Certain Preserved Mushrooms from the People's Republic of China: Preliminary Results of the Eighth New Shipper Review, 42034-42038 [E5-3906]
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42034
Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Notices
Dated: July 14, 2005.
Susan H. Kuhbach,
Acting Deputy Assistant Secretary for Import
Administration.
[FR Doc. E5–3910 Filed 7–20–05; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–851]
Certain Preserved Mushrooms from
the People’s Republic of China:
Preliminary Results of the Eighth New
Shipper Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(‘‘the Department’’) is currently
conducting the eighth new shipper
review of the antidumping duty order
on certain preserved mushrooms from
the People’s Republic of China (‘‘PRC’’)
covering the period February 1, 2004,
through July 31, 2004. This review
covers one exporter.
Pursuant to section 751(a)(2)(B) of the
Tariff Act of 1930 (‘‘the Act’’), we have
preliminarily determined that sales have
not been made at less than normal value
(‘‘NV’’) with respect to the exporter who
participated in this review. If the
preliminary results are adopted in our
final results of this review, we will
instruct U.S. Customs and Border
Protection (‘‘CBP’’) to not assess
antidumping duties on entries of
merchandise subject to this review.
Interested parties are invited to
comment on the preliminary results. We
will issue the final results no later than
90 days from the date of publication of
this notice.
EFFECTIVE DATE: July 21, 2005.
FOR FURTHER INFORMATION CONTACT:
Amber Musser or Stephen F.
Berlinguette, 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)
482–1777 and (202) 482–3740,
respectively.
AGENCY:
SUPPLEMENTARY INFORMATION:
Background
On February 19, 1999, the Department
published in the Federal Register an
amended final determination and
antidumping duty order on certain
preserved mushrooms from the PRC.
See Notice of Amendment of Final
Determination of Sales at Less Than
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Fair Value and Antidumping Duty
Order: Certain Preserved Mushrooms
from the People’s Republic of China, 64
FR 8308 (February 19, 1999). The
Department received a timely request
from Blue Field (Sichuan) Food
Industrial Co., Ltd. (‘‘Blue Field’’), in
accordance with 19 CFR 351.214(b) and
(c), for a new shipper review of the
antidumping duty order on certain
preserved mushrooms from the PRC,
which has a February annual
anniversary month and an August semi–
annual anniversary month. On
September 24, 2004, the Department
found that Blue Field’s request for
review appeared to satisfy the
requirements of 19 CFR 351.214(b) and
initiated the new shipper antidumping
duty review. See Certain Preserved
Mushrooms from the People’s Republic
of China: Initiation of Eighth New
Shipper Antidumping Duty Review, 69
FR 57264 (September 24, 2004). On
September 30, 2004 the Department
provided the parties an opportunity to
submit publicly available information
for consideration in the preliminary
results.
On October 1, 2004, the Department
requested from CBP copies of all
customs documents pertaining to the
entry of certain preserved mushrooms
from the PRC exported by the
respondent during the period of
February 1, 2004, through July 31, 2004.
See Memorandum from James C. Doyle,
Director, Office 9, to William R. Scopa
of CBP, dated October 1, 2004. We
issued the original questionnaire to Blue
Field in September 2004. Responses to
the questionnaire were received in
October 2004. We issued supplemental
questionnaires to Blue Field and an
importer–specific questionnaire to Blue
Field’s U.S. importer in December 2004.
We received responses to the
questionnaires in December 2004 and
January 2005.
From January 10 through January 14,
2005, the Department conducted
verification of the information
submitted by Blue Field in accordance
with 782(i) of the Act and 19 CFR
351.307. On February 8, 2005, we issued
the verification report for Blue Field.
See Memorandum to the File from
Amber Musser and Steve Winkates
through Brian C. Smith, Re: Verification
of the Response of Blue Field (Sichuan)
Food Industrial Co., Ltd. in the Eighth
Antidumping Duty New Shipper Review
of Certain Preserved Mushrooms from
the People’s Republic of China, dated
February 8, 2005 (‘‘Blue Field
verification report’’).
On March 22, 2005, the Department
published in the Federal Register a
notice of postponement of the
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preliminary results until no later than
July 14, 2005 (70 FR 14444).
