[Federal Register Volume 90, Number 65 (Monday, April 7, 2025)]
[Notices]
[Pages 14961-14963]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-05885]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-923]
2,4-Dichlorophenoxyacetic Acid 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 2,4-dichlorophenoxyacetic Acid (2,4-D) from India. The period of
investigation is January 1, 2023, through December 31, 2023.
DATES: Applicable April 7, 2025.
FOR FURTHER INFORMATION CONTACT: Harrison Tanchuck or George McMahon,
AD/CVD Operations, Office VI, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-7421 or (202)
482-1167, respectively.
SUPPLEMENTARY INFORMATION:
Background
On September 13, 2024, Commerce published its Preliminary
Determination in the in the Federal Register and aligned this
countervailing duty (CVD) investigation with the final determination in
the less-than-fair-value investigation of 2,4-D from India, in
accordance with in accordance with section 705(a)(1) of the Tariff Act
of 1930, as amended (the Act), and 19 CFR 351.210(b)(4), Commerce
aligned the final CVD determination with the final antidumping duty
determination.\1\ On October 31, 2024, Commerce issued its Post-
Preliminary Analysis.\2\ For a summary of the events that occurred
since the Preliminary Determination, see the Issues and Decision
Memorandum.\3\ 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 2,4-Dichlorophenoxyacetic Acid from India: Preliminary
Affirmative Countervailing Duty Determination and Alignment of Final
Determination With Final Antidumping Duty Determination, 89 FR 74906
(September 13, 2024) (Preliminary Determination), and accompanying
Preliminary Decision Memorandum (PDM).
\2\ See Memorandum, ``Post-Preliminary Analysis,'' dated October
31, 2024 (Post-Preliminary Analysis).
\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of 2,4-Dichlorophenoxyacetic Acid from India,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is 2,4-D from India. For
a complete description of the scope of this investigation, see Appendix
I.
Scope Comments
We received no comments from interested parties on the scope of the
investigation as it appeared in the Preliminary Determination.
Therefore, we made no changes to the scope of the investigation from
that published in the Preliminary Determination for the final
determination.
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 interested 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.
Verification
As provided in section 782(i) of the Act, in November 2024,
Commerce conducted verification of the information reported by Atul
Limited (Atul), Meghmani Organics Limited (MOL), and the Government of
India (GOI) for use in our final determination. We used standard
verification procedures, including an examination of relevant account
records and original source documents provided by Atul, MOL, and the
GOI.\4\
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\4\ See Memoranda, ``Verification of the Questionnaire Responses
of the Government of India,'' dated January 14, 2025; ``Verification
of Atul Limited Questionnaire Responses,'' dated January 14, 2025;
and '' Verification of Meghmani Organics Limited's Questionnaire
Responses,'' dated January 14, 2025.
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Methodology
Commerce conducted this investigation in accordance with section
701 of 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.\5\ For a full
description of the methodology underlying our final determination, see
the Issues and Decision Memorandum.
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\5\ 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 available, including adverse facts available (AFA), pursuant to
sections 776(a) and (b) of the Act. For a full discussion of our
application of AFA, see the section ``Use of Facts Otherwise Available
and Adverse Inferences'' in the accompanying Issues and Decision
Memorandum.
Changes Since the Preliminary Determination
Based on our review and analysis of the information reviewed during
verification and analysis of comments received from interested parties,
for this final determination, we made certain changes to the
countervailable subsidy rate calculations for Atul, MOL, and for all
other producers/exporters, including the addition of subsidy programs
included in the Post-Preliminary Analysis. For a discussion of these
changes, see the Issues and Decision Memorandum.
All-Others Rate
In accordance with section 705(c)(1)(B)(i) of the Act, we
calculated an individual estimated countervailable subsidy rate for the
two mandatory respondents, Atul and MOL. 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, we continue to calculate individual
estimated countervailable subsidy rates for Atul and MOL that are not
zero, de minimis, or based entirely on facts otherwise available. We,
therefore, continue to calculate the all-others rate using a
[[Page 14962]]
weighted average of the individual estimated subsidy rates calculated
for the examined respondents (Atul and MOL) using each company's
publicly-ranged sales value for their exports to the United States of
subject merchandise,\6\ in accordance with section 705(c)(5)(A)(i) of
the Act.
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\6\ 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
Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010); see also Forged Steel Fluid End Blocks from
Italy: Preliminary Affirmative Countervailing Duty Determination,
and Alignment of Final Determination with Final Antidumping Duty
Determination, 85 FR 31460, 31461 (May 26, 2020), unchanged in
Forged Steel Fluid End Blocks from Italy: Final Affirmative
Countervailing Duty Determination, 85 80022, 80023 (December 11,
2020).
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Final Determination
Commerce determines that the following estimated net
countervailable subsidy rates exist for the period January 1, 2023,
through December 31, 2023:
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Subsidy rate
Company (percent ad
valorem)
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Atul Limited............................................ 5.29
Meghmani Organics Limited \7\........................... 6.32
All Others.............................................. 5.88
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Disclosure
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\7\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Meghmani Organics Limited: Epigral Limited; and Matangi Industries
LLP.
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Commerce intends to disclose its calculations performed to
interested parties in this final determination within five days of its
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, Commerce instructed U.S.
Customs and Border Protection (CBP) to collect cash deposits and
suspend liquidation of entries of subject merchandise from India that
were entered, or withdrawn from warehouse, for consumption on or after
September 13, 2024, the date of publication of the Preliminary
Determination in the Federal Register.\8\ 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 January 11, 2025, the final day of
provisional measures, but to continue the suspension of liquidation of
all entries of subject merchandise that were subject to suspension of
liquidation on or before January 10, 2025.
