[Federal Register Volume 76, Number 71 (Wednesday, April 13, 2011)]
[Notices]
[Pages 20627-20633]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-8892]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-552-802]
Certain Frozen Warmwater Shrimp From the Socialist Republic of
Vietnam: Preliminary Results of Antidumping Duty New Shipper Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On February 1, 2005, the Department of Commerce
(``Department'') published in the Federal Register the antidumping duty
order on
[[Page 20628]]
certain frozen warmwater shrimp (``shrimp'') from the Socialist
Republic of Vietnam (``Vietnam'').\1\ The Department is conducting a
new shipper review (``NSR'') of the Order, covering the period of
review (``POR'') of February 1, 2010, through July 31, 2010. If these
preliminary results are adopted in our final results of review, we will
instruct U.S. Customs and Border Protection (``CBP'') to assess
antidumping duties on entries of subject merchandise during the POR for
which the importer-specific assessment rates are above de minimis.
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\1\ See Notice of Amended Final Determination of Sales at Less
Than Fair Value and Antidumping Duty Order: Certain Frozen Warmwater
Shrimp From the Socialist Republic of Vietnam, 70 FR 5152 (February
1, 2005) (``Order'').
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DATES: Effective Date: April 13, 2011.
FOR FURTHER INFORMATION CONTACT: Paul Walker, AD/CVD Operations, Office
9, Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue, NW.,
Washington DC 20230; telephone: (202) 482-0413.
SUPPLEMENTARY INFORMATION:
Background
On August 26, 2010, pursuant to section 751(a)(2)(B)(i) of the
Tariff Act of 1930, as amended (the ``Act''), and section 351.214(c) of
the Department's regulations, the Department received a NSR request
from Quoc Viet Seaproducts Processing Trading and Import-Export Co.,
Ltd. (``Quoc Viet''). Quoc Viet certified that it was the producer and
exporter of the subject merchandise upon which the request was based.
On October 1, 2010, the Department published a notice of initiation of
the NSR of the Order for Quoc Viet.\2\ On September 28, 2010, the
Department issued its original antidumping duty questionnaire to Quoc
Viet. Between October 22, 2010, and February 3, 2011, Quoc Viet
submitted responses to the original and supplemental sections A, C, D
and Importer antidumping duty questionnaires.
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\2\ See Certain Frozen Warmwater Shrimp From the Socialist
Republic of Vietnam: Initiation of Antidumping Duty New Shipper
Review, 75 FR 60730 (October 1, 2010).
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On January 4, 2011, the Department sent interested parties a letter
requesting comments on surrogate country selection and information
pertaining to valuing factors of production (``FOP''). On January 31,
2011, Quoc Viet submitted surrogate country comments and surrogate
value (``SV'') data.\3\
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\3\ See Quoc Viet's January 31, 2011 submission.
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On March 23, 2011, the Department extended the deadline for the
preliminary results of this review to April 14, 2011.\4\
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\4\ See Certain Frozen Warmwater Shrimp From the Socialist
Republic of Vietnam: Extension of Preliminary Results of Antidumping
Duty New Shipper Review, 76 FR 16384 (March 23, 2011).
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Scope of the Order
The scope of the order includes certain frozen warmwater shrimp and
prawns, whether wild-caught (ocean harvested) or farm-raised (produced
by aquaculture), head-on or head-off, shell-on or peeled, tail-on or
tail-off,\5\ deveined or not deveined, cooked or raw, or otherwise
processed in frozen form.
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\5\ ``Tails'' in this context means the tail fan, which includes
the telson and the uropods.
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The frozen warmwater shrimp and prawn products included in the
scope of the order, regardless of definitions in the Harmonized Tariff
Schedule of the United States (``HTSUS''), are products which are
processed from warmwater shrimp and prawns through freezing and which
are sold in any count size.