Scope of the Order
The products covered by this order
are certain preserved mushrooms
whether imported whole, sliced, diced,
or as stems and pieces. The preserved
mushrooms covered under this order are
the species Agaricus bisporus and
Agaricus bitorquis. ‘‘Preserved
mushrooms’’ refer to mushrooms that
have been prepared or preserved by
cleaning, blanching, and sometimes
slicing or cutting. These mushrooms are
then packed and heated in containers
including, but not limited to, cans or
glass jars in a suitable liquid medium,
including, but not limited to, water,
brine, butter or butter sauce. Preserved
mushrooms may be imported whole,
sliced, diced, or as stems and pieces.
Included within the scope of this order
are ‘‘brined’’ mushrooms, which are
pre–salted and packed in a heavy salt
solution to provisionally preserve them
for further processing.
Excluded from the scope of this order
are the following: (1) all other species of
mushrooms, including straw
mushrooms; (2) all fresh and chilled
mushrooms, including ‘‘refrigerated’’ or
‘‘quick blanched mushrooms’’; (3) dried
mushrooms; (4) frozen mushrooms; and
(5) ‘‘marinated,’’ ‘‘acidified,’’ or
‘‘pickled’’ mushrooms, which are
prepared or preserved by means of
vinegar or acetic acid, but may contain
oil or other additives.1
The merchandise subject to this order
is currently classifiable under
subheadings: 2003.10.0127,
2003.10.0131, 2003.10.0137,
2003.10.0143, 2003.10.0147,
2003.10.0153 and 0711.51.0000 of the
Harmonized Tariff Schedule of the
United States (‘‘HTSUS’’). Although the
HTSUS subheadings are provided for
convenience and customs purposes, the
written description of the scope of this
order is dispositive.
Period of Review
The period of review (‘‘POR’’) covers
February 1, 2004, through July 31, 2004.
1 On June 19, 2000, the Department affirmed that
‘‘marinated,’’ ‘‘acidified,’’ or ‘‘pickled’’ mushrooms
containing less than 0.5 percent acetic acid are
within the scope of the antidumping duty order.
See ‘‘Recommendation Memorandum-Final Ruling
of Request by Tak Fat, et al. for Exclusion of Certain
Marinated, Acidified Mushrooms from the Scope of
the Antidumping Duty Order on Certain Preserved
Mushrooms from the People’s Republic of China,’’
dated June 19, 2000. The Department’s scope
determination was affirmed by the Court of Appeals
for the Federal Circuit in Tak Fat Trading
Company, et. al. v. United States, et. al., 396 F.3d
1378 (Fed. Cir., 2005).
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Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Notices
Verification
As provided in section 782(i) of the
Act, as amended, we verified
information provided by Blue Field. We
used standard verification procedures,
including on–site inspection of Blue
Field’s facility and examination of
relevant sales and financial records. Our
verification results are outlined in the
Blue Field verification report.
New Shipper Status
Consistent with our practice, we
investigated the bona fide nature of the
two sales made by Blue Field for this
new shipper review. We found no
evidence that the sales in question were
not bona fide sales. Based on our
investigation into the bona fide nature
of the sales, the questionnaire responses
submitted by the company, and our
verification thereof, we preliminarily
determine that the respondent has met
the requirements to qualify as a new
shipper during the POR, and that it was
not affiliated with any exporter or
producer that had previously shipped
subject merchandise to the United
States. Therefore, for purposes of these
preliminary results of the review, we are
treating the respondent’s sales of certain
preserved mushrooms to the United
States as an appropriate transaction for
this new shipper review.
Separate Rates
In proceedings involving non–marketeconomy (‘‘NME’’) countries, the
Department begins with a rebuttable
presumption that all companies within
the country are subject to government
control and thus should be assessed a
single antidumping duty rate (i.e., a
PRC–wide rate).
Blue Field is a limited liability
company registered in the PRC. Thus, a
separate–rates analysis is necessary to
determine whether the export activities
of this respondent are independent from
government control. See Notice of Final
Determination of Sales at Less Than
Fair Value: Bicycles From the People’s
Republic of China, 61 FR 56570 (April
30, 1996). To establish whether a firm
is sufficiently independent in its export
activities from government control to be
entitled to a separate rate, the
Department utilizes a test arising from
the Final Determination of Sales at Less
Than Fair Value: Sparklers from the
People’s Republic of China, 56 FR 20588
(May 6, 1991), and amplified in the
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’’). Under the separate–rates
criteria, the Department assigns separate
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rates in NME cases only if the
respondent can demonstrate the absence
of both de jure and de facto
governmental control over export
activities.
