<NOTICE>
DEPARTMENT OF COMMERCE
<SUBAGY>International Trade Administration</SUBAGY>
<DEPDOC>[C-533-925]</DEPDOC>
<SUBJECT>Melamine From India: Final Affirmative Countervailing Duty Determination and Critical Circumstances Determination</SUBJECT>
<HD SOURCE="HED">AGENCY:</HD>
Enforcement and Compliance, International Trade Administration, Department of Commerce.
<SUM>
<HD SOURCE="HED">SUMMARY:</HD>
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of melamine from India. This investigation covers one mandatory respondent, Gujarat State Fertilizers and Chemicals Limited (Gujarat Fertilizers), and the period (POI) January 1, 2023, through December 31, 2023.
</SUM>
<DATES>
<HD SOURCE="HED">DATES:</HD>
Applicable February 12, 2025.
</DATES>
<FURINF>
<HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
Paul Kebker or Dylan Hill, AD/CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2254 or (202) 482-1197, respectively.
</FURINF>
<SUPLINF>
<HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
<HD SOURCE="HD1">Background</HD>
On July 22, 2024, Commerce published in the
<E T="04">Federal Register</E>
its
<E T="03">Preliminary Determination</E>
in the countervailing duty (CVD) investigation of melamine from India.
<SU>1</SU>
<FTREF/>
Also on July 22, 2024, Commerce tolled certain deadlines in this investigation by seven days.
<SU>2</SU>
<FTREF/>
On October 16, 2024, Commerce issued its post-preliminary determination regarding new subsidy allegations.
<SU>3</SU>
<FTREF/>
<FTNT>
<SU>1</SU>
<E T="03">See Melamine from India: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, and Alignment of Final Determination with the Final Antidumping Duty Determination,</E>
89 FR 59055 (July 22, 2024) (
<E T="03">Preliminary Determination</E>
), and accompanying Preliminary Decision Memorandum (PDM).
</FTNT>
<FTNT>
<SU>2</SU>
<E T="03">See</E>
Memorandum, “Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings,” dated July 22, 2024.
</FTNT>
<FTNT>
<SU>3</SU>
<E T="03">See</E>
Memorandum, “Post-Preliminary Decision Memorandum,” dated October 16, 2024 (Post-Preliminary Memorandum).
</FTNT>
Because Commerce aligned the deadline for this final determination with the deadline for the final determination in the less-than-fair-value (LTFV) investigation of melamine from India, the deadline for the final determination is now February 6, 2025.
<SU>4</SU>
<FTREF/>
<FTNT>
<SU>4</SU>
<E T="03">See Preliminary Determination,</E>
89 FR at 59056;
<E T="03">see also Melamine from India: Postponement of Final Determination of Sales at Less Than Fair Value Investigation,</E>
89 FR 84533 (October 23, 2024).
</FTNT>
For a complete description of the events that occurred after Commerce issued the
<E T="03">Preliminary Determination, see</E>
the Issues and Decision Memorandum.
<SU>5</SU>
<FTREF/>
The Issues and Decision Memorandum is a public document that 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
<E T="03">https://access.trade.gov.</E>
In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at
<E T="03">https://access.trade.gov/public/FRNoticesListLayout.aspx.</E>
<FTNT>
<SU>5</SU>
<E T="03">See</E>
Memorandum, “Issues and Decision Memorandum for the Final Affirmative Determination of the Countervailing Duty Investigation of Melamine from India,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).
</FTNT>
<HD SOURCE="HD1">Scope of the Investigation</HD>
The product covered by this investigation is melamine from India. For a complete description of the scope of the investigation,
<E T="03">see</E>
Appendix I to this notice.
<HD SOURCE="HD1">Scope Comments</HD>
We received no comments from interested parties on the scope of the investigation as it appeared in the
<E T="03">Preliminary Determination.</E>
<SU>6</SU>
<FTREF/>
Therefore, we made no changes to the scope of the investigation.
<FTNT>
<SU>6</SU>
<E T="03">See Preliminary Determination,</E>
89 FR at 59055 and Appendix I.
</FTNT>
<HD SOURCE="HD1">Verification</HD>
As provided in section 782(i) of the Tariff Act of 1930, as amended (the Act), in October 2024, Commerce conducted a verification of the information reported by Gujarat Fertilizers and the Government of India (GOI). As explained in the accompanying Issues and Decision Memorandum, Commerce was not able to verify the information provided by Gujarat Fertilizers due to its lack of cooperation at verification. Commerce was able to complete its verification of the GOI. Commerce used standard verification procedures, including an examination of relevant documents provided at verification, in conducting its verification of the GOI.