The products described above may be processed from any species of
warmwater shrimp and prawns. Warmwater shrimp and prawns are generally
classified in, but are not limited to, the Penaeidae family. Some
examples of the farmed and wild-caught warmwater species include, but
are not limited to, white leg shrimp (Penaeus vannemei), banana prawn
(Penaeus merguiensis), fleshy prawn (Penaeus chinensis), giant river
prawn (Macrobrachium rosenbergii), giant tiger prawn (Penaeus monodon),
redspotted shrimp (Penaeus brasiliensis), southern brown shrimp
(Penaeus subtilis), southern pink shrimp (Penaeus notialis), southern
rough shrimp (Trachypenaeus curvirostris), southern white shrimp
(Penaeus schmitti), blue shrimp (Penaeus stylirostris), western white
shrimp (Penaeus occidentalis) and Indian white prawn (Penaeus indicus).
Frozen shrimp and prawns that are packed with marinade, spices or
sauce are included in the scope of the order. In addition, food
preparations, which are not ``prepared meals,'' that contain more than
20 percent by weight of shrimp or prawn are also included in the scope
of the order.
Excluded from the scope are: (1) Breaded shrimp and prawns (HTS
subheading 1605.20.1020); (2) shrimp and prawns generally classified in
the Pandalidae family and commonly referred to as coldwater shrimp, in
any state of processing; (3) fresh shrimp and prawns whether shell-on
or peeled (HTS subheadings 0306.23.0020 and 0306.23.0040); (4) shrimp
and prawns in prepared meals (HTS subheading 1605.20.0510); (5) dried
shrimp and prawns; (6) canned warmwater shrimp and prawns (HTS
subheading 1605.20.1040); (7) certain dusted shrimp; and (8) certain
battered shrimp. Dusted shrimp is a shrimp-based product: (1) That is
produced from fresh (or thawed-from-frozen) and peeled shrimp; (2) to
which a ``dusting'' layer of rice or wheat flour of at least 95 percent
purity has been applied; (3) with the entire surface of the shrimp
flesh thoroughly and evenly coated with the flour; (4) with the non-
shrimp content of the end product constituting between four and 10
percent of the product's total weight after being dusted, but prior to
being frozen; and (5) that is subjected to IQF freezing immediately
after application of the dusting layer. Battered shrimp is a shrimp-
based product that, when dusted in accordance with the definition of
dusting above, is coated with a wet viscous layer containing egg and/or
milk, and par-fried.
The products covered by the order are currently classified under
the following HTSUS subheadings: 0306.13.0003, 0306.13.0006,
0306.13.0009, 0306.13.0012, 0306.13.0015, 0306.13.0018, 0306.13.0021,
0306.13.0024, 0306.13.0027, 0306.13.0040, 1605.20.1010 and
1605.20.1030. These HTSUS subheadings are provided for convenience and
for customs purposes only and are not dispositive, but rather the
written description of the scope of the order is dispositive.
Non-Market Economy Country Status
In every case conducted by the Department involving Vietnam,
Vietnam has been treated as a non-market (``NME'') country. In
accordance with section 771(18)(C)(i) of the Act, any determination
that a foreign country is an NME country shall remain in effect until
revoked by the administering authority.\6\ None of the parties to this
proceeding have contested such treatment. Accordingly, we calculated
normal value (``NV'') in accordance with section 773(c) of the Act,
which applies to NME countries.
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\6\ See Certain Frozen Fish Fillets From the Socialist Republic
of Vietnam: Final Results of the Antidumping Duty Administrative
Review and New Shipper Reviews, 74 FR 11349 (March 17, 2009).
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Separate Rate Determination
In proceedings involving NME countries, there is 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
[[Page 20629]]
Department's standard policy to assign all exporters of the merchandise
subject to review in NME countries a single rate unless an exporter can
affirmatively demonstrate an absence of government control, both in law
(de jure) and in fact (de facto), with respect to exports. To establish
whether a company is sufficiently independent to be entitled to a
separate, company-specific rate, the Department analyzes each exporting
entity in an NME country under the test established in the Final
Determination of Sales at Less than Fair Value: Sparklers from the
People's Republic of China, 56 FR 20588 (May 6, 1991) (``Sparklers''),
as amplified by the 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'').
A. 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; and (2) any
legislative enactments decentralizing control of companies.