1. De Jure Control
Evidence supporting, though not
requiring, a finding of de jure absence
of government control over exporter
activities includes: (1) an absence of
restrictive stipulations associated with
the individual exporter’s business and
export licenses; (2) any legislative
enactments decentralizing control of
companies; and (3) any other formal
measures by the government
decentralizing control of companies.
In prior cases involving products from
the PRC, the Department has examined
the following PRC laws for purposes of
determining whether there is an absence
of de jure control with respect to a
respondent’s export functions: the 1994
‘‘Foreign Trade Law of the People’s
Republic of China;’’ the ‘‘Company Law
of the PRC,’’ effective as of July 1, 1994;
and ‘‘The Enterprise Legal Person
Registration Administrative
Regulations,’’ promulgated on June 13,
1988. See July 22, 2004, Memorandum
to the File, which places the above–
referenced laws on the record of this
proceeding segment.
As in prior cases, we have analyzed
these laws and have found them to
establish sufficiently an absence of de
jure control of limited liability
companies absent proof on the record to
the contrary. See, e.g., Final
Determination of Sales at Less than Fair
Value: Furfuryl Alcohol from the
People’s Republic of China, 60 FR 22544
(May 8, 1995) (‘‘Furfuryl Alcohol’’), and
Preliminary Determination of Sales at
Less Than Fair Value: Certain Partial–
Extension Steel Drawer Slides with
Rollers from the People’s Republic of
China, 60 FR 29571 (June 5, 1995).
The respondent has placed on the
record a number of documents to
demonstrate absence of de jure control,
including the Foreign Trade Law of the
People’s Republic of China (May 12,
1994) and the Administrative
Regulations of the People’s Republic of
China Governing the Registration of
Legal Corporations (June 3, 1988). The
Department has analyzed such PRC laws
and found that they establish an absence
of de jure control. See, e.g., Preliminary
Results of New Shipper Review: Certain
Preserved Mushrooms From the People’s
Republic of China, 66 FR 30695, 30696
(June 7, 2001). At verification, we found
that the respondent’s business license
and Certificate of Approval for
enterprises with foreign trade rights in
the PRC were granted in accordance
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with these laws. For further
information, see the Blue Field
verification report. Therefore, we
preliminarily determine that there is an
absence of de jure control over the
respondent’s export activities.
2. De Facto Control
As stated in previous cases, there is
some evidence that certain enactments
of the PRC central government have not
been implemented uniformly among
different sectors and/or jurisdictions in
the PRC. See Silicon Carbide, 59 FR at
22587, and Furfuryl Alcohol, 60 FR at
22544. Therefore, the Department has
determined that an analysis of de facto
control is critical in determining
whether the respondents are, in fact,
subject to a degree of governmental
control which would preclude the
Department from assigning separate
rates.
The Department typically considers
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 subject to the approval of,
a governmental authority; (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; and (4)
whether the respondent retains the
proceeds of its export sales and makes
independent decisions regarding the
disposition of profits or financing of
losses. See Silicon Carbide, 59 FR at
22587 and Furfuryl Alcohol, 60 FR at
22545.
Blue Field has asserted the following:
(1) it establishes its own export prices;
(2) it negotiates contracts without
guidance from any governmental
entities or organizations; (3) it makes its
own personnel decisions; and (4) it
retains the proceeds of its export sales,
uses profits according to its business
needs, and has the authority to sell its
assets and to obtain loans. We examined
documentation at verification which
substantiated Blue Field’s claims as
noted above. See the Blue Field
verification report, pages 3–11. As a
result, there is a sufficient basis to
determine preliminarily that this
respondent has demonstrated a de facto
absence of government control of its
export functions and is entitled to a
separate rate. Consequently, we have
preliminarily determined that Blue
Field has met the criteria for the
application of separate rates.
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Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Notices
Normal Value Comparisons
To determine whether Blue Field’s
two sales of subject merchandise to the
United States were made at prices below
NV, we compared the export prices to
NV, as described in the ‘‘Export Price’’
and ‘‘Normal Value’’ sections of this
notice, below.
Export Price
We used export price (‘‘EP’’)
methodology in accordance with section
772(a) of the Act because the subject
merchandise was first sold prior to
importation by the exporter outside the
United States directly to an unaffiliated
purchaser in the United States, and
constructed export price was not
otherwise indicated.
