[Federal Register Volume 75, Number 115 (Wednesday, June 16, 2010)]
[Notices]
[Pages 34100-34106]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14534]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-848]
Freshwater Crawfish Tail Meat From the People's Republic of
China: Preliminary Results of Antidumping Duty Administrative and New-
Shipper Reviews
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to timely requests, the Department of Commerce
(the Department) is conducting an administrative review and a new-
shipper review of the antidumping duty order on freshwater crawfish
tail meat from the People's Republic of China (PRC). The period of
review (POR) is September 1, 2008, through August 31, 2009.
With respect to the administrative review, we have preliminarily
determined that sales have been made below normal value by Xiping Opeck
Food Co., Ltd., Shanghai Ocean Flavor International Trading Co., Ltd.,
China Kingdom (Beijing) Import & Export Co., Ltd., and Xuzhou Jinjiang
Foodstuffs Co., Ltd.
With respect to the new-shipper review, we have preliminarily
determined that Nanjing Gemsen International Co., Ltd., has made sales
in the United States at prices below normal value.
We invite interested parties to comment on these preliminary
results. Parties who submit comments in this review are requested to
submit with each argument (1) a statement of the issue and (2) a brief
summary of the argument.
DATES: Effective Date: June 16, 2010.
[[Page 34101]]
FOR FURTHER INFORMATION CONTACT: Dmitry Vladimirov or Minoo Hatten, AD/
CVD Operations, Office 5, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0665 and (202) 482-1690, respectively.
Background
On September 15, 1997, the Department published in the Federal
Register an amended final determination and antidumping duty order on
freshwater crawfish tail meat from the PRC. See Notice of Amendment to
Final Determination of Sales at Less Than Fair Value and Antidumping
Duty Order: Freshwater Crawfish Tail Meat from the People's Republic of
China, 62 FR 48218 (September 15, 1997). On September 1, 2009, the
Department published in the Federal Register a notice of opportunity to
request an administrative review of the order. See Antidumping or
Countervailing Duty Order, Finding, or Suspended Investigation;
Opportunity to Request Administrative Review, 74 FR 45179 (September 1,
2009).
On October 26, 2009, based on timely requests for an administrative
review, the Department published in the Federal Register a notice of
initiation of an administrative review of the antidumping duty order on
freshwater crawfish tail meat from the PRC. See Initiation of
Antidumping and Countervailing Duty Administrative Reviews and Request
for Revocation in Part, 74 FR 54956 (October 26, 2009). The review was
initiated with respect to Shanghai Ocean Flavor International Trading
Co., Ltd. (Shanghai Ocean Flavor), China Kingdom (Beijing) Import &
Export Co., Ltd. (China Kingdom), Xiping Opeck Food Co., Ltd. (Xiping
Opeck), Xuzhou Jinjiang Foodstuffs Co., Ltd. (Jinjiang), and Yancheng
Hi-King Agriculture Developing Co., Ltd. (Hi-King).
On December 9, 2009, we determined to examine all companies for
which we received requests for an administrative review. See Memorandum
entitled ``Freshwater Crawfish Tail Meat From the People's Republic of
China: Issuance of Questionnaires,'' dated December 9, 2009.
On January 25, 2010, in accordance with 19 CFR 351.213(d)(1), the
petitioner withdrew its request for an administrative review of Hi-
King. Because the petitioner was the only party that requested a review
of Hi-King, the Department rescinded the review with respect to this
company. See Freshwater Crawfish Tail Meat from the People's Republic
of China: Rescission of Antidumping Duty Administrative Review in Part,
75 FR 13497 (March 22, 2010).
On September 17, 2009, Nanjing Gemsen International Co., Ltd.
(Nanjing Gemsen), an exporter of crawfish tail meat from the PRC,
requested a new-shipper review in accordance with 19 CFR 351.214(c).
On October 30, 2009, the Department initiated a new-shipper review
of Nanjing Gemsen covering the period September 1, 2008, through August
31, 2009. See Freshwater Crawfish Tail Meat From the People's Republic
of China: Notice of Initiation of Antidumping Duty New-Shipper Review,
74 FR 56180 (October 30, 2009).
On March 29, 2010, in accordance with 19 CFR 351.214(j)(3), Nanjing
Gemsen agreed to waive the applicable time limits for conducting the
new-shipper review and consented to the alignment of the new-shipper
review with the concurrent administrative review. See letter from
Nanjing Gemsen dated March 29, 2010.