In this NSR, Quoc Viet submitted complete responses to the separate
rate section of the Department's NME questionnaire. The evidence
submitted by Quoc Viet includes government laws and regulations on
corporate ownership, business licenses, and narrative information
regarding its operations and selection of management. The evidence
provided by Quoc Viet supports a finding of a de jure absence of
government control over each of its export activities. Thus, we believe
that the evidence on the record supports a preliminary finding of an
absence of de jure government control based on: (1) An absence of
restrictive stipulations associated with the exporter's business
license; and (2) the legal authority on the record decentralizing
control over Quoc Viet.
B. Absence of De Facto Control
The absence of de facto government control over exports is based on
whether the respondent: (1) Sets its own export prices independent of
the government and other exporters; (2) retains the proceeds from its
export sales and makes independent decisions regarding the disposition
of profits or financing of losses; (3) has the authority to negotiate
and sign contracts and other agreements; and (4) has autonomy from the
government regarding the selection of management.\7\
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\7\ See Silicon Carbide, 59 FR at 22587; Sparklers, 56 FR at
20589; see also 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).
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In its questionnaire responses, Quoc Viet submitted evidence
indicating an absence of de facto government control over its export
activities. Specifically, this evidence indicates that: (1) Quoc Viet
sets its own export prices independent of the government and without
the approval of a government authority; (2) Quoc Viet retains the
proceeds from its sales and makes independent decisions regarding the
disposition of profits or financing of losses; (3) Quoc Viet has a
general manager, branch manager or division manager with the authority
to negotiate and bind the company in an agreement; (4) the general
manager is selected by the board of directors or company employees, and
the general manager appoints the deputy managers and the manager of
each department; and (5) there is no restriction on any of either
company's use of export revenues. Therefore, the Department
preliminarily finds that Quoc Viet has established prima facie that it
qualifies for a separate rate under the criteria established by Silicon
Carbide and Sparklers.
New Shipper Review Bona Fide Analysis
Consistent with the Department's practice, we investigated the bona
fide nature of the sale made by Quoc Viet in this NSR. We found that
the sale by Quoc Viet was made on a bona fide basis.\8\ Based on our
investigation into the bona fide nature of the sale, the questionnaire
responses submitted by Quoc Viet, and the company's eligibility for
separate rates (see Separate Rate Determination section above), we
preliminarily determine that Quoc Viet has met the requirement to
qualify as a new shipper during this POR. Therefore, for the purposes
of these preliminary results, we are treating Quoc Viet's sale of
subject merchandise to the United States as an appropriate transaction
for this NSR.
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\8\ For more detailed discussion of this issue, see Memorandum
to the File, through Scot T. Fullerton, Program Manager, Office IX,
from Paul Walker, Case Analyst, ``Bona Fide Nature of the Sale in
the Antidumping Duty New Shipper Review of Certain Warmwater Shrimp
from the Socialist Republic of Vietnam: Quoc Viet Seaproducts
Processing Trading and Import-Export Co., Ltd.,'' dated concurrently
with this notice.
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Surrogate Country
When the Department conducts a review of imports from an NME
country, section 773(c)(1) of the Act directs it to base NV, in most
circumstances, on the NME producer's FOPs, valued in a surrogate market
economy (``ME'') country or countries considered to be appropriate by
the Department. In accordance with section 773(c)(4) of the Act, in
valuing the FOPs, the Department shall utilize, to the extent possible,
the prices or costs of FOPs in one or more ME countries that are: (1)
at a level of economic development comparable to that of the NME
country; and (2) significant producers of comparable merchandise.
Further, pursuant to section 351.408(c)(2) of the Department's
regulations, the Department will normally value FOPs in a single
country, except for labor. The sources of the surrogate factor values
are discussed under the ``Normal Value'' section below.\9\
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\9\ See also Memorandum to the File, through Scot T. Fullerton,
Program Manager, Office IX, ``Fourth New Shipper Review of Frozen
Warmwater Shrimp from Vietnam: Surrogate Values for the Preliminary
Results,'' dated concurrently with this notice (``SV Memo'').