We calculated EP based on the packed
FOB China port price to the first
unaffiliated purchaser in the United
States. Where appropriate, we made
deductions from the starting price (gross
unit price) for foreign inland freight and
foreign brokerage and handling charges
in the PRC in accordance with section
772(c) of the Act. Because foreign inland
freight and foreign brokerage and
handling fees were provided by PRC
service providers or paid for in
renminbi, we based those charges on
surrogate rates from India (see
‘‘Surrogate Country’’ section below for
further discussion of our surrogate–
country selection).
To value foreign inland trucking
charges, we used truck freight distances
and rates published by the Indian
Freight Exchange obtained from the
following website: https://
www.infreight.com. To value foreign
inland train freight charges, we used
data contained in the July 2001 Reserve
Bank of India Bulletin. To value foreign
brokerage and handling expenses, we
relied on October 1999–September 2000
information reported in the public U.S.
sales listing submitted by Essar Steel
Ltd. in the antidumping investigation of
Certain Hot–Rolled Carbon Steel Flat
Products from India: Final
Determination of Sales at Less Than
Fair Value, 67 FR 50406 (October 3,
2001).
Normal Value
A. Non–Market-Economy Status
In every case conducted by the
Department involving the PRC, the PRC
has been treated as an NME country.
Pursuant to 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. See Tapered
Roller Bearings and Parts Thereof,
Finished and Unfinished, From the
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People’s Republic of China: Preliminary
Results 2001–2002 Administrative
Review and Partial Rescission of
Review, 68 FR 7500 (February 14, 2003).
None of the parties to this review has
contested such treatment. Accordingly,
we calculated NV in accordance with
section 773(c) of the Act, which applies
to NME countries.
B. Surrogate Country
Section 773(c)(4) of the Act requires
the Department to value an NME
producer’s factors of production, to the
extent possible, in one or more market–
economy countries that (1) are at a level
of economic development comparable to
that of the NME country, and (2) are
significant producers of comparable
merchandise. India was among the
countries comparable to the PRC in
terms of overall economic development.
See Surrogate Country Request
Memorandum, dated September 28,
2004. In addition, based on publicly
available information placed on the
record (e.g., world production data),
India is a significant producer of the
subject merchandise. Accordingly, we
considered India the surrogate country
for purposes of valuing the factors of
production because it meets the
Department’s criteria for surrogate–
country selection. See Memorandum Re:
Seventh Antidumping Duty New
Shipper Review on Certain Preserved
Mushrooms from the People’s Republic
of China: Selection of a Surrogate
Country, dated September 28, 2004.
C. Factors of Production
In accordance with section 773(c) of
the Act, we calculated NV based on the
factors of production which included,
but were not limited to: (A) hours of
labor required; (B) quantities of raw
materials employed; (C) amounts of
energy and other utilities consumed;
and (D) representative capital costs,
including depreciation. We used the
factors reported by Blue Field which
produced the preserved mushrooms it
exported to the United States during the
POR. To calculate NV, we multiplied
the reported unit factor quantities by
publicly available Indian values.
Based on our verification findings, we
revised the per–unit factor reported for
soil and the reported inland freight
distances reported in Blue Field’s
responses. See Blue Field verification
report at pages 14 and 16.
The Department’s selection of the
surrogate values applied in this
determination was based on the quality,
specificity, and contemporaneity of the
data. As appropriate, we adjusted input
prices to make them delivered prices.
For those values not contemporaneous
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with the POR and quoted in a foreign
currency or in U.S. dollars, we adjusted
for inflation using wholesale price
indices (‘‘WPIs’’) published in the
International Monetary Fund’s
International Financial Statistics
(‘‘IFS’’). See Memorandum Re: Factors
Valuation For the Preliminary Results,
from Stephen F. Berlinguette,
International Trade Compliance Analyst
to James C. Doyle, Director, Office 9,
dated July 14, 2005, for a detailed
explanation of the methodology used to
calculate surrogate values.
Except where specified below, we
valued raw material inputs using the
weighted–average unit import values
from the POR derived from the World
Trade Atlas Trade Information System
(Internet Version 4.3e) (‘‘World Trade
Atlas’’). The source of these values was
the Directorate General of Commercial
Intelligence and Statistics of the Indian
Ministry of Commerce and Industry.
Below is a listing of surrogate values
that utilized sources other than POR–
contemporaneous World Trade Atlas
data.