On March 25, 2010, the petitioner submitted certain surrogate-value
information. On April 23, 2010, we received comments from Jinjiang on
the selection of surrogate values. On April 30, 2010, we received
rebuttal comments from the petitioner concerning the surrogate- value
information submitted by Jinjiang. On May 5, 2010, we received comments
from Xiping Opeck and Nanjing Gemsen on the selection of surrogate
values. On May 21, 2010, we received additional comments from Jinjiang.
We are conducting these reviews in accordance with section 751 of
the Tariff Act of 1930, as amended (the Act).
Scope of the Order
The product covered by the antidumping duty order is freshwater
crawfish tail meat, in all its forms (whether washed or with fat on,
whether purged or unpurged), grades, and sizes; whether frozen, fresh,
or chilled; and regardless of how it is packed, preserved, or prepared.
Excluded from the scope of the order are live crawfish and other whole
crawfish, whether boiled, frozen, fresh, or chilled. Also excluded are
saltwater crawfish of any type and parts thereof. Freshwater crawfish
tail meat is currently classifiable in the Harmonized Tariff Schedule
of the United States (HTSUS) under item numbers 1605.40.10.10 and
1605.40.10.90, which are the HTSUS numbers for prepared foodstuffs,
indicating peeled crawfish tail meat and other, as introduced by U.S.
Customs and Border Protection (CBP) in 2000, and HTSUS numbers
0306.19.00.10 and 0306.29.00.00, which are reserved for fish and
crustaceans in general. The HTSUS subheadings are provided for
convenience and customs purposes only. The written description of the
scope of the order is dispositive.
Bona-Fides Analysis
Consistent with our practice, we analyzed whether the U.S.
transactions reported by Nanjing Gemsen during the POR were bona-fide
sales. We examined the prices and quantities of the U.S. sales and
other relevant factors. Based on our analysis, we preliminarily
determine that Nanjing Gemsen's sales constitute bona-fide
transactions. For our complete analysis, see the Memorandum from Bryan
Hansen to the File entitled ``New-Shipper Review of Freshwater Crawfish
Tail Meat from the People's Republic of China--Bona-Fides Sales
Analysis of Nanjing Gemsen International Co., Ltd.,'' dated June 9,
2010, on file in room 1117 of the main Department of Commerce building.
We preliminarily determine that Nanjing Gemsen has met the
requirements to qualify as a new shipper during the POR based on the
following findings: (1) Nanjing Gemsen's sales are bona fide; (2)
Nanjing Gemsen is eligible for a separate rate (see the ``Separate
Rates'' section below); (3) Nanjing Gemsen is not affiliated with any
exporter or producer that had shipped subject merchandise previously to
the United States; (4) Henan Baoshu Aquatic Products Co. Ltd. (Henan
Baoshu), the producer of the subject merchandise, did not export the
subject merchandise to the United States during the period of
investigation. Therefore, for these preliminary results of review, we
are treating the sales of subject merchandise produced by Henan Baoshu
and exported to the United States by Nanjing Gemsen during the POR to
be appropriate transactions for this review.
Verification
On October 30, 2009, the petitioner requested a verification of the
data submitted by all of the firms for which the Department initiated
an administrative review. Due to our resource constraints in conducting
these reviews, we selected Xiping Opeck and Nanjing Gemsen for
verification, pursuant to section 782(i)(2) of the Act and 19 CFR
351.307. We used standard verification procedures, including on-site
inspection of the manufacturers' and exporters' facilities, and
examination of relevant sales and financial records. Our verification
[[Page 34102]]
results are outlined in the verification report for each company.
Non-Market-Economy Country Status
The Department considers the PRC to be a non-market-economy (NME)
country. In accordance with section 771(18)(C)(i) of the Act, any
determination that a country is an NME country shall remain in effect
until revoked by the administering authority. See Brake Rotors from the
People's Republic of China: Preliminary Results and Partial Rescission
of the 2004/2005 Administrative Review and Preliminary Notice of Intent
To Rescind the 2004/2005 New Shipper Review, 71 FR 26736 (May 8, 2006)
(unchanged in Brake Rotors from the People's Republic of China: Final
Results and Partial Rescission of the 2004/2005 Administrative Review
and Notice of Rescission of 2004/2005 New Shipper Review, 71 FR 66304
(November 14, 2006)). None of the parties to this proceeding has
contested NME treatment for the PRC. Therefore, for these preliminary
results of administrative and new-shipper reviews we have treated the
PRC as an NME country and applied our current NME methodology in
accordance with section 773(c) of the Act.
In antidumping proceedings involving NME countries, pursuant to
section 773(c)(1) of the Act, the Department generally bases normal
value on the value of the NME producer's factors of production (FOP).
