[Federal Register Volume 78, Number 160 (Monday, August 19, 2013)]
[Notices]
[Pages 50387-50389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-20172]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-552-815]
Certain Frozen Warmwater Shrimp From the Socialist Republic of
Vietnam: Final Affirmative Countervailing Duty Determination
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that
countervailable subsidies are being provided to producers and/or
exporters of certain frozen warmwater shrimp (frozen shrimp) from the
Socialist Republic of Vietnam (Vietnam). For information on the
estimated subsidy rates, see the ``Suspension of Liquidation'' section
of this notice.
DATES: Effective Date: August 19, 2013.
FOR FURTHER INFORMATION CONTACT: Michael Romani or Dustin Ross, AD/CVD
Operations, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230; telephone: (202) 482-0198 and (202) 482-0747,
respectively.
Background
The petitioner in this investigation is the Coalition of Gulf
Shrimp Industries (Petitioner).\1\ In addition to the Government of
Vietnam, the respondents in this investigation are Minh Qui Seafood
Co., Ltd. (Minh Qui) \2\ and Nha Trang Seaproduct Company (Nha Trang).
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\1\ The members of the Coalition of Gulf Shrimp Industries are:
Bayou Shrimp Processors, Inc.; Bluewater Shrimp Company, Inc.;
Carson & Co., Inc.; C.F. Gollott & Sons Seafood, Inc.; Dean
Blanchard Seafood, Inc.; Dominick Seafood; Fisherman's Reef Packing
Plant; Golden Gulf Coast Pkg. Co., Inc. (and Gollott's Oil Dock &
Ice House); Graham Fisheries, Inc.; Graham Shrimp, Inc.; Gulf Crown
Seafood Co., Inc.; Gulf Fish Inc.; Gulf Island Shrimp & Seafood,
LLC; Gulf Pride Enterprises, Inc.; Hi-Seas of Dulac, Inc.; Indian
Ridge Shrimp Co.; JBS Packing Co., Inc.; Lafitte Frozen Foods Corp.;
M&M Shrimp (Biloxi Freezing and Processing); Ocean Springs Seafood
Market, Inc.; Paul Piazza & Sons, Inc.; R.A. Lesso Brokerage Co.,
Inc.; Sea Pearl Seafood Co., Inc.; Smith and Sons Seafood; Tidelands
Seafood Co., Inc.; Tommy's Seafood; Vincent Piazza & Sons Seafood,
Inc.; Wood's Fisheries; Mariah Jade Shrimp Company, LLC; David
Chauvin's Seafood Company, LLC; and Rountree Enterprises, Inc. (dba
Leonard & Sons Shrimp Co. and R&R Fisheries).
\2\ In the Preliminary Determination, we inadvertently referred
to Minh Qui as ``Minh Qui Seafoods Co. Ltd.'' rather than its proper
name, ``Minh Qui Seafood Co., Ltd.'' See Certain Frozen Warmwater
Shrimp From the Socialist Republic of Vietnam: Preliminary
Countervailing Duty Determination, 78 FR 33342 (June 4, 2013)
(Preliminary Determination). This notice corrects that incorrect
reference.
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Period of Investigation
The period for which we are measuring subsidies, or period of
investigation, is January 1, 2011, through December 31, 2011.
Case History
The events that have occurred since the Department published the
Preliminary Determination on June 4, 2013, are discussed in the
Memorandum to Paul Piquado, Assistant Secretary for Import
Administration, ``Issues and Decision Memorandum for the Final
Determination in the Countervailing Duty Investigation of Certain
Frozen Warmwater Shrimp from the Socialist Republic of Vietnam''
(Decision Memorandum).\3\
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\3\ Public versions of all business proprietary documents and
all public documents are on file electronically via Import
Administration's Antidumping and Countervailing Duty Centralized
Electronic Service System (IA ACCESS). Access to IA ACCESS is
available to registered users at http://iaaccess.trade.gov and in
the Department's Central Records Unit (CRU), room 7046 of the main
Department of Commerce building.
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[[Page 50388]]
Scope Comments
On March 28, 2013, Petitioner asked the Department to clarify that
the scope of this investigation does not include brine-frozen
shrimp.\4\ We have addressed this request and comments thereon in the
Memorandum to Paul Piquado, Assistant Secretary for Import
Administration, ``Certain Frozen Warmwater Shrimp from Ecuador, India,
Indonesia, Malaysia, People's Republic of China, Thailand, and
Socialist Republic of Vietnam--Final Scope Memorandum Regarding Onboard
Brine-Frozen Shrimp,'' which is hereby adopted by this notice.