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As noted above, on January 4, 2011, the Department sent interested
parties a letter requesting comments on surrogate country selection and
information pertaining to valuing FOPs. On January 31, 2011, the
Department received comments from Quoc Viet suggesting that the
Department select Bangladesh as the surrogate country, as well as
Bangladeshi SV data.\10\
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\10\ See Quoc Viet's January 31, 2011 submission.
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Pursuant to its practice, the Department received a list of
potential surrogate countries from Import Administration's Office of
Policy (``OP'').\11\ The OP determined that Bangladesh, Pakistan,
India, Sri Lanka, the Philippines and Indonesia were at a comparable
level of economic development to Vietnam.\12\ The Department considers
the six countries identified by the OP in its Surrogate Country List as
``equally comparable in terms of economic development.'' \13\ Thus, we
find that Bangladesh, Pakistan, India, Sri Lanka, the Philippines, and
Indonesia are all at an economic level of development equally
comparable to that of Vietnam. We note that the Surrogate Country List
is a non-exhaustive list of economically comparable countries.
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\11\ See Memorandum from Carole Showers, Director, Office of
Policy, to Scot T. Fullerton, Program Manager, AD/CVD Operations,
Office 9, ``Request for a List of Surrogate Countries for New
Shipper Review of the Antidumping Duty Order on Frozen Warmwater
Shrimp from the Socialist Republic of Vietnam,'' dated December 6,
2010 (``Surrogate Country List'').
\12\ Id.
\13\ Id.
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[[Page 20630]]
Quoc Viet submitted evidence that Bangladesh, Pakistan, India, Sri
Lanka, the Philippines and Indonesia are all significant producers of
comparable merchandise.\14\ However, while we find that these countries
are economically comparable to Vietnam and produce comparable
merchandise, we note that the record contains no publicly available SV
factor information for Pakistan, India, Sri Lanka, the Philippines or
Indonesia.
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\14\ See Quoc Viet's January 31, 2011 submission at Exhibit 1.
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With regard to Bangladesh, the record contains publicly available
surrogate factor value information. Given the above-cited facts, we
find that the information on the record shows that Bangladesh is an
appropriate surrogate country because Bangladesh is at a similar level
of economic development pursuant to section 773(c)(4) of the Act, is a
significant producer of comparable merchandise, and has reliable,
publicly available data for surrogate valuation purposes.
U.S. Price
For Quoc Viet's export price (``EP'') sale, we used the EP
methodology, pursuant to section 772(a) of the Act, because the first
sale to an unaffiliated purchaser was made prior to importation and
constructed export price was not otherwise warranted by the facts on
the record. We calculated EP based on cost and freight foreign port
price to the first unaffiliated purchaser in the United States. We also
deducted foreign inland freight, and foreign brokerage and handling
from the starting price (or gross unit price), in accordance with
section 772(c) of the Act. We reviewed the movement expenses incurred
in Vietnam by Quoc Viet and found that they were provided by an NME
vendor or paid for using Vietnamese currency. Thus, we based the
deduction of these movement charges on SVs.\15\
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\15\ See SV Memo for details regarding the SVs for movement
expenses.
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Normal Value
A. Methodology
Section 773(c)(1)(B) of the Act provides that the Department shall
determine the NV using an FOP methodology if the merchandise is
exported from an NME country and the information does not permit the
calculation of NV using home-market prices, third-country prices, or
constructed value under section 773(a) of the Act. The Department bases
NV on FOPs because the presence of government controls on various
aspects of NMEs renders price comparisons and the calculation of
production costs invalid under the Department's normal methodologies.
Section 773(c)(1) of the Act provides that the Department shall
determine the NV using an FOP methodology if: (1) the merchandise is
exported from an NME country; and (2) the information does not permit
the calculation of NV using home market prices, third country prices,
or constructed value under section 773(a) of the Act.
B. Factor Valuations \16\
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\16\ In accordance with section 351.301(c)(3)(ii) of the
Department's regulations, for the final results in an antidumping
NSR, interested parties may submit publicly available information to
value FOPs within 20 days after the date of publication of the
preliminary results.