<HD SOURCE="HD1">Analysis of Subsidy Programs and Comments Received</HD>
We have discussed the subsidy programs under investigation, and addressed the issues raised in interested parties' case and rebuttal briefs in the Issues and Decision Memorandum. For a list of the issues addressed in the Issues and Decision Memorandum,
<E T="03">see</E>
Appendix II.
<HD SOURCE="HD1">Methodology</HD>
Commerce conducted this investigation in accordance with section 701 of the Act. For each of the subsidy programs found to be countervailable, Commerce has determined that the program provides a subsidy,
<E T="03">i.e.,</E>
Commerce found that there was a financial contribution by an “authority,” the financial contribution provided a benefit to the recipient, and the subsidy is specific.
<SU>7</SU>
<FTREF/>
In making this determination, Commerce relied on total adverse facts available (AFA) with respect to Gujarat Fertilizers based on its lack of cooperation at verification and partial AFA with respect to the GOI because it did not act to the best of its ability to respond to Commerce's requests for information.
<SU>8</SU>
<FTREF/>
For a full description of the methodology underlying this final determination, including Commerce's application of AFA,
<E T="03">see</E>
the Issues and Decision Memorandum.
<FTNT>
<SU>7</SU>
<E T="03">See</E>
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.
</FTNT>
<FTNT>
<SU>8</SU>
<E T="03">See</E>
sections 776(a) and (b) of the Act.
</FTNT>
<HD SOURCE="HD1">Final Affirmative Determination of Critical Circumstances</HD>
In accordance with sections 705(a)(2), and 776(a) and (b) of the Act, and 19 CFR 351.206,
<SU>9</SU>
<FTREF/>
Commerce continues to find that critical circumstances exist with respect to imports of melamine from Gujarat Fertilizers and all other producers/exporters of melamine in India. For a full discussion of Commerce's critical circumstances determination,
<E T="03">see</E>
the Issues and Decision Memorandum.
<FTNT>
<SU>9</SU>
<E T="03">See Preliminary Determination</E>
PDM.
</FTNT>
<HD SOURCE="HD1">Changes Since the Preliminary Determination and Post-Preliminary Analysis</HD>
As noted above, we are now basing Gujarat Fertilizers' countervailable subsidy rate on total AFA. For a discussion of this change,
<E T="03">see</E>
the Issues and Decision Memorandum.
<HD SOURCE="HD1">All-Others Rate</HD>
Section 705(c)(5)(A) of the Act provides that in a final determination, Commerce shall determine an estimated all-others rate for companies not individually examined equal to the weighted average of the estimated countervailable subsidy rates established for exporters and producers individually examined, excluding any zero or
<E T="03">de minimis</E>
countervailable subsidy rates and any rates based entirely under section 776 of the Act (facts available). If the individual estimated countervailable subsidy rates established for all exporters and producers individually examined are zero,
<E T="03">de minimis,</E>
or determined entirely under section 776 of the Act, section 705(c)(5)(A)(ii) of the Act provides that Commerce may use any reasonable method to establish an estimated all-others countervailable subsidy rate for exporters and producers not individually investigated, including averaging the weighted average countervailable subsidy rates determined for the exporters and producers individually investigated.
Commerce determined Gujarat Fertilizers' estimated countervailable subsidy rate entirely under section 776 of the Act. Gujarat Fertilizers is the sole producer/exporter individually examined in this investigation and there are no other countervailable subsidy rates on the record. Given these facts, Commerce has determined that a reasonable method for establishing the estimated all-others countervailable subsidy rate is to assign Gujarat Fertilizers' estimated countervailable subsidy rate to all other producers and exporters.
<HD SOURCE="HD1">Final Determination</HD>
Commerce determines that the following estimated net countervailable subsidy rate exists for the period January 1, 2023, through December 31, 2023:
<GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s25,11">
<TTITLE> </TTITLE>
<CHED H="1">Company</CHED>
<CHED H="1">
Subsidy rate
(percent
<E T="03">ad valorem</E>
<ENT I="01">Gujarat State Fertilizers and Chemicals Limited</ENT>
<ENT>276.06</ENT>
</ROW>
<ROW>
<ENT I="01">All Others</ENT>
<ENT>276.06</ENT>
</ROW>
</GPOTABLE>
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