In accordance with section 773(c)(4) of the Act, in valuing the FOP the
Department uses, to the extent possible, the prices or costs of the FOP
in one or more market-economy countries that are at a level of economic
development comparable to that of the NME country which are significant
producers of merchandise comparable to the subject merchandise.
The Department has determined that India, Indonesia, the
Philippines, Peru, Ukraine, and Thailand are countries that are at a
level of economic development comparable to that of the PRC.\1\ While
none of these countries is a significant producer of freshwater
crawfish tail meat,\2\ India has a seafood-processing industry that is
comparable to the crawfish industry with respect to factory overhead,
selling, general, and administrative (SG&A) expenses, and profit.\3\
Therefore, we have selected India as the primary surrogate country in
which to value all inputs with the exception of live crawfish, the
primary input, and the by-product, crawfish-shell scrap.
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\1\ See Memorandum entitled``Request for a List of Surrogate
Countries for an Administrative Review of the Antidumping Duty Order
on Freshwater Crawfish Tail Meat (`FCTM') from the People's Republic
of China (`PRC')'' dated February 16, 2010.
\2\ See Memorandum entitled ``Freshwater Crawfish Tail Meat from
the People's Republic of China: Selection of a Surrogate Country,''
dated June 9, 2010 (Surrogate-Country Memorandum).
\3\ See id.
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Because India does not have a fresh-crawfish industry (although it
has a sea-crawfish industry) and we have determined that other forms of
seafood are not sufficiently comparable to crawfish to serve as
surrogates for live crawfish, we have valued live crawfish using the
data submitted by the petitioner which was obtained from the same
source that was used to value live crawfish in several previous
segments of this proceeding.\4\ The petitioner submitted data on
imports of live crawfish from Portugal into Spain as reported by
Agencia Tributaria, the Spanish government agency responsible for trade
statistics. Spain is a significant producer of comparable merchandise,
i.e., whole processed crawfish,\5\ and there are publicly available
import statistics for Spain that are contemporaneous with the POR.
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\4\ See the March 25, 2010, submission by the petitioner
entitled ``Freshwater Crawfish Tail Meat from the People's Republic
of China: Whole Crawfish Surrogate Values.'' For an example of a
previous segment of the proceeding where this source was used, see
Freshwater Crawfish Tail Meat from the People's Republic of China:
Preliminary Results of Antidumping Duty Administrative Review and
Intent to Rescind Review in Part, 74 FR 27109 (June 8, 2009)
(unchanged in Freshwater Crawfish Tail Meat from the People's
Republic of China: Final Results of Antidumping Duty Administrative
Review and Rescission of Review in Part, 74 FR 52180 (October 9,
2009)).
\5\ See Surrogate-Country Memorandum.
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We have selected Indonesia as a secondary surrogate country for
purposes of valuing the crawfish shell by-product because there are no
appropriate Indian surrogate values for crawfish shell by-product on
the records of these reviews. We find that Indonesia is appropriate to
use for the following reasons: (a) It is at a level of economic
development comparable to the PRC; (b) it produces wet crab and shrimp
shells, which are merchandise comparable to the shell by-product; (c)
it has publicly available data, i.e., a public price quote from an
Indonesian company that has been used in prior segments of this
proceeding.\6\
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\6\ See Memorandum entitled ``Surrogate Valuation of Shell
Scrap: Freshwater Crawfish Tail Meat from the People's Republic of
China, Administrative Review 9/1/00-8/31/01 and New Shipper Reviews
9/1/00-8/31/01 and 9/1/00-10/15/01'' dated August 5, 2002, which has
been placed on the records of these reviews.
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Separate Rates
In proceedings involving NME countries, the Department has a
rebuttable presumption that all companies within the country are
subject to government control and thus should be assessed a single
antidumping duty rate. It is the Department's policy to assign all
exporters of merchandise subject to a proceeding involving an NME
country this single rate unless an exporter can demonstrate that it is
sufficiently independent so as to be entitled to a separate rate. The
Department assigns separate rates in NME proceedings only if
respondents can demonstrate the absence of both de jure and de facto
government control over export activities under a test developed by the
Department and described in Final Determination of Sales at Less Than
Fair Value: Sparklers from the People's Republic of China, 56 FR 20588
(May 6, 1991) (Sparklers), and Notice of Final Determination of Sales
at Less Than Fair Value: Silicon Carbide from the People's Republic of
China, 59 FR 22585 (May 2, 1994) (Silicon Carbide).
Absence of De Jure Control
The Department considers the following de jure criteria in
determining whether an individual company may be granted a separate
rate: (1) An absence of restrictive stipulations associated with an
individual exporter's business and export licenses; (2) any legislative
enactments decentralizing control of companies; (3) any other formal
measures by the government decentralizing control of companies. See
Sparklers, 56 FR at 20589.
