[Federal Register Volume 90, Number 79 (Friday, April 25, 2025)]
[Notices]
[Pages 17373-17376]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-07132]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-169]
Certain Alkyl Phosphate Esters From the People's Republic of
China: 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 certain alkyl phosphate esters (alkyl phosphate esters) from the
People's Republic of China (China). The period of investigation (POI)
is January 1, 2023, through December 31, 2023.
DATES: Applicable April 25, 2025.
FOR FURTHER INFORMATION CONTACT: Benjamin Nathan or Gregory Taushani,
AD/CVD Operations, Office II, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-3834 or (202)
482-1012, respectively.
SUPPLEMENTARY INFORMATION:
Background
On October 4, 2024, Commerce published in the Federal Register its
preliminary determination in the countervailing duty (CVD)
investigation of alkyl phosphate esters from China and invited
interested parties to
[[Page 17374]]
comment.\1\ In the Preliminary Determination, and 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 determination in the less-than-fair-value investigation of
alkyl phosphate esters.\2\ On January 3, 2025, Commerce released its
Post-Preliminary Analysis.\3\
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\1\ See Certain Alkyl Phosphate Esters from the People's
Republic of China: Preliminary Affirmative Countervailing Duty
Determination and Alignment of Final Determination with Final
Antidumping Duty Determination, 89 FR 80870 (October 1, 2024)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum (PDM).
\2\ See Preliminary Determination, 89 FR at 80871.
\3\ See Memorandum, ``Post Preliminary Analysis,'' dated January
3, 2025 (Post-Preliminary Analysis Memorandum).
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For a complete description of the events that followed the
Preliminary Determination, see the Issues and Decision Memorandum.\4\
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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\4\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Alkyl Phosphate Esters from the People's Republic
of China,'' 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 alkyl phosphate
esters from China. For a complete description of the scope of the
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.
Verification
As provided in section 782(i) of the Act, Commerce conducted
verification of the subsidy information reported by company respondents
Anhui RunYue Technology Co., Ltd. (Anhui RunYue) and Zhejiang Wansheng
Technology Co., Ltd. (Zhejiang Wansheng), and the Government of China's
questionnaire responses pertaining to the Export Buyer's Credit
Program.\5\
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\5\ See Memoranda, ``Verification of the Questionnaire Responses
of the Government of China,'' dated November 22, 2024; see also
``Verification of the Questionnaire Responses of Anhui RunYue
Technology Co., Ltd.,'' dated February 26, 2025; and ``Verification
of the Questionnaire Responses of Zhejiang Wansheng Co., Ltd.,''
dated February 26, 2025.
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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.
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.\6\ For a full
description of the methodology underlying our final determination, see
the Issues and Decision Memorandum. In making this final determination,
Commerce relied, in part, on facts otherwise available, including with
an adverse inference, pursuant to sections 776(a) and (b) of the Act.
For a full discussion of our application of adverse facts available
(AFA), see the Preliminary Determination \7\ and the Issues and
Decision Memorandum at Comments 2, 6, and 8.
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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.
\7\ See Preliminary Determination PDM at 11-29.
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Changes Since the Preliminary Determination and Post-Preliminary
Analysis
Based on our review and analysis of the information received during
verification and comments received from parties, for this final
determination, we made certain changes to the countervailable subsidy
rate calculations for Anhui RunYue, Zhejiang Wansheng, and all other
producers/exporters. 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, Anhui RunYue and Zhejiang Wansheng. 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 total
net countervailable subsidy rates for Anhui RunYue and Zhejiang
Wansheng that are not zero, de minimis, or based entirely on facts
otherwise available. We, therefore, continue to calculate 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 sales value for their exports to the United
States of subject merchandise,\8\ in accordance with section
705(c)(5)(A)(i) of the Act.
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\8\ 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:
[[Page 17375]]
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Subsidy rate
Company (percent ad
valorem)
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Anhui RunYue Technology Co., Ltd.; Yixing RunYue 117.51
Enterprise Management Co., Ltd.\9\..................
Zhejiang Wansheng Co., Ltd.\10\...................... 81.82
Zhejiang Wanda Tools Group Corp...................... * 491.21
All Others........................................... 91.07
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*Rate is based on facts available with adverse inferences.
Disclosure
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\9\ As discussed in the Preliminary Determination, we found that
Anhui RunYue is cross-owned with Yixing RunYue Enterprise Management
Co., Ltd. For this final determination, Commerce continues to find
that these companies are cross owned.
\10\ As discussed in the Preliminary Determination, we found
that Zhejiang Wansheng is cross-owned with certain companies;
because the identity of these two companies is business proprietary,
the calculated subsidy rate applies only to Zhejiang Wansheng.
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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 as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after October 4, 2024, the date of
publication of the Preliminary Determination in the Federal
Register.\11\ 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 February 1, 2025, the final day of provisional measures, but
to continue the suspension of liquidation of all entries of subject
merchandise on or before January 31, 2025.