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In accordance with section 773(c) of the Act, we calculated NV
based on FOPs reported by Quoc Viet for the POR. To calculate NV, we
multiplied the reported per-unit factor-consumption rates by publicly
available Bangladeshi SVs. In selecting SVs, we considered the quality,
specificity and contemporaneity of the data. As appropriate, we
adjusted input prices by including freight costs to make them delivered
prices. Specifically, we added to Bangladeshi import SVs a surrogate
freight cost using the shorter of the reported distance from the
domestic supplier to the factory of production, or the distance from
the nearest seaport to the factory of production, where appropriate.
This adjustment is in accordance with the Court of Appeals for the
Federal Circuit's (``CAFC'') decision in Sigma Corp. v. United States,
117 F.3d 1401, 1407-1408 (Fed. Cir. 1997). Where we did not use
Bangladeshi Import Statistics, we calculated freight based on the
reported distance from the supplier to the factory.
In accordance with the OTCA 1988 legislative history, the
Department continues to apply its long-standing practice of
disregarding SVs if it has a reason to believe or suspect the source
data may be subsidized.\17\ In this regard, the Department has
previously found that it is appropriate to disregard such prices from
India, Indonesia, South Korea and Thailand because we have determined
that these countries maintain broadly available, non-industry specific
export subsidies.\18\ Based on the existence of these subsidy programs
that were generally available to all exporters and producers in these
countries at the time of the POR, the Department finds that it is
reasonable to infer that all exporters from India, Indonesia, South
Korea and Thailand may have benefitted from these subsidies.
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\17\ See Omnibus Trade and Competitiveness Act of 1988, Conf.
Report to Accompany H.R. 3, H.R. Rep. No. 576, 100th Cong., 2nd
Sess. (1988) (``OTCA 1988'') at 590.
\18\ See, e.g., Carbazole Violet Pigment 23 from India: Final
Results of the Expedited Five-year (Sunset) Review of the
Countervailing Duty Order, 75 FR 13257 (March 19, 2010) and
accompanying Issues and Decision Memorandum at 4-5; Certain Cut-to-
Length Carbon-Quality Steel Plate from Indonesia: Final Results of
Expedited Sunset Review, 70 FR 45692 (August 8, 2005) and
accompanying Issues and Decision Memorandum at 4; see Corrosion-
Resistant Carbon Steel Flat Products from the Republic of Korea:
Final Results of Countervailing Duty Administrative Review, 74 FR
2512 (January 15, 2009) and accompanying Issues and Decision
Memorandum at 17, 19-20; see Final Affirmative Countervailing Duty
Determination: Certain Hot-Rolled Carbon Steel Flat Products from
Thailand, 66 FR 50410 (October 3, 2001) and accompanying Issues and
Decision Memorandum at 23.
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Additionally, we disregarded prices from NME countries.\19\
Finally, imports that were labeled as originating from an
``unspecified'' country were excluded from the average value, because
the Department could not be certain that they were not from either an
NME country or a country with general export subsidies.\20\ Lastly, the
Department has also excluded imports from Bangladesh into Bangladesh
because there is no evidence on the record regarding what these data
represent (e.g., re-importations, another category of unspecified
imports, or the result of an error in reporting). Thus, these data do
not represent the best available information upon which to rely for
valuation purposes.\21\
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\19\ See Tapered Roller Bearings and Parts Thereof, Finished and
Unfinished, from the People's Republic of China; Final Results of
1998-1999 Administrative Review, Partial Rescission of Review, and
Determination Not To Revoke Order in Part, 66 FR 1953 (January 10,
2001) and accompanying Issues and Decision Memorandum at Comment 1.
\20\ See Notice of Final Determination of Sales at Less Than
Fair Value and Negative Final Determination of Critical
Circumstances: Certain Color Television Receivers from the People's
Republic of China, 69 FR 20594 (April 16, 2004).
\21\ See Certain Frozen Warmwater Shrimp from the Socialist
Republic of Vietnam: Final Results and Partial Rescission of
Antidumping Duty Administrative Review, 75 FR 47771 (August 9, 2010)
and accompanying Issues and Decision Memorandum at Comment 6.
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Therefore, based on the information currently available, we have
not used prices from these countries either in calculating the
Bangladeshi import-based SVs or in calculating ME input values. In
instances where an ME input was obtained solely from suppliers located
in these countries, we used Bangladeshi import-based SVs to value the
input.