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\4\ See Letter from Petitioner, ``Countervailing Duty
Investigation on Certain Frozen Warmwater Shrimp from the Socialist
Republic of Vietnam (C-552-815)--Request for Scope Clarification,''
(March 28, 2013).
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Scope of the Investigation
This investigation covers certain frozen warmwater shrimp and
prawns, whether wild-caught (ocean harvested) or farm-raised (produced
by aquaculture), head-on or head-off, shell-on or peeled, tail-on or
tail-off, deveined or not deveined, cooked or raw, or otherwise
processed in frozen form, regardless of size. See Appendix I for a
complete description of the scope of this investigation.
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 Decision Memorandum, which is hereby adopted by this
notice. A list of subsidy programs and the issues that parties have
raised, and to which we responded in the Decision Memorandum, is
attached to this notice as Appendix II. The Decision Memorandum is a
public document and is on file electronically via IA ACCESS. IA ACCESS
is available to registered users at http://iaaccess.trade.gov and in
the CRU, room 7046 of the main Department of Commerce building. In
addition, a complete version of the Decision Memorandum can be accessed
directly on the Internet at http://www.trade.gov/ia/. The signed
Decision Memorandum and the electronic version of the Decision
Memorandum are identical in content.
Suspension of Liquidation
In accordance with section 705(c)(1)(B)(i) of the Tariff Act of
1930, as amended (the Act), we have calculated a rate for each company
respondent. Section 705(c)(5)(A)(i) of the Act states that for
companies not individually investigated, we will determine an ``all
others'' rate equal to the weighted average countervailable subsidy
rates established for exporters and producers individually
investigated, excluding any zero and de minimis countervailable subsidy
rates, and any rates determined entirely under section 776 of the Act.
Notwithstanding the language of section 705(c)(5)(A)(i) of the Act,
we have not calculated the ``all others'' rate by weight averaging the
rates of Minh Qui and Nha Trang, because doing so risks disclosure of
proprietary information. Therefore, we have calculated a simple average
of the rates calculated for Minh Qui and Nha Trang. Since both Minh Qui
and Nha Trang received countervailable export subsidies and the ``all
others'' rate is an average based on the individually investigated
respondents, the ``all others'' rate includes export subsidies.
We determine the total estimated net countervailable subsidy rates
to be:
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Company Subsidy rate (percent)
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Minh Qui Seafood Co., Ltd................. 7.88 (ad valorem)
Nha Trang Seaproduct Company.............. 1.15 (ad valorem)
All Others................................ 4.52 (ad valorem)
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As a result of our Preliminary Determination, and pursuant to
section 703(d) of the Act, we instructed U.S. Customs and Border
Protection (CBP) to suspend liquidation of all entries of subject
merchandise from Vietnam that were entered, or withdrawn from
warehouse, for consumption on or after June 4, 2013, the date of
publication of the Preliminary Determination in the Federal Register.
In accordance with section 705(c)(1)(B)(ii) of the Act, we are
directing CBP to continue to suspend liquidation of all imports of
subject merchandise from Vietnam that are entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register, and to collect estimated duties in the
amounts shown above. The suspension of liquidation will remain in
effect until further notice.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order under section 706(a) 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. Moreover, in
accordance with section 705(c)(2) of the Act, we will instruct CBP to
release any bond or other security and refund any cash deposits that
were collected for shipments of subject merchandise entered, or
withdrawn from warehouse, on or after June 4, 2013, the date that we
instructed CBP to suspend liquidation following the Preliminary
Determination. The interest provisions of section 778 of the Act do not
apply.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary 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 Import Administration.
Return or Destruction of Proprietary Information
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an 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 that is subject to sanction.
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act.
Dated: August 12, 2013.
Paul Piquado,
Assistant Secretary for Import Administration.
Appendix I
Scope of the Investigation
The products covered by this investigation are certain frozen
warmwater shrimp and prawns, whether wild-caught (ocean harvested)
or farm-raised (produced by aquaculture), head-on or head-off,
shell-on or
[[Page 50389]]
peeled, tail-on or tail-off,\5\ deveined or not deveined, cooked or
raw, or otherwise processed in frozen form, regardless of size.
