[Federal Register Volume 85, Number 230 (Monday, November 30, 2020)]
[Notices]
[Pages 76522-76524]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26331]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-714-001]
Phosphate Fertilizers From the Kingdom of Morocco: Preliminary
Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of phosphate fertilizers from the Kingdom of Morocco
(Morocco). The period of investigation is January 1, 2019 through
December 31, 2019. Interested parties are invited to comment on this
preliminary determination.
DATES: Applicable November 30, 2020.
FOR FURTHER INFORMATION CONTACT: Robert Palmer or Samuel Glickstein,
AD/CVD Operations, Office VIII, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-9068
or (202) 482-5307, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on July 23,
2020.\1\ On September 2, 2020, Commerce postponed the preliminary
determination of this investigation and the revised deadline is now
November 23, 2020.\2\ For a complete description of the events that
followed the initiation of this investigation, see the Preliminary
Decision Memorandum.\3\ A list of topics discussed in the Preliminary
Decision Memorandum is included as Appendix II to this notice. The
Preliminary 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 http://access.trade.gov. In
addition, a complete version of the Preliminary Decision Memorandum can
be accessed directly at http://enforcement.trade.gov/frn/. The signed
and electronic versions of the Preliminary Decision Memorandum are
identical in content.
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\1\ See Phosphate Fertilizers from the Kingdom of Morocco and
the Russian Federation: Initiation of Countervailing Duty
Investigations, 85 FR 44505 (July 23, 2020) (Initiation Notice).
\2\ See Phosphate Fertilizers from the Kingdom of Morocco and
the Russian Federation: Postponement of Preliminary Determinations
in the Countervailing Duty Investigations, 85 FR 54535 (September 2,
2020).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination of the Countervailing Duty Investigation
of Phosphate Fertilizers from the Kingdom of Morocco,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
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[[Page 76523]]
Scope of the Investigation
The products covered by this investigation are phosphate
fertilizers from Morocco. For a complete description of the scope of
this investigation, see Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage, (i.e., scope).\5\ No interested
party submitted timely comments on the scope of the investigation as it
appeared in the Initiation Notice.\6\ Therefore, no changes were made
to the scope of the investigation.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice.
\6\ Commerce's Letter, re: ``Countervailing Duty Investigation
of Phosphate Fertilizers from Morocco: Rejection of Untimely Filed
Scope Comments,'' dated August 24, 2020.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily 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.\7\
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\7\ 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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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce preliminarily calculated an
individual estimated countervailable subsidy rate for OCP S.A., the
only individually examined exporter/producer in this investigation.
Because the only individually calculated rate is not zero, de minimis,
or based entirely on facts otherwise available, the estimated weighted-
average rate calculated for OCP S.A. is the preliminary rate assigned
to all-other producers and exporters, pursuant to section
705(c)(5)(A)(i) of the Act.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (percent)
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OCP S.A.\8\............................................. 23.46
All-Others.............................................. 23.46
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Suspension of Liquidation
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\8\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
OCP S.A.: Jorf Fertilizers Company I, Jorf Fertilizers Company II,
Jorf Fertilizers Company III, Jorf Fertilizers Company IV, Jorf
Fertilizers Company V, and Maroc Phosphore.
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In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
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 the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Verification
Commerce is currently unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. Accordingly, we intend to take additional steps in lieu
of on-site verification. Commerce will notify interested parties of any
additional documentation or information required.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance. Interested parties
will be notified of the timeline for the submission of such case briefs
and written comments at a later date. Rebuttal briefs, limited to
issues raised in case briefs, may be submitted no later than seven days
after the deadline date for case briefs.\9\ Commerce has modified
certain of its requirements for serving documents containing business
proprietary information until further notice.\10\ Pursuant to 19 CFR
351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal
briefs in this investigation are encouraged to submit with each
argument: (1) A statement of the issue; (2) a brief summary of the
argument; and (3) a table of authorities.
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\9\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements). See also Temporary Rule
Modifying AD/CVD Service Requirements Due to COVID-19, 85 FR
17006, 17007 (March 26, 2020).
\10\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July
10, 2020).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its preliminary
determination. If Commerce's final determination is affirmative, the
ITC will make its final injury determination before the later of 120
days after the date of Commerce's preliminary determination or 45 days
after its final determination.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: November 23, 2020.
Joseph A. Laroski Jr.,
Deputy Assistant Secretary for Policy and Negotiations.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is phosphate
fertilizers in all physical forms (i.e., solid or liquid form), with
or without coating or additives such as anti-caking agents.
