Frozen Warmwater Shrimp From the Socialist Republic of Vietnam: Final Affirmative Countervailing Duty Determination

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Federal RegisterOct 28, 2024
89 Fed. Reg. 85500 (Oct. 28, 2024)
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    Department of Commerce International Trade Administration
  • [C-552-838]
  • 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 frozen warmwater shrimp (shrimp) from the Socialist Republic of Vietnam (Vietnam). The period of investigation (POI) is January 1, 2022, through December 31, 2022.

    DATES:

    Applicable October 28, 2024.

    FOR FURTHER INFORMATION CONTACT:

    Adam Simons, AD/CVD Operations, Office IX, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-6172.

    SUPPLEMENTARY INFORMATION:

    Background

    On April 1, 2024, Commerce published its Preliminary Determination in the Federal Register and invited interested parties to comment. 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. For a complete discussion of the events that followed the Preliminary Determination, see the Issues and Decision Memorandum.

    See Frozen Warmwater Shrimp from the Socialist Republic of Vietnam: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination with Final Antidumping Duty Determination, 89 FR 22374 (April 1, 2024) ( Preliminary Determination), and accompanying Preliminary Decision Memorandum (PDM).

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

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

    Scope of the Investigation

    The merchandise covered by the scope of this investigation is shrimp from Vietnam. 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 Tariff Act of 1930, as amended (the Act), in May and June, 2024, Commerce conducted verification of the subsidy information reported by the Government of Vietnam (GOV), Soc Trang Seafood Joint Stock Company (STAPIMEX), and STAPIMEX's supplier Giang Hong Phuong for use in our final determination. We used standard verification procedures, including an examination of relevant accounting records and original source documents provided by STAPIMEX, Giang Hong Phuong, and the GOV.

    See Memoranda, “Verification of Soc Trang Seafood Joint Stock Company,” dated August 14, 2024; “Verification of the Government of the Socialist Republic of Vietnam,” dated August 29, 2024; and “Verification of Giang Hong Phuong,” dated July 31, 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.

    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, and the Issues and Decision Memorandum at the section entitled “Uses of Facts Available and Application of Adverse Inferences.”

    See Preliminary Determination PDM at 6-15.

    Changes Since the Preliminary Determination

    Based on our review and analysis of the information at verification and comments received from interested parties, we made changes to the subsidy rate calculations for Thong Thuan Company Limited to include the subsidy programs included in the Post-Preliminary Analysis Memo. For a discussion of these changes, see the Issues and Decision Memorandum.

    See Memorandum, “Post-Preliminary Analysis in the Countervailing Duty Investigation of Frozen Warmwater Shrimp from the Socialist Republic of Vietnam,” dated May 23, 2024; see also Issues and Decision Memorandum at Appendix for the revised AFA rate calculation.

    All-Others Rate

    Pursuant to section 705(c)(5)(A)(i) of the Act, 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. We continue to assign a rate based entirely on facts available to Thong Thuan Company Limited. Therefore, the only rate that that is not zero, de minimis, or based entirely on facts otherwise available is the rate calculated for STAPIMEX. Consequently, we continue to assign the rate calculated for STAPIMEX as the rate for all other producers and exporters, pursuant to section 705(c)(5)(A)(i) of the Act.

    Final Determination

    Commerce determines that the following estimated countervailable subsidy rates exist for the period January 1, 2022, through December 31, 2022:

    Company Subsidy rate (percent ad valorem)
    Soc Trang Seafood Joint Stock Company 2.84
    Thong Thuan Company Limited * 221.82
    All Others 2.84
    * Rate based on AFA.