Countervailing Duty Determination for Alkyl Phosphate Esters

DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-169]
Certain Alkyl Phosphate Esters from the People’s Republic of China: Preliminary
Affirmative Countervailing Duty Determination and Alignment of Final Determination
with Final Antidumping Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, Department of
Commerce.

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily determines that
countervailable subsidies are being provided to producers and exporters of certain alkyl
phosphate esters (alkyl phosphate esters) from the People’s Republic of China (China). The
period of investigation is January 1, 2023, through December 31, 2023. Interested parties are
invited to comment on this preliminary determination.

DATES: Applicable [INSERT DATE OF PUBLICATION IN THE FEDERAL REGISTER].
FOR FURTHER INFORMATION CONTACT: Benjamin Nathan or Gregory Taushani,
AD/CVD Operations, Office II, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue, NW, Washington,
DC 20230; telephone: (202) 482-3834 or (202) 482-1012, 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 May 13, 2024.1 On July 5, 2024, Commerce postponed the preliminary
1 See Certain Alkyl Phosphate Esters from the People’s Republic of China: Initiation of Countervailing Duty
Investigation, 89 FR 43821 (May 20, 2024) (Initiation Notice).

This document is scheduled to be published in the
Federal Register on 10/04/2024 and available online at
https://federalregister.gov/d/2024-22940, and on https://govinfo.gov
determination of this investigation until September 20, 2024.2 On July 22, 2024, Commerce
tolled certain deadlines in this proceeding by seven days.3 The deadline for the preliminary
determination is now September 27, 2024.

For a complete description of the events that followed the initiation of this investigation,
see the Preliminary Decision Memorandum.4 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 https://access.trade.gov. In addition, a
complete version of the Preliminary Decision Memorandum can be accessed directly at
https://access.trade.gov/public/FRNoticesListLayout.aspx.

Scope of the Investigation
The products covered by this investigation are alkyl phosphate esters from China. For a
complete description of the scope of this investigation, see Appendix I.

Scope Comments
In accordance with the preamble to Commerce’s regulations,5 in the Initiation Notice
Commerce set aside a period of time for parties to raise issues regarding product coverage (i.e.,
scope).6 Certain interested parties commented on the scope of the antidumping duty (AD) and
countervailing duty (CVD) investigations as it appeared in the Initiation Notice. Commerce
intends to issue its preliminary decision regarding comments concerning the scope of the AD and
CVD investigation on or before the preliminary determination of the companion AD
investigation.

2 See Alkyl Phosphate Esters from the People’s Republic of China: Postponement of Preliminary Determination in
the Countervailing Duty Investigation, 89 FR 55585 (July 5, 2024).
3 See Memorandum, “Tolling of Deadlines,” dated July 22, 2024.
4 See Memorandum, “Decision Memorandum for the Preliminary Affirmative Determination of the Countervailing
Duty Investigation of Alkyl Phosphate Esters from the People’s Republic of China,” dated concurrently with, and
hereby adopted by, this notice (Preliminary Decision Memorandum).
5 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997) (Preamble).
6 See Initiation Notice.

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 For a full description of the methodology
underlying our preliminary determination, see the Preliminary Decision Memorandum.
Commerce notes that, in making these findings, it relied, in part, on facts available, and,
because it finds that one or more respondents did not act to the best of their ability to respond to
Commerce’s requests for information, it drew an adverse inference where appropriate in
selecting from among the facts otherwise available.8 For further information, see the “Use of
Facts Otherwise Available and Adverse Inferences” section in the Preliminary Decision
Memorandum.

Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final CVD determination in this investigation with the final determination in the
concurrent less than fair value (LTFV) investigation of alkyl phosphate esters from China based
on a request made by ICL-IP America, Inc., the petitioner.9 Consequently, the final CVD
determination will be issued on the same date as the final LTFV determination, which is
currently scheduled to be issued no later than February 9, 2025, unless postponed.

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
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.
8 See sections 776(a) and (b) of the Act.
9 See Petitioners’ Letter, “Request for Alignment of the Countervailing Duty Investigation with the Concurrent
Antidumping Duty Investigation,” dated September 13, 2024.
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 individual estimated
countervailable subsidy rates for Anhui RunYue Technology Co., Ltd. (Anhui) and Zhejiang
Wansheng Co., Ltd.(Zhejiang Wansheng) that are not zero, de minimis, or based entirely on facts
otherwise available. Commerce calculated the all-others rate using a weighted-average of the
individual estimated subsidy rates calculated for the examined respondents using each
company’s publicly ranged values for the merchandise under consideration.

10
Preliminary Determination
Commerce preliminarily determines that the following estimated countervailable subsidy
rates exist:
Company Subsidy Rate
(percent ad valorem)
Anhui RunYue Technology Co., Ltd.11 96.83
Zhejiang Wansheng Co., Ltd.12 35.47
Zhejiang Wanda Tools Group Corp. 564.13*
All Others 50.15

*Rate is based on facts available with adverse inferences

Read more here: https://www.federalregister.gov/public-inspection/2024-22940/antidumping-or-countervailing-duty-investigations-orders-or-reviews-certain-alkyl-phosphate-esters