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\11\ See Preliminary Determination, 89 FR at 80871.
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If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order, reinstate the suspension of liquidation under section 706(a) of
the Act, and require a cash deposit of estimated countervailing duties
for such 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 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 alkyl
phosphate esters from China. As Commerce's final determination is
affirmative, in accordance with section 705(b) of the Act, the ITC will
determine, within 45 days, whether the domestic industry in the United
States is materially injured, or threated with material injury, by
reason of import of alkyl phosphate esters from China. In addition, we
are making available to the ITC all non-privileged and non-proprietary
information in our files, provided the ITC confirms that it will not
disclose such information, either publicly or under 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,
for consumption on or after the effective date of the suspension of
liquidation, as discussed above in the ``Continuation of Suspension of
Liquidation'' section.
Administrative Protective Order
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: April 18, 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 Investigation
The products covered by this investigation are alkyl phosphate
esters, which are halogenated and non-halogenated phosphorus-based
esters with a phosphorus content of at least 6.5 percent (per
weight) and a viscosity between 1 and 2000 mPa.s (at 20-25 [deg]C).
Merchandise subject to this investigation primarily includes
Tris (2-chloroisopropyl) phosphate (TCPP), Tris (1,3-
dichloroisopropyl) phosphate (TDCP), and Triethyl Phosphate (TEP)).
TCPP is also known as Tris (1-chloro-2- propyl) phosphate, Tris
(1-chloropropan-2-yl) phosphate, Tris (monochloroisopropyl)
phosphate (TMCP), and Tris (2-chloroisopropyl) phosphate (TCIP).
TCPP has the chemical formula
C9H18Cl3O4P and the
Chemical Abstracts Service (CAS) Nos. 1244733-77-4 and 13674-84-5.
It may also be identified as CAS No. 6145-73-9.
TDCP is also known as Tris (1,3-dichloroisopropyl) phosphate,
Tris (1,3-dichloro-2-propyl) phosphate, Chlorinated tris, tris {2-
chloro-1-(chloromethyl ethyl){time} phosphate, TDCPP, and TDCIPP.
TDCP has the chemical formula
C9H15Cl6O4P and the CAS
No. 13674-87-8.
TEP is also known as Phosphoric acid triethyl ester, phosphoric
ester, flame retardant TEP, Tris(ethyl) phosphate,
Triethoxyphosphine oxide, and Ethyl phosphate (neutral). TEP has the
chemical formula (C2H5O)3PO and the
CAS No. 78-40-0.
Imported alkyl phosphate esters are not excluded from the scope
of this investigation even if the imported alkyl phosphate ester
consists of a single isomer or combination of
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isomers in proportions different from the isomers ordinarily
provided in the market.
Also included in this investigation are blends including one or
more alkyl phosphate esters, with or without other substances, where
the alkyl phosphate esters account for 20 percent or more of the
blend by weight.
Alkyl phosphate esters are classified under subheading
2919.90.5050, Harmonized Tariff Schedule of the United States
(HTSUS). Imports may also be classified under subheadings
2919.90.5010 and 3824.99.5000, HTSUS. The HTSUS subheadings and CAS
registry numbers are provided for convenience and customs purposes.
The written description of the scope 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 Application of Adverse
Inferences
IV. Subsidies Valuation
V. Changes Since the Preliminary Determination and Post Preliminary
Analysis
VI. Analysis of Programs
VII. Discussion of the Issues
Comment 1: Whether Commerce Should Apply Adverse Facts Available
(AFA) in Its Analysis of the Export Buyer's Credit Program (EBCP)
Comment 2: Whether Commerce Should Revise Its Preliminary
Analysis Regarding the Provision of Phosphorous Oxychloride and
Propylene Oxide for Less Than Adequate Remuneration (LTAR)
Comment 3: Whether Commerce Should Continue To Countervail the
Provision of Electricity for LTAR
Comment 4: Whether Commerce Should Revise Its Denominators for
Anhui RunYue
Comment 5: Whether Zhejiang Wansheng Is Controlled by State-
Owned Enterprises (SOEs)
Comment 6: Whether to Apply AFA to Zhejiang Wansheng's Pre-AUL
Sales Figures and All Its Affiliate's Sales Figures
Comment 7: Whether Commerce Erred in Its Benchmark Calculations
for the Three Input LTAR Programs
Comment 8: Whether Commerce Should Apply AFA to Anhui RunYue for
Land Use
Comment 9: Whether the Income Tax Deduction for Research and
Development Expenses Under the Enterprise Income Tax (EIT) Law Is
Specific
Comment 10: Whether To Apply AFA to Anhui RunYue's 2022 Sales
Figures
Comment 11: Whether To Correct Certain Errors in Anhui RunYue's
Benefit Calculations
VIII. Recommendation
[FR Doc. 2025-07132 Filed 4-24-25; 8:45 am]
BILLING CODE 3510-DS-P