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\8\ See Preliminary Determination, 89 FR 74906.
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If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, reinstate
the suspension of liquidation under section 706(a) of the Act, and
require a cash deposit of estimated countervailing duties for entries
of subject merchandise in the amounts indicated above. Pursuant to
section 705(c)(2) 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
cancelled.
U.S. International Trade Commission 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 2,4-D from
India. As Commerce's final determination is affirmative, in accordance
with section 705(b) of the Act, the ITC will determine, within 45 days
after this final determination, whether the domestic industry in the
United States is materially injured, or threatened with material
injury, by reason of import of 2,4-D from India. 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.
If the ITC determines that material injury or threat of material
injury does not exist, this proceeding will be terminated and all cash
deposits posted 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 ``Suspension of Liquidation'' section.
Administrative Protective Order
This notice will serve as the only reminder to parties subject to
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: March 31, 2025.
Christopher Abbott,
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 Investigationz
The merchandise covered by this investigation is 2,4-
dichlorophenoxyacetic acid (2,4-D) and its derivative products,
including salt and ester forms of 2,4-D. 2,4-D has the Chemical
Abstracts Service (CAS) registry number of 94-75-7 and the chemical
formula C8H6Cl2O3.
Salt and ester forms of 2,4-D include 2,4-D sodium salt (CAS
2702-72-9), 2,4-D diethanolamine salt (CAS 5742-19-8), 2,4-D
dimethyl amine salt (CAS 2008-39-1), 2,4-D isopropylamine salt (CAS
5742-17-6), 2,4-D tri-isopropanolamine salt (CAS 3234180-3), 2,4-D
choline salt (CAS 1048373-72-3), 2,4-D butoxyethyl ester (CAS 1929-
733), 2,4-D 2-ethylhexylester (CAS 1928-43-4), and 2,4-D
isopropylester (CAS 94-11-1). All 2,4-D, as well as the salt and
ester forms of 2,4-D, is covered by the scope irrespective of
purity, particle size, or physical form.
The conversion of a 2,4-D salt or ester from 2,4-D acid, or the
formulation of nonsubject merchandise with the subject 2,4-D, its
salts, and its esters in the country of manufacture or in a third
country does not remove the subject 2,4-D, its salts, or its esters
from the scope. For any such formulations, only the 2,4-D, 2,4-D
salt, and 2,4-D ester components
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of the mixture is covered by the scope of the investigation.
Formulations of 2,4-D are products that are registered for end-use
applications with the Environmental Protection Agency and contain a
dispersion agent.
The country of origin of any 2,4-D derivative salt or ester is
determined by the country in which the underlying 2,4-D acid is
produced. 2,4-D, its salts, and its esters are classified under
Harmonized Tariff Schedule of the United States (HTSUS) subheading
2918.99.2010. Subject merchandise, including the abovementioned
formulations, may also be classified under HTSUS subheadings
2922.12.0001, 2921.11.0000, 2921.19.6195, 2922.19.9690,
3808.93.0500, and 3808.93.1500. The HTSUS subheadings and CAS
registry numbers are provided for convenience and customs purposes.
The written description of the scope of the investigation is
dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Use of Facts Otherwise Available and Adverse Inferences
IV. Subsidies Valuation
V. Changes Since the Preliminary Determination
VI. Analysis of Programs
VII. Discussion of the Issues
Comment 1: Whether Epigral Limited and Matangi Industries LLP
are Cross-Owned with MOL
Comment 2: Whether Epigral Limited and Matangi Industries LLP
Supplied Inputs to MOL that are Primarily Dedicated to Production of
Subject Merchandise
Comment 3: Whether the Duty Drawback Program is Countervailable
Comment 4: Whether Remission of Duties and Taxes on Export
Products is Countervailable
Comment 5: Whether the Advance Authorization Program is
Countervailable
Comment 6: Whether Commerce Should Exclude Invalidated Licenses
Under Advance Authorization Program from its Calculation of Benefit
Comment 7: Whether Commerce Should Exclude Goods and Services
Tax from Advance Authorization Program Benefit Calculation for MOL
Comment 8: Whether Benefit for Advance Authorization Program
Should be Calculated for Imports Made by Atul Itself and for Import
Duty Exemptions based on Standard Input Output Norms
Comment 9: Whether Commerce Correctly Applied Adverse Facts
Available to the State of Gujarat Electricity Duty Exemption--
Gujarat Electricity Duty Act of 1958 Program
Comment 10: Whether Commerce Should Determine that Atul Received
No Benefit Under the State of Gujarat Electricity Duty Exemption--
Gujarat Electricity Duty Act of 1958 Program
Comment 11: Whether State of Gujarat Provision of Water for Less
Than Adequate Remuneration (LTAR) is Countervailable
Comment 12: Whether Export Promotion of Capital Goods Scheme is
Countervailable
Comment 13: Whether Commerce Should Revise its Benefit
Calculation for MOL for Export Promotion of Capital Goods Scheme
Comment 14: Whether Commerce Should Determine that Atul received
no Benefit Under the Provision of Land for LTAR Program
Comment 15: Whether Commerce Should Adjust its Non-Use and Non-
Measurable Benefit Determinations for MOL
Comment 16: Whether Commerce Should Revise its Benefit
Calculated under Section 35(i)(iv) of the Income Tax Act
VIII. Recommendation
[FR Doc. 2025-05885 Filed 4-4-25; 8:45 am]
BILLING CODE 3510-DS-P