Frozen Warmwater Shrimp From Indonesia: Final Negative Countervailing Duty Determination

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Federal RegisterOct 28, 2024
89 Fed. Reg. 85512 (Oct. 28, 2024)
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    Department of Commerce International Trade Administration
  • [C-560-843]
  • AGENCY:

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

    SUMMARY:

    The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are not being provided to producers and exporters of frozen warmwater shrimp (shrimp) from Indonesia. The period of investigation is January 1, 2022, through December 31, 2022.

    DATES:

    Applicable October 28, 2024.

    FOR FURTHER INFORMATION CONTACT:

    Kelsie Hohenberger, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2517.

    SUPPLEMENTARY INFORMATION:

    Background

    On April 1, 2024, Commerce published its Preliminary Determination in the Federal Register and invited interested parties to comment. 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 this final countervailing duty (CVD) determination with the final antidumping duty (AD) determinations of frozen warmwater shrimp from Ecuador and Indonesia. On July 22, 2024, Commerce tolled certain deadlines in this administrative proceeding by seven days. The deadline for the final determination is now October 21, 2024.

    See Frozen Warmwater Shrimp from Indonesia: Preliminary Negative Countervailing Duty Determination, and Alignment of Final Determination With the Final Antidumping Duty Determination, 89 FR 22383 (April 1, 2024) ( Preliminary Determination), and accompanying Preliminary Decision Memorandum (PDM).

    Id.,89 FR 22384.

    See Memorandum, “Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings,” dated July 22, 2024.

    A summary of the events that occurred since Commerce published the Preliminary Determination may be found in the Issues and Decision Memorandum. The Issues and Decision Memorandum is a public document and is made available to the public 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.

    See Memorandum, “Issues and Decision Memorandum for the Final Negative Determination in the Countervailing Duty Investigation of Frozen Warmwater Shrimp from Indonesia,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).

    Scope of the Investigation

    The merchandise covered by this investigation is shrimp from Indonesia. 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.

    Verification

    As provided in section 782(i) of the Act, in May 2024, we conducted verifications of information submitted by the Government of Indonesia (GOI), PT. Bahari Makmur Sejati (BMS), PT. First Marine Seafoods (First Marine), and BMS and First Marine's unaffiliated farmer-suppliers for use in our final determination. We used standard verification procedures, including an examination of relevant accounting records and original source documents provided by the GOI, BMS, First Marine, and the farmer-suppliers.

    Commerce determined that First Marine is cross-owned with PT Khom Foods. Hereinafter, both companies are collectively referred to as First Marine, unless stated otherwise.

    See Memoranda, “Verification of the Government of Indonesia Questionnaire Responses,” dated August 19, 2024; “Verification of the Questionnaire Responses of PT First Marine Seafoods,” dated August 9, 2024; “Verification of the Questionnaire Responses of PT. First Marine Seafoods' Unaffiliated Farmer-Supplier's Questionnaire Responses,” dated August 9, 2024; “Verification of the Questionnaire Responses of PT Bahari Makmur Sejati,” dated August 23, 2024; and “Verification of the Questionnaire Responses of BMS's Unaffiliated Farmer-Suppliers,” dated August 23, 2024.

    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 interested parties and addressed 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. For a full description of the methodology underlying our final determination, see the Issues and Decision Memorandum.

    See sections 771(5)(B) and (D) of the Act regarding financial contribution; see also section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity.

    Changes Since the Preliminary Determination

    Based on our analysis of the comments received from interested parties and our verification findings, we made certain changes to the subsidy rate calculations for BMS. For a discussion of these changes, see the Issues and Decision Memorandum.

    Final Determination

    Commerce determines that the following estimated countervailable subsidy rates exist:

    Company Subsidy rate (percent ad valorem)
    PT. Bahari Makmur Sejati 0.20 ( de minimis).
    PT. First Marine Seafoods/PT Khom Foods 0.71 ( de minimis).

    As discussed in the PDM, Commerce determined that PT Bahari Makmur Sejati is cross-owned with input suppliers PT International Packaging Manufacturing and PT Total Pack Indonesia.

    As discussed in the PDM, Commerce determined that PT First Marine Seafoods is cross-owned with PT Khom Foods, a producer/distributor of subject merchandise.