[Federal Register Volume 89, Number 65 (Wednesday, April 3, 2024)]
[Notices]
[Pages 23001-23003]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-07071]


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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; 2022

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily finds 
that countervailable subsidies were provided to producers and exporters 
of corrosion inhibitors from the People's Republic of China (China), 
during the period of review (POR) from January 1, 2022, through 
December 31, 2022. In addition, Commerce is rescinding the review, in 
part, with respect to 16 companies. Interested parties are invited to 
comment on these preliminary results.

DATES: Applicable April 3, 2024.

FOR FURTHER INFORMATION CONTACT: Ted Pearson or Suresh Maniam, AD/CVD 
Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-2631 and (202) 482-1603, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On March 19, 2021, Commerce published in the Federal Register the 
countervailing duty order on corrosion inhibitors from China.\1\ On May 
9, 2023, Commerce published in the Federal Register the notice of 
initiation of an administrative review of the Order.\2\ On June 23, 
2023, Commerce selected Anhui Trust Chem Co., Ltd. (ATC) and Nantong 
Botao Chemical Co., Ltd. (Botao) for individual examination as the 
mandatory respondents in this administrative review.\3\ On October 30, 
2023, Commerce extended the deadline for the preliminary results of 
review until March 28, 2024.\4\
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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, 88 FR 29881 (May 9, 2023).
    \3\ See Memorandum, ``Respondent Selection,'' dated June 23, 
2023.
    \4\ See Memorandum, ``Extension of Deadline for Preliminary 
Results of Countervailing Duty Administrative Review,'' dated 
October 30, 2023.
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    For a complete description of the events that followed the 
initiation of this 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 Recission 
of Review in Part; 2022: 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 products covered by the Order are corrosion inhibitors. For a 
complete description of the scope of the Order, see the Preliminary 
Decision Memorandum.\6\
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    \6\ Id.
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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 subsidy program found countervailable, we preliminarily 
find 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).\7\ For a full description of the methodology 
underlying our conclusions, including our reliance, in part, on adverse 
facts available pursuant to sections 776(a) and (b) of the Act, 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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[[Page 23002]]

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 timely-filed 
withdrawal requests with respect to 16 companies, pursuant to 19 CFR 
351.213(d)(1).\8\ Because the withdrawal requests were 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 
review of the Order with respect to these 16 companies. For a complete 
list of companies, see Appendix II to this notice.
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    \8\ See Preliminary Decision Memorandum at ``Partial Rescission 
of Administrative Review.''
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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.
    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 ATC and 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 Botao, which we calculated using the publicly-
ranged sales data submitted by ATC and Botao.\9\ 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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    \9\ 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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Preliminary Results of Review

    Commerce preliminarily determines that the following net 
countervailable subsidy rates exist for the period January 1, 2022, 
through December 31, 2022:
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    \10\ 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.
    \11\ 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.
    \12\ Formerly known as Nantong Kanghua Chemical Co., Ltd. See 
Certain Corrosion Inhibitors from the People's Republic of China: 
Notice of Final Results of Antidumping Duty Changed Circumstances 
Review, 88 FR 1357 (January 10, 2023).

------------------------------------------------------------------------
                                                               Subsidy
                                                                 rate
                          Company                              (percent
                                                             ad valorem)
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Anhui Trust Chem Co., Ltd.\10\.............................        19.64
Nantong Botao Chemical Co., Ltd.\11\.......................        17.02
Gold Chemical Limited......................................        18.90
Jiangyin Delian Chemical Co., Ltd..........................        18.90
Kanghua Chemical Co., Ltd.\12\.............................        18.90
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Disclosure and Public Comment

    We intend to disclose the calculations performed for these 
preliminary results to interested parties within five days after the 
date of publication of this notice.\13\ Pursuant to 19 CFR 351.309(c), 
interested parties may submit case briefs to Commerce no later than 30 
days after the date of publication of these preliminary results of 
review.\14\ Rebuttal briefs, limited to issues raised in the case 
briefs, may be filed not later than five days after the date for filing 
case briefs.\15\ Interested parties who submit case briefs or rebuttal 
briefs in this proceeding must submit: (1) a table of contents listing 
each issue; and (2) a table of authorities.\16\
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    \13\ See 19 CFR 351.224(b).
    \14\ See 19 CFR 351.309(c)(1)(ii).
    \15\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service, and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 
2023) (APO and Service Final Rule).
    \16\ See 19 351.309(c)(2) and (d)(2).
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    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their brief that should be limited to five pages 
total, including footnotes. In this review, we instead request that 
interested parties provide at the beginning of their briefs a public, 
executive summary for each issue raised in their briefs.\17\ Further, 
we request that interested parties limit their executive summary of 
each issue to no more than 450 words, not including citations. We 
intend to use the executive summaries as the basis of the comment 
summaries included in the issues and decision memorandum that will 
accompany the final results in this administrative review. We request 
that interested parties include footnotes for relevant citations in the 
executive summary of each issue. Note that Commerce has amended certain 
of its requirements pertaining to the service of documents in 19 CFR 
351.303(f).\18\
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    \17\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \18\ See APO and Service Final Rule.
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, filed electronically via 
ACCESS. Requests should contain: (1) the party's name, address, and 
telephone number; (2) the number of participants; and (3) a list of 
issues to be discussed. Issues raised in the hearing will be limited to 
those raised in the respective case briefs. An electronically filed 
hearing request must be received successfully in its entirety by 
Commerce's electronic records system, ACCESS, by 5 p.m. Eastern Time 
within 30 days after the date of publication of this notice.
    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)(1).

[[Page 23003]]

Assessment Rates

    In accordance with section 751(a)(2)(C) of the Act and 19 CFR 
351.221(b)(4)(i), we preliminarily determined subsidy rates in the 
amounts shown above for the producers/exporters shown above. Upon 
completion of the administrative review, consistent with section 
751(a)(1) of the Act and 19 CFR 351.212(b)(2), Commerce shall 
determine, and CBP shall assess, countervailing duties on all 
appropriate entries covered by this review.
    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 January 
1, 2021, through December 31, 2021, in accordance with 19 CFR 
351.212(c)(l)(i). For the companies remaining in the 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).

Cash Deposit Requirements

    In accordance with section 751(a)(2)(C) of the Act, Commerce also 
intends upon publication of the final results, to instruct U.S. Customs 
and Border Protection (CBP) to collect cash deposits of the estimated 
countervailing duties in the amounts calculated in the final results of 
this review for the respective companies listed above with regard to 
shipments of subject merchandise entered, or withdrawn from warehouse, 
for consumption on or after the date of publication of the final 
results of this 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.

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 28, 2024.
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 Faces 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. Alfa Aesar China Chemical Co., Ltd.
2. Focus Chemical B.V.
3. Haruno Sangyo Kaisha, Ltd.
4. Johoku Chemical Co., Ltd.
5. KD Finechem Co., Ltd.
6. New Essential Corp.
7. Sagar Speciality Chemicals Pvt., Ltd.
8. Shanghai Sunwise Chemical Co., Ltd.
9. Sinochem Pharmaceutical Co., Ltd.
10. Tianjin Jinbin International Trade
11. TotalEnergies Lubrifiants
12. Vcare Medicines
13. Wuxi Base International Trade Co., Ltd.
14. Xiamen Amity Industry & Trade Co., Ltd.
15. Yasho Industries Pvt. Ltd.
16. Zaozhuang Kerui Chemicals Co., Ltd.

[FR Doc. 2024-07071 Filed 4-2-24; 8:45 am]
BILLING CODE 3510-DS-P