To value Quoc Viet's raw shrimp input, we used data for Bangladesh
from
[[Page 20631]]
a study conducted by the Network of Aquaculture Centres in Asia-Pacific
(``NACA''), an intergovernmental organization affiliated with the
United Nation's (``UN'') Food and Agricultural Organization (``FAO'').
The Department's practice when selecting the best available information
for valuing FOPs, in accordance with section 773(c)(1) of the Act, is
to select, to the extent practicable, SVs which are product-specific,
representative of a broad-market average, publicly available,
contemporaneous with the POR and exclusive of taxes and duties.\22\ The
Department notes that the value of the main input, head-on, shell-on
shrimp, is a critical FOP in the dumping calculation as it accounts for
a significant percentage of NV. Moreover, the ability to value shrimp
on a count-size basis is a significant consideration with respect to
the data available on the record, as the subject merchandise and the
raw shrimp input are both sold on a count-size specific basis. The
Bangladeshi shrimp values within the NACA study are compiled by the
UN's FAO from actual pricing records kept by Bangladeshi farmers,
traders, depots, agents, and processors. The Bangladeshi shrimp values
within the NACA study are publicly available, represent a broad-market
average, are product-specific, count-size-specific, contemporaneous and
represent actual transaction prices.\23\
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\22\ See Fresh Garlic from the People's Republic of China: Final
Results and Partial Rescission of the Eleventh Administrative Review
and New Shipper Reviews, 72 FR 34438 (June 22, 2007) and
accompanying Issues and Decision Memorandum at Comment 2A.
\23\ The calculation for shrimp and all other surrogate values
listed below may be found in the SV Memo.
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The Department used UN ComTrade Statistics, provided by the UN
Department of Economic and Social Affairs' Statistics Division, as its
primary source of Bangladeshi SV data to value the raw material and
packing material inputs that Quoc Viet used to produce the merchandise
under review during the POR, except where listed below.\24\ For a
detailed description of all SVs, see SV Memo. The data represents
cumulative values for the calendar year 2007, for inputs classified by
the Harmonized Commodity Description and Coding System number. As noted
above, for each input value, we used the average value per unit for
that input imported into Bangladesh from all countries that the
Department has not previously determined to be NME countries, countries
that the Department has determined to be countries which subsidized
exports (i.e., Indonesia, South Korea, Thailand, and India), imports
from unspecified countries and imports from Bangladesh into Bangladesh.
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\24\ This can be accessed online at: http://www.unstats.un.org/unsd/comtrade/.
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It is the Department's practice to calculate price index adjustors
to inflate or deflate, as appropriate, SVs that are not contemporaneous
with the POR using the wholesale price index (``WPI'') for the subject
country.\25\ However, in this case, a WPI was not available for
Bangladesh. Therefore, where publicly available information
contemporaneous with the POR with which to value factors could not be
obtained, SVs were adjusted using the Consumer Price Index (``CPI'')
rate for Bangladesh, or the WPI for India or Indonesia (for certain SVs
where Bangladeshi data could not be obtained), as published in the
International Financial Statistics of the International Monetary Fund.
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\25\ See Notice of Preliminary Determination of Sales at Less
Than Fair Value and Postponement of Final Determination: Hand Trucks
and Certain Parts Thereof from the People's Republic of China, 69 FR
29509 (May 24, 2004).
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Where necessary, the Department 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. We relied on the daily exchange rates
posted on the Import Administration Web site.\26\
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\26\ See http://www.trade.gov/ia/, see also SV Memo.
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On May 14, 2010, the CAFC in Dorbest Ltd. v. United States, 604
F.3d 1363, 1372 (CAFC 2010), found that the regression-based method for
calculating wage rates, as stipulated by section 351.408(c)(3) of the
Department's regulations, uses data not permitted by the statutory
requirements laid out in section 773 of the Act (i.e., 19 U.S.C.
1677b(c)). The Department is continuing to evaluate options for
determining labor values in light of the recent CAFC decision. However,
for these preliminary results, we have calculated an hourly wage rate
to use in valuing the respondent's reported labor input by averaging
industry-specific earnings and/or wages in countries that are
economically comparable to Vietnam and that are significant producers
of comparable merchandise.