In their questionnaire responses, Xiping Opeck, Shanghai Ocean
Flavor, China Kingdom, Jinjiang, and Nanjing Gemsen stated that they
are independent legal entities and placed evidence on the records of
the reviews indicating that the government of the PRC does not have de
jure control over their export activities. Xiping Opeck, Shanghai Ocean
Flavor, China Kingdom, Jinjiang, and Nanjing Gemsen submitted evidence
of their legal right to set prices independent of all governmental
oversight. Furthermore, the business licenses of these five companies
indicate that they are permitted to engage in the exportation of
freshwater crawfish tail meat. We also found no evidence of de jure
government control restricting Xiping Opeck, Shanghai Ocean Flavor,
China Kingdom, Jinjiang, and Nanjing Gemsen's exportation of freshwater
crawfish tail meat. In their responses, Xiping Opeck, Shanghai Ocean
Flavor, China Kingdom, Jinjiang, and Nanjing Gemsen stated that no
export quotas apply to crawfish. Prior verifications have confirmed
that there are no
[[Page 34103]]
commodity-specific export licenses required and no quotas for the
seafood category ``Other,'' which includes crawfish, in China's Tariff
and Non-Tariff Handbook for 1996 and 1997. See Freshwater Crawfish Tail
Meat from The People's Republic of China; Preliminary Results of New
Shipper Review, 64 FR 8543 (February 22, 1999) (1999 Crawfish NSR
Preliminary Results) (unchanged in Freshwater Crawfish Tail Meat from
the People's Republic of China; Final Results of New Shipper Review, 64
FR 27961 (May 24, 1999)).
In addition, we have confirmed previously that freshwater crawfish
tail meat is not on the list of commodities with planned quotas in the
1992 PRC Ministry of Foreign Trade and Economic Cooperation document
entitled Temporary Provisions for Administration of Export Commodities.
See 1999 Crawfish NSR Preliminary Results, 64 FR at 8544.
Xiping Opeck, Shanghai Ocean Flavor, China Kingdom, Jinjiang, and
Nanjing Gemsen placed on the records of these reviews the Company Law
of the People's Republic of China. The Department has found previously
that the Company Law of the People's Republic of China, made effective
on July 1, 1994, with the amended version promulgated on August 28,
2004, states that a company is an enterprise legal person, that
shareholders shall assume liability towards the company to the extent
of their shareholdings, and that the company shall be liable for its
debts to the extent of all its assets. See Freshwater Crawfish Tail
Meat from the People's Republic of China: Preliminary Results and
Partial Rescission of the 2005-2006 Antidumping Duty Administrative
Review and Preliminary Intent to Rescind 2005-2006 New Shipper Reviews,
72 FR 57288 (October 9, 2007) (unchanged in Freshwater Crawfish Tail
Meat from the People's Republic of China: Final Results and Partial
Rescission of the 2005-2006 Antidumping Duty Administrative Review and
Rescission of 2005-2006 New Shipper Reviews, 73 FR 20249 (April 15,
2008)).
Additionally, the Foreign Trade Law of the People's Republic of
China also indicates a lack of de jure government control.
Specifically, this document identifies the rights and responsibilities
of organizations engaging in foreign trade, grants autonomy to foreign-
trade operators in management decisions, and establishes the foreign-
trade operator's accountability for profits and losses. Xiping Opeck,
Shanghai Ocean Flavor, China Kingdom, Jinjiang, and Nanjing Gemsen also
provided copies of their business licenses stating their right to
conduct business within the scope of their licenses. Based on the
foregoing, the Department has preliminarily determined that there is an
absence of de jure governmental control over the export activities of
Xiping Opeck, Shanghai Ocean Flavor, China Kingdom, Jinjiang, and
Nanjing Gemsen.
Absence of De Facto Control
Typically the Department considers the following four factors in
evaluating whether each respondent is subject to de facto governmental
control of its export functions: (1) Whether the export prices are set
by, or are subject to the approval of, a governmental agency; (2)
whether the respondent has authority to negotiate and sign contracts
and other agreements; (3) whether the respondent has autonomy from the
government in making decisions regarding the selection of management;
(4) whether the respondent retains the proceeds of its export sales and
makes independent decisions regarding disposition of profits or
financing of losses. See Notice of Final Determination of Sales at Less
Than Fair Value: Furfuryl Alcohol from the People's Republic of China,
60 FR 22544, 22545 (May 8, 1995); see also Silicon Carbide, 59 FR at
22586-87. The Department considers an analysis of de facto control to
be critical in determining whether a respondent is, in fact, subject to
a degree of governmental control that would preclude the Department
from assigning the respondent a separate rate.