Phosphate fertilizers in solid form are covered whether granular,
[[Page 76524]]
prilled (i.e., pelletized), or in other solid form (e.g., powdered).
The covered merchandise includes phosphate fertilizers in the
following forms: ammonium dihydrogenorthophosphate or monoammonium
phosphate (MAP), chemical formula NH4H2PO4; diammonium
hydrogenorthophosphate or diammonium phosphate (DAP), chemical
formula (NH4)2HPO4; normal superphosphate (NSP), also known as
ordinary superphosphate or single superphosphate, chemical formula
Ca(H2PO4)2-CaSO4; concentrated superphosphate, also known as double,
treble, or triple superphosphate (TSP), chemical formula Ca(H2PO4)2-
H2O; and proprietary formulations of MAP, DAP, NSP, and TSP.
The covered merchandise also includes other fertilizer
formulations incorporating phosphorous and non-phosphorous plant
nutrient components, whether chemically-bonded, granulated (e.g.,
when multiple components are incorporated into granules through,
e.g., a slurry process), or compounded (e.g., when multiple
components are compacted together under high pressure), including
nitrogen, phosphate, sulfur (NPS) fertilizers, nitrogen,
phosphorous, potassium (NPK) fertilizers, nitric phosphate (also
known as nitrophosphate) fertilizers, ammoniated superphosphate
fertilizers, and proprietary formulations thereof that may or may
not include other nonphosphorous plant nutrient components. For
phosphate fertilizers that contain non-phosphorous plant nutrient
components, such as nitrogen, potassium, sulfur, zinc, or other non-
phosphorous components, the entire article is covered, including the
non-phosphorous content, provided that the phosphorous content
(measured by available diphosphorous pentaoxide, chemical formula
P2O5) is at least 5% by actual weight.
Phosphate fertilizers that are otherwise subject to this
investigation are included when commingled (i.e., mixed or blended)
with phosphate fertilizers from sources not subject to this
investigation. Phosphate fertilizers that are otherwise subject to
this investigation are included when commingled with substances
other than phosphate fertilizers subject to this investigation
(e.g., granules containing only non-phosphate fertilizers such as
potash or urea). Only the subject component of such commingled
products is covered by the scope of this investigation. The
following products are specifically excluded from the scope of this
investigation:
(1) ABC dry chemical powder preparations for fire extinguishers
containing MAP or DAP in powdered form;
(2) industrial or technical grade MAP in white crystalline form
with available P2O5 content of at least 60% by actual weight;
(3) industrial or technical grade diammonium phosphate in white
crystalline form with available P2O5 content of at least 50% by
actual weight;
(4) liquid ammonium polyphosphate fertilizers;
(5) dicalcium phosphate, chemical formula CaHPO4;
(6) monocalcium phosphate, chemical formula CaH4P2O8;
(7) trisodium phosphate, chemical formula Na3PO4;
(8) sodium tripolyphosphate, chemical formula Na5P3O10;
(9) prepared baking powders containing sodium bicarbonate and
any form of phosphate;
(10) animal or vegetable fertilizers not containing phosphate
fertilizers otherwise covered by the scope of this investigation;
(11) phosphoric acid, chemical formula H3PO4.
The Chemical Abstracts Service (CAS) numbers for covered
phosphate fertilizers include, but are not limited to: 7722-76-1
(MAP); 7783-28-0 (DAP); and 65996-95-4 (TSP). The covered products
may also be identified by Nitrogen-Phosphate- Potash composition,
including but not limited to: NP 11-52-0 (MAP); NP 18-46-0 (DAP);
and NP 0-46-0 (TSP).
The covered merchandise is currently classified in the
Harmonized Tariff Schedule of the United States (HTSUS) at
subheadings 3103.11.0000; 3103.19.0000; 3105.20.0000; 3105.30.0000;
3105.40.0010; 3105.40.0050; 3105.51.0000; and 3105.59.0000.
Phosphate fertilizers subject to this investigation may also enter
under subheadings 3103.90.0010, 3105.10.0000, 3105.60.0000,
3105.90.0010, and 3105.90.0050. Although 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 Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Subsidies Valuation
V. Benchmarks and Interest Rates
VI. Analysis of Programs
VII. Recommendation
[FR Doc. 2020-26331 Filed 11-27-20; 8:45 am]
BILLING CODE 3510-DS-P