Blue Field produced (rather than
purchased) the fresh mushrooms which
it used in the mushroom canning
process during the POR. Therefore, we
valued the inputs which this company
used to produce the fresh mushrooms
which were canned during the POR. To
value spawn, we used an average price
based on data contained in the 2003–
2004 financial reports of Agro Dutch
Foods, Ltd. (‘‘Agro Dutch’’), Flex Foods
Ltd. (‘‘Flex Foods’’) and Premier
Explosives, Ltd. (‘‘Premier Explosives’’)
(i.e., three Indian producers of the
subject merchandise). To value cow
manure, we averaged data contained in
the above–referenced Flex Foods and
Agro Dutch financial reports. To value
rice straw, we used data from the 2003–
2004 Premier Explosives financial
report. For soil, we used 2003–2004
price information obtained from a
project report issued in December 2004
by India’s National Bank for Agriculture
and Rural Development entitled
Integrated Project on Production and
Processing of Button Mushrooms for
Export, available online at: https://
www.nabard.org/roles/ms/ap/
mushroom.htm.
Blue Field produced all of the cans
which it used to sell preserved
mushrooms to the U.S. market during
the POR. Therefore, for can–making
materials, we valued tin plate using
January 2002–December 2002 average
Indian import values from World Trade
Atlas, and we valued copper conducting
wire using January 2003–December
2003 average Indian import values from
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World Trade Atlas, as its useable form
is consumed in the production of cans.
Because there is insufficient evidence
on the record to account for the factors
involved in recovering the resulting
scrap, we did not apply a scrap offset.
Parties requesting a byproduct offset
have the burden of presenting to the
Department not only evidence that the
generated byproduct is sold or re–used
in the production of the subject
merchandise, but also all the
information necessary for the
Department to incorporate such offsets
into the margin calculation. In this
instance, however, Blue Field did not
provide evidence that post–production
copper wire scrap was sold or re–used.
Moreover, Blue Field did not provide
either the complete set of factors
necessary for the reworking of the scrap
copper wire into a useable form, nor did
it provide an attempt at a valuation for
such factors. As a result of these
considerations, we preliminarily
determine that Blue Field did not meet
its burden of adequately documenting
the claimed byproduct offset and, as a
result, we did not apply it.
To value salt, we used and inflated an
average import price based on January
2002–December 2003 data contained in
World Trade Atlas because we were
unable to obtain a more current
value.To value water we used January
2003 data available on the Maharastra
Industrial Development Corporation’s
website and was used in the Final
Determination of Sales at Less Than
Fair Value: Fresh Garlic from the
People’s Republic of China, 70 FR
34082–34086 (June 13, 2005). We used
data contained in the 2002–2003
financial report of Flex Foods to
calculate and inflate a POR value for
super phosphate.
We valued labor based on a
regression–based wage rate, in
accordance with 19 CFR 351.408(c)(3).
See Expected Wages of Selected Non–
market Economy Countries, from the
Import Administration website at: http:/
/ia.ita.doc.gov/wages/.
To value electricity, we used 2000
Indian price data from the International
Energy Agency’s (‘‘IEA’’) report,
‘‘Electricity Prices for Industry,’’
contained in the 2002 Key World Energy
Statistics from the IEA. To value steam
coal, we used February 2004–July 2004
Indian import data from World Trade
Atlas, and added an amount for loading
and additional transportation charges
associated with delivering coal to the
factory based on June 1999 Indian price
data contained in the periodical
Business Line.
To value factory overhead and selling,
general, and administrative (‘‘SG&A’’)
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expenses, and profit, we used the 2003–
2004 financial reports of Agro Dutch
and Flex Foods, both Indian producers
of the subject merchandise.
In accordance with the decision of the
Court of Appeals for the Federal Circuit
in Sigma Corp. v. United States, 117 F.
3d 1401 (Fed. Cir. 1997), we revised our
methodology for calculating source–tofactory surrogate freight for those
material inputs that are valued, based
all or in part, on CIF import values in
the surrogate country. Therefore, we
have added to CIF surrogate values from
India a surrogate freight cost using the
shorter of the reported distances from
either the closest PRC port of
importation to the factory, or from the
domestic supplier to the factory on an
input–specific basis.
