Chlorinated Isocyanurates From the People's Republic of China: Final Results of Countervailing Duty Administrative Review; 2021

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 the producers and exporters subject to the administrative review of chlorinated isocyanurates (chlorinated isos) from the People's Republic of China (China) during the period of review (POR) January 1, 2021, through December 31, 2021.

DATES:

Applicable June 11, 2024.

FOR FURTHER INFORMATION CONTACT:

Miranda Bourdeau or Eliza DeLong, 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) 482-2021 or (202) 482-3878, respectively.

SUPPLEMENTARY INFORMATION:

Background

On December 7, 2023, Commerce published the preliminary results of the 2021 administrative review of the countervailing duty order on chlorinated isos from China. This review covers two companies, Heze Huayi Chemical Co., Ltd. (Heze Huayi) and Juancheng Kangtai Chemical Co., Ltd. We invited interested parties to comment on the Preliminary Results. On March 27, 2024, we extended the deadline for these final results until June 4, 2024, in accordance with section 751(a)(3)(A) of the Tariff Act of 1930, as amended (the Act). For a complete description of the events that occurred since the Preliminary Results, see the Issues and Decision Memorandum.

Scope of the Order

The products covered by the Order are chlorinated isos from China. A full description of the scope of the Order is provided in the Issues and Decision Memorandum.

Analysis of Comments Received

A list of the issues that parties raised, to which we responded in the Issues and Decision Memorandum, is attached as an appendix to this notice. 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.

Changes Since the Preliminary Results

Based on arguments raised and a review of the record and all supporting documentation, we made certain changes to the Preliminary Results with respect to the subsidy rate calculation for the provision of land-use rights for less than adequate remuneration for the chemical industry program. For a discussion of the comments, see the Issues and Decision Memorandum.

Methodology

Commerce conducted this administrative review in accordance with section 751(a)(1)(A) of the Act. For each subsidy program found to be countervailable, Commerce finds that there is a subsidy, i.e., a financial contribution from a government or public entity that gives rise to a benefit to the recipient, and that the subsidy is specific. For a full description of the methodology underlying all of Commerce's conclusions, including any determination that relied upon the use of adverse facts available pursuant to sections 776(a) and (b) of the Act, see the Issues and Decision Memorandum.

Company Not Selected for Individual Review

We made no changes to the methodology for determining the rate assigned to Sincere Cooperation Material, the company not selected for individual examination, from the Preliminary Results. However, we revised this rate to reflect the changes to Heze Huayi's rate.

Final Results of Administrative Review

In accordance with 19 CFR 351.221(b)(5), Commerce calculated the following net countervailable subsidy rates for the period January 1, 2021, through December 31, 2021:

Disclosure

Commerce will disclose to interested parties the calculations performed for these final results within five days of public announcement or, if there is no public announcement, within five days of the date of publication of the notice of final results in the Federal Register , in accordance with 19 CFR 351.224(b).

Assessment

Pursuant to section 751(a)(2)(C) of the Act and 19 CFR 351.212(b)(2), Commerce will determine, and U.S. Customs and Border Protection (CBP) shall assess, countervailing duties on all appropriate entries of subject merchandise in accordance with the final results of this review, for the above-listed companies at the applicable ad valorem assessment rates listed. We intend to issue assessment instructions to CBP no earlier than 35 days after the date of publication of these final results of review. If a timely summons is filed at the U.S. Court of International Trade, the assessment instructions will direct CBP not to liquidate relevant entries until the time for parties to file a request for a statutory injunction has expired ( i.e., within 90 days of publication).

Cash Deposit Requirements

In accordance with section 751(a)(1) of the Act, Commerce intends to instruct CBP to collect cash deposits of estimated countervailing duties in the amounts shown for each of the respective companies listed above on shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the date of publication of the final results of this administrative review. For all non-reviewed firms subject to the Order, we will instruct CBP to continue to collect cash deposits of estimated countervailing duties at the most recent company-specific or all-others rate applicable to the company, as appropriate. These cash deposit requirements, effective upon publication of the final results of this review, shall remain in effect until further notice.

Administrative Protective Order

This notice also serves as a final reminder to parties subject to an administrative protective order (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 or 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 sanctionable violation.

Notification to Interested Parties

Commerce is issuing and publishing the final results of review in accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(5).

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary

II. Background

III. Scope of the Order

IV. Subsidies Valuation Information

V. Benchmarks

VI. Use of Facts Otherwise Available and Application of Adverse Inferences

VII. Analysis of Programs

VIII. Discussion of the Issues

Comment 1: Whether Commerce Should Apply Adverse Facts Available to the Program on the Provision of Land-Use Rights for Less Than Adequate Remuneration for the Chemical Industry

Comment 2: Whether Commerce Should Include Land-Use Rights Acquired Outside the AUL Period in its Benefit Calculation

IX. Recommendation