For the preliminary results of this NSR, the Department is valuing
labor using a simple average industry-specific wage rate using earnings
or wage data reported under Chapter 5B by the International Labor
Organization (``ILO''). To achieve an industry-specific labor value, we
relied on industry-specific labor data from the countries we determined
to be both economically comparable to Vietnam, and significant
producers of comparable merchandise. A full description of the
industry-specific wage rate calculation methodology is provided in the
SV Memo. The Department calculated a simple average industry-specific
wage rate of $1.09 for these preliminary results. Specifically, for
this review, the Department has calculated the wage rate using a simple
average of the data provided to the ILO under Sub-Classification 15 of
the ISIC-Revision 3 standard by countries determined to be both
economically comparable to Vietnam and significant producers of
comparable merchandise. The Department finds the two-digit description
under ISIC-Revision 3 (``Manufacture of Food Products and Beverages'')
to be the best available wage rate SV on the record because it is
specific and derived from industries that produce merchandise
comparable to the subject merchandise. Consequently, we averaged the
ILO industry-specific wage rate data or earnings data available from
the following countries found to be economically comparable to Vietnam
and are significant producers of comparable merchandise: The
Philippines, Egypt and Indonesia. For further information on the
calculation of the wage rate, see SV Memo.
We valued electricity using data from the Bangladesh Ministry of
Power, Energy, & Mineral Resources. This information was published on
their Power Division's website. We valued water using 2007 data from
the Asian Development Bank. We inflated the value using the POR average
CPI rate. We valued diesel using data published by the World Bank in
``Bangladesh: Transport at a Glance,'' published in June 2006. We
inflated the value using the POR average CPI rate.
To value truck freight and motorcycle freight, we used data
published in 2008 Statistical Yearbook of Bangladesh published by the
Bangladesh Bureau of Statistics. We inflated the value using the POR
average CPI rate. We valued containerization using Indian information
previously available on the Import Administration Web site. We inflated
the value using the POR average WPI rate. We valued brokerage and
handling using a price list of export procedures necessary to export a
standardized cargo of goods in Bangladesh. 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
[[Page 20632]]
Doing Business 2011: Bangladesh, published by the World Bank.
We valued the by-product using shell scrap values using a surrogate
value for shrimp by-products based on a purchase price quote for wet
shrimp shells from an Indonesian buyer of crustacean shells. Although
we recognize that Quoc Viet reported by-products other than shells and
that this surrogate value is not from Bangladesh, the primary surrogate
country, this information represents the best information on the record
and has been used in past case segments.\27\ Moreover, we also note
that this is the only surrogate value on the record for by-products,
and as a consequence, is being used for these preliminary results. We
inflated the value using the POR average WPI rate.\28\
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\27\ See SV Memo which contains the following memorandum:
Memorandum to Barbara E. Tillman, Director, Office of AD/CVD
Enforcement VII, through Maureen Flannery, Program Manager, Office
of AD/CVD Enforcement VII, from Christian Hughes and Adina
Teodorescu, Case Analysts, ``Surrogate Valuation of Shell Scrap:
Freshwater Crawfish Tail Meat from the People's Republic of China
(PRC), Administrative Review 9/1/00-8/31/00 and New Shipper Reviews
9/1/00-8/31/01 and 9/1/00-10/15/01.''
\28\ Id.
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To value factory overhead, selling, general and administrative
expenses, and profit, we used the simple average of the 2009-2010
financial statement of Apex Foods Limited and the 2008-2009 financial
statement of Gemini Seafood Limited, both of which are Bangladeshi
shrimp processors.\29\
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\29\ See SV Memo at Exhibit 8.
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Preliminary Results of Review
The Department has preliminarily determined that the following
dumping margin exists for the period February 1, 2010, through July 31,
2010:
Certain Frozen Warmwater Shrimp From Vietnam
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Manufacturer/exporter Margin
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Quoc Viet.................................. de minimis
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Disclosure
The Department will disclose to parties of this proceeding the
calculation performed in reaching the preliminary results within five
days of the date of publication of this notice in accordance with
section 351.224(b) of the Department's regulations.