Xiping Opeck, Shanghai Ocean Flavor, China Kingdom, Jinjiang, and
Nanjing Gemsen have each asserted the following: (1) Each establishes
its own export prices through direct negotiations with its customers;
(2) each negotiates contracts not subject to review or guidance from
any governmental entities or organizations; (3) the shareholders of
each elect managers and make personnel decisions independent of the PRC
government's approval or review; (4) each is not required to sell any
portion of the foreign currency it earns to the government, each
retains the proceeds of its export sales, and each uses profits
according to its business needs. Moreover, the Department verified that
Xiping Opeck and Nanjing Gemsen are free of de facto government
control.
Based upon the information on the record of these reviews, the
Department has preliminarily determined that there is an absence of de
facto governmental control over the export activities of Xiping Opeck,
Shanghai Ocean Flavor, China Kingdom, Jinjiang, and Nanjing Gemsen.
Given that the Department has found that Xiping Opeck, Shanghai Ocean
Flavor, China Kingdom, Jinjiang, and Nanjing Gemsen operate free of de
jure and de facto governmental control, it has preliminarily determined
that Xiping Opeck, Shanghai Ocean Flavor, China Kingdom, Jinjiang, and
Nanjing Gemsen have satisfied the criteria for a separate rate.
U.S. Price
In accordance with section 772(a) of the Act, we based each
respondent's U.S. price on export price because the first sales to
unaffiliated purchasers were made prior to importation and constructed
export price was not otherwise warranted by the facts on the record. We
calculated export price based on packed Free on Board or Cost and
Freight price to the first unaffiliated purchaser in the United States,
as appropriate. In accordance with section 772(c) of the Act, we
calculated net export price by deducting foreign inland-freight
expenses, foreign brokerage and handling expenses, ocean-freight
expenses (where applicable), and cold-storage expenses (where
applicable) from the starting price (gross unit price) charged to the
first unaffiliated customer in the United States. We based all movement
expenses on surrogate values because a PRC company provided the
movement services for all respondents (see the ``Normal Value'' section
of this notice for further details).
Normal Value
Section 773(c)(1) of the Act provides that the Department shall
determine normal value using an FOP methodology if the merchandise is
exported from an NME country and the available information does not
permit the calculation of normal value using home-market prices, third-
country prices, or constructed value under section 773(a) of the Act.
The Department uses an FOP methodology because the presence of
government controls on various aspects of NMEs renders price
comparisons and the calculation of production costs invalid under its
normal methodologies. See Tapered Roller Bearings and Parts Thereof,
Finished or Unfinished, from the People's Republic of China:
Preliminary Results of Antidumping Duty Administrative Review and
Notice of Intent to Rescind in Part, 70 FR 39744, 39754 (July 11, 2005)
(unchanged in Tapered Roller Bearings and Parts Thereof, Finished and
Unfinished, from the People's Republic of China: Final Results of 2003-
2004 Administrative Review and Partial Rescission of Review, 71 FR 2517
(January 17, 2006)).
[[Page 34104]]
In accordance with section 773(c) of the Act, we relied on the FOP
data reported by the respondents for the POR.\7\ We calculated normal
value by adding together the value of the FOP, general expenses,
profit, and packing costs. Specifically, we valued material, labor,
energy, and packing by multiplying the reported per-unit rates for the
factors consumed in producing the subject merchandise by the average
per-unit surrogate value of the factor. In addition, we added freight
costs to the surrogate costs that we calculated for material inputs. We
calculated freight costs by multiplying surrogate freight rates by the
shorter of the reported distance from the domestic supplier to the
factory that produced the subject merchandise or the distance from the
nearest seaport to the factory that produced the subject merchandise,
as appropriate. This adjustment is in accordance with the decision by
the United States Court of Appeals for the Federal Circuit in Sigma
Corp. v. United States, 117 F.3d 1401, 1407-1408 (Fed. Cir. 1997). We
increased the calculated costs of the FOP for surrogate general
expenses and profit. See Memorandum to the File entitled ``Fresh
Crawfish Tail Meat from the People's Republic of China: Surrogate-Value
Memorandum,'' dated June 9, 2010 (Surrogate-Value Memo).
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\7\ We based the values of the FOPs on surrogate values (see
``Surrogate Values'' section below).