Preliminary Results of the Review
We preliminarily determine that the
following margin exists during the
period February 1, 2004, through July
31, 2004:
Manufacturer/producer/
exporter
Margin Percent
Blue Field (Sichuan)
Food Industrial Co.,
Ltd. ..............................
0.00
We will disclose the calculations used
in our analysis to the parties to this
proceeding within five days of the date
of publication of this notice. Any
interested party may request a hearing
within 30 days of publication of this
notice. Any hearing, if requested, will
be held on September 12, 2005.
Interested parties who wish to request
a hearing or to participate if one is
requested, must submit a written
request to the Assistant Secretary for
Import Administration, Room B–099,
within 30 days of the date of publication
of this notice. Requests should contain:
(1) the party’s name, address, and
telephone number; (2) the number of
participants; and (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 case briefs and
rebuttal briefs. Case briefs from
interested parties may be submitted no
later than August 22, 2005. Rebuttal
briefs, limited to issues raised in the
case briefs, will be due no later than
August 29, 2005. Parties who submit
case briefs or rebuttal briefs in this
proceeding are requested to submit with
each argument (1) a statement of the
issue; and (2) a brief summary of the
argument. Parties are also encouraged to
provide a summary of the arguments not
to exceed five pages and a table of
statutes, regulations, and cases cited.
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The Department will issue the final
results of the review, including the
results of its analysis of issues raised in
any such written briefs or at the hearing,
if held, not later than 90 days after the
date of issuance of the preliminary
results.
Assessment Rates
Upon issuing the final results of the
review, the Department shall determine,
and CBP shall assess and liquidate,
antidumping duties on all appropriate
entries. The Department will issue
appropriate appraisement instructions
for the company subject to this review
directly to CBP within 15 days of
publication of the final results of this
review. Pursuant to 19 CFR
351.212(b)(1), we will calculate
importer–specific ad valorem duty
assessment rates based on the ratio of
the total amount of the dumping
margins calculated for the examined
sales to the total entered value of those
same sales. 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
Upon completion of this review, we
will require cash deposits at the rate
established in the final results as further
described below.
Bonding will no longer be permitted
to fulfill security requirements for
shipments of mushrooms from the PRC
produced and exported by Blue Field
that are entered, or withdrawn from
warehouse, for consumption on or after
the publication date of the final results
of the new shipper review. The
following cash deposit requirements
will be effective upon publication of the
final results of this review for all
shipments of subject merchandise from
Blue Field entered, or withdrawn from
warehouse, for consumption on or after
the publication date: (1) for subject
merchandise manufactured and
exported by Blue Field, no cash deposit
will be required if the cash deposit rate
calculated in the final results is zero or
de minimis; (2) for subject merchandise
exported by Blue Field but not
manufactured by Blue Field, the cash
deposit rate will continue to be the
PRC–wide rate (i.e., 198.63 percent);
and (3) for subject merchandise
produced by Blue Field but not
exported by Blue Field, the cash deposit
rate will be the rate applicable to the
exporter.
These requirements, when imposed,
shall remain in effect until publication
E:\FR\FM\21JYN1.SGM
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42038
Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Notices
of the final results of the next
administrative review.
Notification to Importers
This notice 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.
This new shipper review and notice
are in accordance with sections
751(a)(2)(B) and 777(i) of the Act and 19
CFR 351.214.
Dated: July 14, 2005.
Susan H. Kuhbach,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E5–3906 Filed 7–20–05; 8:45 am]
BILLING CODE: 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–851]
Certain Preserved Mushrooms from
the People’s Republic of China: Notice
of Partial Rescission of Antidumping
Duty Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: On March 23, 2005, the
Department of Commerce (‘‘the
Department’’) published in the Federal
Register (70 FR 14643) a notice
announcing the initiation of the sixth
administrative review of the
antidumping duty order on certain
preserved mushrooms from the People’s
Republic of China (‘‘PRC’’). The period
of review (‘‘POR’’) is February 1, 2004,
to January 31, 2005. This review is now
being rescinded for Blue Field (Sichuan)
Food Industrial Co., Ltd.; China
Processed Food Import & Export
Company; China National Cereals, Oils,
and Foodstuffs Import & Export
Corporation; COFCO (Zhangzhou) Food
Industrial Co.; Ltd., Fujian Zishan
Group Co.; Xiamen Jiahua Import &
Export Trading Co., Ltd.; Fujian Yu Xing
Fruit and Vegetable Foodstuff
Development Co., Ltd.1; Shandong Jiufa
Edible Fungus Co., Ltd.; Guangxi
AGENCY:
1 The Department originally made an inadvertent
typographical error by neglecting to include the
term ‘Development’ in this company’s name in the
above-referenced Federal Register initiation notice.
