 
International Trade, the assessment instructions will direct CBP not to 
liquidate relevant entries until the time for parties to file a request 
for a statutory injunction has expired (i.e., within 90 days of 
publication).
    For the companies for which this review is rescinded with these 
preliminary results, we will instruct CBP to assess countervailing 
duties on all appropriate entries at a rate equal to the cash deposit 
of estimated countervailing duties required at the time of entry, or 
withdrawal from warehouse, for consumption, during the period July 13, 
2020, through December 31, 2021, in accordance with 19 CFR 
351.212(c)(l)(i).

Disclosure and Public Comment

    We will disclose to parties in this review, the calculations 
performed for these preliminary results within five days after the date 
of publication of this notice.\12\ Interested parties may submit case 
briefs no later than 30 days after the date of publication of these 
preliminary results of review.\13\ Rebuttals to case briefs may be 
filed no later than seven days after the case briefs are filed, and all 
rebuttal comments must be limited to comments raised in the case 
briefs.\14\ Note that Commerce has temporarily modified certain of its 
requirements for serving documents containing business proprietary 
information until further notice.\15\ Pursuant to 19 CFR 351.309(c)(2) 
and (d)(2), parties who submit case briefs or rebuttal briefs in this 
review are encouraged to submit with each argument: (1) a statement of 
the issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \12\ See 19 CFR 351.224(b).
    \13\ See 19 CFR 351.309(c)(1)(ii).
    \14\ See 19 CFR 351.309(d).
    \15\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18, 
2020); and 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, filed 
electronically using ACCESS. An electronically-filed request must be 
received successfully, and in its entirety, by ACCESS by 5:00 p.m. 
Eastern Time, within 30 days after the date of publication of this 
notice. Hearing 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, parties will be notified of the date and 
time for the hearing to be determined.
    Unless extended, we intend to issue the final results of this 
administrative review, which will include the results of our analysis 
of the issues raised in the case briefs, within 120 days of publication 
of these preliminary results in the Federal Register, pursuant to 
section 751(a)(3)(A) of the Act and 19 CFR 351.213(h).

Notification to Interested Parties

    These preliminary results and notice are issued and published in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 
351.213 and 351.221(b)(4).

    Dated: March 30, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Non-Selected Companies Under Review
V. Partial Rescission of Administrative Review
VI. Diversification of China's Economy
VII. Use of Facts Otherwise Available and Application of Adverse 
Inferences
VIII. Subsidies Valuation
IX. Interest Rate, Discount Rate, Input, Electricity, and Land 
Benchmarks
X. Analysis of Programs
XI. Recommendation

Appendix II

Companies Rescinded From Review

1. Dandee Hong Kong Holdings Ltd
2. Alvarez Schaer S.A.
3. Bollore Logistics Le Havre
4. CAC Shanghai Chemical Co., Ltd.
5. Dalsem Greenhouse Technology B.V.
6. Gooyer International Co., Ltd. (Hk)
7. Haruno Sangyo Kaisha Ltd.
8. Jiangsu Bohan Industry Trade Co., Ltd.
9. Jiangsu Yangnong Chemical Group Co., Ltd.
10. Jiangyin Gold Fuda Chemical Co., Ltd.
11. Johoku Chemical Co., Ltd.
12. K. Uttamlal Exports Private Limited
13. Nanjing Hengrun Hogsu Import & Export Company
14. Nanjing Innochem Co., Ltd.

[[Page 20478]]

15. Nanjing Singchem Co., Ltd.
16. Nantong Bestime Chemical Co., Ltd.
17. Sagar Speciality Chemicals Pvt., Ltd.
18. Sinochem Pharmaceutical Co., Ltd.
19. Solenis Especialidades Quimicas Ltda
20. Techwell Technology Holding Limited
21. Tianjin Jinbin Iternational Trade
22. Vcare Medicines
23. Wuxi Base International Trade Co., Ltd.
24. Wuxi Connect Chemicals Co., Ltd.
25. Xingji Xi Chen Re Neng Co., Ltd.
26. Yasho Industries Pvt. Ltd.
27. Zaozhuang Kerui Chemicals Co., Ltd.

[FR Doc. 2023-07246 Filed 4-5-23; 8:45 am]
BILLING CODE 3510-DS-P