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Surrogate Values
In selecting surrogate values, we considered the quality,
specificity, and contemporaneity of the data. For these preliminary
results, in selecting the best available data for valuing FOPs in
accordance with section 773(c)(1) of the Act, we followed our practice
of choosing publicly available values which are non-export average
values, most contemporaneous with the POR, product-specific, and tax-
exclusive. See, e.g., Notice of Preliminary Determination of Sales at
Less Than Fair Value, Negative Preliminary Determination of Critical
Circumstances and Postponement of Final Determination: Certain Frozen
and Canned Warmwater Shrimp From the Socialist Republic of Vietnam, 69
FR 42672, 42682 (July 16, 2004) (unchanged in Final Determination of
Sales at Less Than Fair Value: Certain Frozen and Canned Warmwater
Shrimp From the Socialist Republic of Vietnam, 69 FR 71005 (December 8,
2004)). We also considered the quality of the source of surrogate
information in selecting surrogate values. See Notice of Final
Determination of Sales at Less Than Fair Value: Certain Cased Pencils
From the People's Republic of China, 59 FR 55625, 55633 (November 8,
1994). Where we could only obtain surrogate values that were not
contemporaneous with the POR, we inflated the surrogate values using,
where appropriate, the Indian Wholesale Price Index (Indian WPI) and
the Indonesian Wholesale Price Index (Indonesian WPI) as published in
the International Financial Statistics of the International Monetary
Fund. See Surrogate-Value Memo.
In calculating surrogate values from import statistics and in
accordance with our practice, we disregarded statistics for imports
from NME countries and countries deemed to maintain broadly available,
non-industry-specific subsidies which may benefit all exporters to all
export markets (i.e., Indonesia, the Republic of Korea, and Thailand).
See, e.g., Frontseating Service Valves from the People's Republic of
China: Preliminary Determination of Sales at Less Than Fair Value,
Preliminary Negative Determination of Critical Circumstances, and
Postponement of Final Determination, 73 FR 62952 (October 22, 2008)
(unchanged in Frontseating Service Valves from the People's Republic of
China: Final Determination of Sales at Less Than Fair Value and Final
Negative Determination of Critical Circumstances, 74 FR 10886 (March
13, 2009)). See, also, China National Machinery Import & Export
Corporation v. United States, 293 F. Supp. 2d 1334 (CIT 2003).
Additionally, we excluded from our calculations imports that were
labeled as originating from an unspecified country because we could not
determine whether they were from an NME country.
We used the following surrogate values in our margin calculations
for these preliminary results of review. We valued coal and packing
materials using September 2008-August 2009 weighted-average Indian
import values derived from the World Trade Atlas online (WTA). The
Indian import statistics that we obtained from the WTA were published
by the Directorate General of Commercial Intelligence & Statistics,
Ministry of Commerce of India, and are contemporaneous with the POR.
We valued whole live crawfish using the publicly available data for
Spanish imports of whole live crawfish from Portugal during the POR
submitted by the petitioner. We valued the crawfish shell by-product
using a 2001 price quote from Indonesia for wet crab and shrimp shells
and inflated this value using the Indonesian WPI to make it
contemporaneous with the POR.
We valued water using data from the Maharashtra Industrial
Development Corporation (http://www.midcindia.org) because this source
includes a wide range of industrial water tariffs. Specifically, this
source provides numerous industrial water rates within the Maharashtra
province for April 2009 (for the ``inside industrial areas'' usage
category and for the ``outside industrial areas'' usage category). We
excluded industrial areas where either no data were reported or a ``0''
was reported. We inflated the surrogate value for water using the
Indian WPI to make it contemporaneous with the POR.
To value electricity, we used March 2008 electricity price rates
from Electricity Tariff & Duty and Average Rates of Electricity Supply
in India, published by the Central Electricity Authority of the
Government of India. As the rates listed in this source became
effective on a variety of different dates, we are not adjusting the
average value for inflation.
We valued non-refrigerated truck-freight expenses using an average
of the per-unit average rates for September 2008, December 2008, March
2009, and June 2009 which we calculated from data at http://www.infobanc.com/logistics/logtruck.htm. The logistics section of this
Web site contains rates for inland-freight trucking between many large
Indian cities. We inflated (or deflated, depending on the month) the
per-unit average truck-freight rates for the selected months of the POR
using the Indian WPI to make it contemporaneous with the POR. We valued
refrigerated-truck freight expenses based on price quotations for April
2004 from CTC Freight Carriers of Delhi, India, placed originally on
the record of the antidumping investigation of certain frozen warmwater
shrimp from the PRC. We inflated this surrogate value using the Indian
WPI.