Comments
In accordance with section 351.301(c)(3)(ii) of the Department's
regulations, for the final results, interested parties may submit
publicly available information to value FOPs within 20 days after the
date of publication of these preliminary results. Interested parties
must provide the Department with supporting documentation for the
publicly available information to value each FOP. Additionally, in
accordance with section 351.301(c)(1) of the Department's regulations,
for the final results of this NSR, interested parties may submit
factual information to rebut, clarify, or correct factual information
submitted by an interested party within ten days of the applicable
deadline for submission of such factual information. However, the
Department notes that section 351.301(c)(1) of the Department's
regulations permits new information only insofar as it rebuts,
clarifies, or corrects information recently placed on the record.\30\
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\30\ See Glycine from the People's Republic of China: Final
Results of Antidumping Duty Administrative Review and Final
Rescission, in Part, 72 FR 58809 (October 17, 2007) and accompanying
Issues and Decision Memorandum at Comment 2.
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In accordance with section 351.309(c)(ii) of the Department's
regulations, interested parties may submit case briefs and/or written
comments no later than 30 days after the date of publication of the
preliminary results of this NSR. In accordance with section 351.309(d)
of the Department's regulations, rebuttal briefs and rebuttals to
written comments, limited to issues raised in such briefs or comments,
may be filed no later than five days after the deadline for submitting
the case briefs. The Department requests that interested parties
provide an executive summary of each argument contained within the case
briefs and rebuttal briefs.
Any interested party may request a hearing within 30 days of
publication of these preliminary results.\31\ Requests should contain
the following information: (1) The party's name, address, and telephone
number; (2) the number of participants; and (3) a list of the issues to
be discussed. Oral presentations will be limited to issues raised in
the briefs. If we receive a request for a hearing, we plan to hold the
hearing seven days after the deadline for submission of the rebuttal
briefs at the U.S. Department of Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230.
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\31\ See section 351.310(c) of the Department's regulations.
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The Department intends to issue the final results of this NSR,
which will include the results of its analysis raised in any such
comments, within 90 days of publication of these preliminary results,
pursuant to section 351.214(i) of the Department's regulations.
Assessment Rates
Upon issuance of the final results, the Department will determine,
and CBP shall assess, antidumping duties on all appropriate entries
covered by this NSR. The Department intends to issue assessment
instructions to CBP 15 days after the publication date of the final
results of this NSR. If these preliminary results are adopted in our
final results of review, the Department shall determine, and CBP shall
assess, antidumping duties on all appropriate entries. Pursuant to
section 351.212(b)(1) of the Department's regulations, we will
calculate importer-specific (or customer) ad valorem duty assessment
rates. We will instruct CBP to assess antidumping duties on all
appropriate entries covered by this review if any importer-specific
assessment rate calculated in the final results of this review is above
de minimis.
Cash-Deposit Requirements
The following cash deposit requirement will be effective upon
publication of the final results of this NSR for all shipments of
subject merchandise produced and exported from Quoc Viet entered, or
withdrawn from warehouse, for consumption on or after the publication
date, as provided for by section 751(a)(2)(C) of the Act: (1) for
subject merchandise produced and exported by Quoc Viet, the cash
deposit rate will be the rate established in the final results of this
NSR. If the cash deposit rate calculated in the final results is zero
or de minimis, no cash deposit will be required for the specific
producer-exporter combination listed above. The cash deposit
requirement, when imposed, shall remain in effect until further notice.
Notification to Importers
This notice serves as a preliminary reminder to importers of its
responsibility under section 351.402(f)(2) of the Department's
regulations to file a certificate regarding the reimbursement of
antidumping duties prior to liquidation of the relevant entries during
this POR. 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.
We are issuing and publishing this notice in accordance with
sections 751(a)(2)(B) and 777(i) of the Act, and section 351.214(h) and
351.221(b)(4) of the Department's regulations.
[[Page 20633]]
Dated: April 6, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-8892 Filed 4-12-11; 8:45 am]
BILLING CODE 3510-DS-P