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\5\ ``Tails'' in this context means the tail fan, which includes
the telson and the uropods.
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The frozen warmwater shrimp and prawn products included in the
scope, regardless of definitions in the Harmonized Tariff Schedule
of the United States (``HTSUS''), are products which are processed
from warmwater shrimp and prawns through freezing and which are sold
in any count size.
The products described above may be processed from any species
of warmwater shrimp and prawns. Warmwater shrimp and prawns are
generally classified in, but are not limited to, the Penaeidae
family. Some examples of the farmed and wild-caught warmwater
species include, but are not limited to, whiteleg shrimp (Penaeus
vannemei), banana prawn (Penaeus merguiensis), fleshy prawn (Penaeus
chinensis), giant river prawn (Macrobrachium rosenbergii), giant
tiger prawn (Penaeus monodon), redspotted shrimp (Penaeus
brasiliensis), southern brown shrimp (Penaeus subtilis), southern
pink shrimp (Penaeus notialis), southern rough shrimp (Trachypenaeus
curvirostris), southern white shrimp (Penaeus schmitti), blue shrimp
(Penaeus stylirostris), western white shrimp (Penaeus occidentalis),
and Indian white prawn (Penaeus indicus).
Frozen shrimp and prawns that are packed with marinade, spices
or sauce are included in the scope. In addition, food preparations
(including dusted shrimp), which are not ``prepared meals,'' that
contain more than 20 percent by weight of shrimp or prawn are also
included in the scope.
Excluded from the scope are: (1) Breaded shrimp and prawns; (2)
shrimp and prawns generally classified in the Pandalidae family and
commonly referred to as coldwater shrimp, in any state of
processing; (3) fresh shrimp and prawns whether shell-on or peeled;
(4) shrimp and prawns in prepared meals; (5) dried shrimp and
prawns; (6) canned warmwater shrimp and prawns; and (7) certain
``battered shrimp'' (see below).
``Battered shrimp'' is a shrimp-based product: (1) That is
produced from fresh (or thawed-from-frozen) and peeled shrimp; (2)
to which a ``dusting'' layer of rice or wheat flour of at least 95
percent purity has been applied; (3) with the entire surface of the
shrimp flesh thoroughly and evenly coated with the flour; (4) with
the non-shrimp content of the end product constituting between four
and 10 percent of the product's total weight after being dusted, but
prior to being frozen; and (5) that is subjected to individually
quick frozen (``IQF'') freezing immediately after application of the
dusting layer. When dusted in accordance with the definition of
dusting above, the battered shrimp product is also coated with a wet
viscous layer containing egg and/or milk, and par-fried.
The products included in the scope of this investigation are
currently classified under the following HTSUS subheadings:
0306.17.00.03, 0306.17.00.06, 0306.17.00.09, 0306.17.00.12,
0306.17.00.15, 0306.17.00.18, 0306.17.00.21, 0306.17.00.24,
0306.17.00.27, 0306.17.00.40, 1605.21.10.30 and 1605.29.10.10. These
HTSUS subheadings are provided for convenience and for customs
purposes only and are not dispositive, but rather the written
description of the scope is dispositive.
Appendix II
List of Comments and Issues in the Decision Memorandum
Comment 1: Aquaculture and Seafood Processing Plans Serving as Basis
for Providing Countervailable Subsidies
Comment 2: Specificity of Sectoral Plans with Respect to Policy
Lending and the Provision of Land
Comment 3: Interest Rate Support Program under the State Bank of
Vietnam (SBV)
Comment 4: Vietinbank Export Lending Program
Comment 5: Loan Benchmarks
Comment 6: Land Benchmarks
Comment 7: Whether Minh Phu Group Benefitted from Import Duty
Exemptions for Raw Materials
Comment 8: The Application of Section 771B of the Act (the
Agricultural Processing Provision) to Subsidies to Fresh Shrimp
Farmers
Comment 9: The Attribution of Fresh Shrimp Subsidies to the
Respondent Processors: Use of a Simple or Weighted Average
Comment 10: The Attribution of Fresh Shrimp Subsidies to Respondent
Processors: Proper Sales Denominator
Comment 11: Two Percent de minimis Standard
Comment 12: Income Tax Preference Under Chapter V of Decree 24
[FR Doc. 2013-20172 Filed 8-16-13; 8:45 am]
BILLING CODE 3510-DS-P