We valued brokerage and handling expenses using a price list of
export procedures necessary to export a standardized cargo of goods in
India. The price list is compiled based on a survey case study of the
procedural requirements for trading a standard shipment of goods by
ocean transport in India that is published in Doing Business 2009:
India, published by the World Bank. Because these data were current
throughout the POR, we did not inflate the value for brokerage and
handling. See Surrogate-Value Memo for further details.
We valued international freight using the data obtained from the
Descartes Carrier Rate Retrieval Database (Descartes), which is
available at http://descartes.com/. The Descartes database
[[Page 34105]]
is a Web-based service which publishes the ocean-freight rates of
numerous carriers. In prior administrative reviews the Department did
not use the Descartes database as an ocean-freight surrogate-value
source because the data did not appear to be publicly available. See,
e.g., Fresh Garlic from the People's Republic of China: Final Results
and Partial Rescission of Antidumping Duty Administrative Review and
Final Results of New Shipper Reviews, 71 FR 26329 (May 4, 2006), and
accompanying Issues and Decision Memorandum at Comment 7. Upon
reexamination, however, we have found that this database is accessible
to government agencies without charge in compliance with Federal
Maritime Commission regulations and, thus, we now find that this is a
publicly available source.
In addition to being publicly available, the Descartes data reflect
rates for multiple carriers, the Web site reports rates on a daily
basis, the price data are based on routes that correspond closely to
those used by the respondents, and they reflect merchandise similar to
subject merchandise. Therefore, the Descartes data are product-
specific, publicly available, a broad-market average, and
contemporaneous with the POR. Accordingly, we find that the Descartes
database is the best available source for valuing international freight
on the record of these reviews because it provides rates that are
representative of the entire POR and a broader representation of
product-specificity.
While we find that the Descartes database is the superior source on
the record of the reviews for valuing international freight, to make
the source less impractical, we had to define certain parameters in our
selection of data. For example, we calculated the period-average
international-freight rate by obtaining rates from multiple carriers
for a single day in each quarter of the POR. Further, we did not
include rates in the period-average international-freight calculation
that we determined were from NME carriers. Additionally, we excluded
from any individual rate calculation any charges that are covered by
the brokerage and handling expenses that the respondents incurred and
which are valued by the appropriate surrogate value. See Surrogate-
Value Memo for further details.
For Xiping Opeck, we valued cold storage using a rate published in
an article from Dawn Wire Service. Because data reported in this source
were not contemporaneous with the POR, we inflated the surrogate value
for cold storage using the Indian WPI. See Surrogate-Value Memo. This
source was used in Fresh Garlic from the People's Republic of China:
Preliminary Results of Antidumping Duty New Shipper Reviews, 69 FR
24123, 24126 (May 3, 2004) (unchanged in Fresh Garlic from the People's
Republic of China: Final Results of Antidumping Duty New Shipper
Reviews, 69 FR 46498 (August 3, 2004)). When the product is fully
processed and packed and then placed into a cold-storage facility not
located at the production/processing facility prior to the date of
shipment from the exporting country, our practice is to treat cold
storage as a movement expense and deduct it from the U.S. price. See,
e.g., Fresh Garlic from the People's Republic of China: Final Results
of Antidumping Duty New Shipper Reviews, 69 FR 46498, 46500 (August 3,
2004).
The Department's regulations require the use of a regression-based
wage rate. See 19 CFR 351.408(c)(3). Therefore, to value labor, we used
the regression-based wage rate for the PRC published on the Import
Administration (IA) Web site. See the IA Web site at http://ia.ita.doc.gov/wages/07wages/final/final-2009-2007-wages.html. See also
2009 Calculation of Expected Non-Market Economy Wages, 74 FR 65092
(December 9, 2009). We applied the same wage rate to all skill levels
and types of labor (i.e., direct production, indirect, packing)
reported by the respondents because this regression-based wage rate
does not separate the labor rates into different skill levels or types
of labor. See Surrogate-Value Memo for further details.
We valued SG&A, factory-overhead costs, and profit using the 2007-
2008 financial statements of Nekkanti Sea Foods Ltd., an Indian seafood
processor. See Surrogate-Value Memo.
Currency Conversion
We made currency conversions into U.S. dollars in accordance with
section 773A(a) of the Act, based on the exchange rates in effect on
the dates of the U.S. sales as certified by the Federal Reserve Bank.
These exchange rates are available on the IA Web site at http://ia.ita.doc.gov/exchange/index.html.
Preliminary Results of the Reviews
As a result of the administrative review, we preliminarily
determine that the following weighted-average percentage dumping
margins exist for the period September 1, 2008, through August 31,
2009:
------------------------------------------------------------------------
Margin
Company (percent)
------------------------------------------------------------------------
Xiping Opeck Food Co., Ltd.................................. 11.46
Shanghai Ocean Flavor International Trading Co., Ltd........ 41.95
China Kingdom (Beijing) Import & Export Co., Ltd............ 18.90
Xuzhou Jinjiang Foodstuffs Co., Ltd......................... 5.44
------------------------------------------------------------------------
As a result of the new-shipper review, we preliminarily determine
that a weighted-average dumping margin of 12.42 percent exists for
merchandise produced by Henan Baoshu Aquatic Products Co., Ltd., and
exported by Nanjing Gemsen International Co., Ltd., for the period
September 1, 2008, through August 31, 2009.
Comments
We will disclose the calculations used in our analysis to
interested parties in these reviews within five days of the date of
publication of this notice in accordance with 19 CFR 351.224(b).
Interested parties may submit publicly available information to value
factors no later than 20 days after the date of publication of these
preliminary results of reviews. See 19 CFR 351.301(c)(3)(ii). Any
interested party may request a hearing within 30 days of the date of
publication of this notice. See 19 CFR 351.310. Interested parties who
wish to request a hearing or to participate in a hearing if one is
requested must submit a written request to the Assistant Secretary for
Import Administration within 30 days of the date of publication of this
notice. Requests should contain the following: (1) The party's name,
address, and telephone number; (2) the number of participants; (3) a
list of issues to be discussed. See 19 CFR 351.310(c).
Issues raised in the hearing will be limited to those raised in the
case briefs. See 19 CFR 351.310(c). Case briefs from interested parties
may be submitted not later than 30 days after the date of publication
of this notice of preliminary results of reviews. See 19 CFR
351.309(c)(1)(ii). Rebuttal briefs from interested parties, limited to
the issues raised in the case briefs, may be submitted not later than
five days after the time limit for filing the case briefs or comments.
See 19 CFR 351.309(d)(1). If requested, any hearing will be held two
days after the scheduled date for submission of rebuttal briefs. See 19
CFR 351.310(d). Parties who submit case briefs or rebuttal briefs in
these segments of the proceeding are requested to submit with each
argument a statement of the issue, a summary of the arguments not
exceeding five pages,
[[Page 34106]]
and a table of statutes, regulations, and cases cited. See 19 CFR
351.309(c)(2).
The Department will issue the final results of these reviews,
including the results of its analysis of issues raised by parties in
their comments, within 120 days after the date of publication of this
notice. See section 751(a)(3)(A) of the Act.
Assessment Rates
The Department shall determine, and CBP shall assess, antidumping
duties on all appropriate entries. In accordance with 19 CFR
351.212(b)(1), we have calculated importer-specific (or customer-
specific) assessment rates for merchandise subject to these reviews.
For these preliminary results, we divided the total dumping margins
(calculated as the difference between normal value and export price)
for each of the respondents' importers or customers by the total number
of kilograms the exporter sold to that importer or customer. We will
direct CBP to assess the resulting per-kilogram dollar amount against
each kilogram of merchandise in each of that importer's/customer's
entries during the review period.
We intend to issue assessment instructions to CBP 15 days after the
date of publication of the final results of reviews.
Cash-Deposit Requirements
The following cash-deposit requirements will be effective upon
publication of the final results of these reviews for all shipments of
the subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the publication date as provided by section
751(a)(2)(C) of the Act: (1) For subject merchandise exported by Xiping
Opeck, Shanghai Ocean Flavor, China Kingdom, and Jinjiang, and for
subject merchandise produced by Henan Baoshu and exported by Nanjing
Gemsen, the cash-deposit rate will be that established in the final
results of reviews; \8\ (2) for previously reviewed or investigated
companies not listed above that have separate rates, the cash-deposit
rate will continue to be the company-specific rate published for the
most recent period; (3) for all other PRC exporters of subject
merchandise which have not been found to be entitled to a separate
rate, the cash-deposit rate will be PRC-wide rate of 223.01 percent;
(4) for all non-PRC exporters of subject merchandise the cash-deposit
rate will be the rate applicable to the PRC entity that supplied that
exporter. These deposit requirements, when imposed, shall remain in
effect until further notice.
---------------------------------------------------------------------------
\8\ For subject merchandise exported by Nanjing Gemsen but not
produced by Henan Baoshu, the cash-deposit rate will be the PRC-wide
rate.
---------------------------------------------------------------------------
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
These reviews and this notice are in accordance with sections
751(a)(1), 751(a)(2)(B)(iv), 751(a)(3), and 777(i) of the Act and 19
CFR 351.214.
Dated: June 9, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-14534 Filed 6-15-10; 8:45 am]
BILLING CODE 3510-DS-P