VerDate jul<14>2003
19:42 Jul 20, 2005
Jkt 205001
Hengxian Pro–Light Foods, Inc.;
Guangxi Yizhou Dongfang Cannery;
Inter–foods D.S. Co., Ltd.; Mei Wei Food
Industry Co., Ltd.; Nanning Runchao
Industrial Trade Co., Ltd.; Raoping
Xingyu Foods Co., Ltd.; Xiamen Jiahua
Import & Export Trading Co., Ltd.;
Xiamen Zhongjia Import and Export Co.,
Ltd.; Shanghai Superlucky Import &
Export Company, Ltd.; Shantou Hongda
Industrial General Corporation;
Shenxian Dongxing Foods Co., Ltd.;
Shenzhen Qunxingyuan Trading Co.,
Ltd.; Tak Fat Trading Co.; Xiamen
International Trade & Industrial Co.,
Ltd.; Zhangzhou Hongning Canned
Food Factory; Zhangzhou Jingxiang
Foods Co., Ltd.; Zhangzhou Longhai
Lubao Food Co., Ltd.; and Zhangzhou
Longhai Minhui Industry and Trade Co.,
Ltd., (collectively ‘‘the Twenty–five
Companies’’) because the only
requesting party withdrew its request in
a timely manner.
EFFECTIVE DATE: July 21, 2005.
FOR FURTHER INFORMATION CONTACT:
Stephen F. Berlinguette, AD/CVD
Operations Office 9, Import
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Room 4003, Washington,
DC 20230; telephone (202) 482–3740.
SUPPLEMENTARY INFORMATION:
Background
On February 19, 1999, the Department
published in the Federal Register an
amended final determination and
antidumping duty order on certain
preserved mushrooms from the PRC.
See Notice of Amendment of Final
Determination of Sales at Less Than
Fair Value and Antidumping Duty
Order: Certain Preserved Mushrooms
from the People’s Republic of China, 64
FR 8308 (February 19, 1999).
On February 1, 2005, the Department
published a Notice of Opportunity to
Request Administrative Review of
Antidumping or Countervailing Duty
Order, Finding, or Suspended
Investigation, 70 FR 5136. On February
28, 2005, the Petitioner requested, in
accordance with section 751(a) of the
Tariff Act of 1930 (‘‘the Act’’) and 19
CFR 351.213(b), an administrative
review of the antidumping duty order
on certain preserved mushrooms from
the PRC for thirty companies covering
the period February 1, 2004, through
January 31, 2005. On February 7, 2005,
and February 25, 2005, four Chinese
companies requested an administrative
review of their respective companies.
The Department notes that these four
companies were included in the
Petitioner’s February 28, 2005, request.
PO 00000
Frm 00015
Fmt 4703
Sfmt 4703
On March 23, 2005, the Department
initiated an administrative review of
thirty Chinese companies. See Initiation
of Antidumping and Countervailing
Duty Administrative Reviews and
Request for Revocation in Part, 70 FR
14643 (March 23, 2005). On June 29,
2005, the Petitioner filed a timely letter
withdrawing its request for review of
the Twenty–five companies.
Rescission of Review
Pursuant to section 351.213(d)(1) of
the Department’s regulations, if a party
that requests a review withdraws the
review request within ninety days of the
date of publication of the notice of
initiation of the requested review, the
Secretary will rescind the review. The
Petitioner withdrew its review request
with respect to the Twenty–five
Companies in a timely manner, in
accordance with 19 CFR 351.213(d)(1).
Since the Petitioner was the only party
to request an administrative review of
the Twenty–five Companies, we are
partially rescinding this review of the
antidumping duty order on certain
preserved mushrooms from the PRC
covering the period February 1, 2004,
through January 31, 2005, with respect
to the Twenty–five Companies.
Assessment
The Department will instruct U.S.
Customs and Border Protection (‘‘CBP’’)
to assess antidumping duties on all
appropriate entries. For those
companies for which this review is
rescinded, antidumping duties shall be
assessed at rates equal to the cash
deposit of estimated antidumping duties
required at the time of entry, or
withdrawal from warehouse, for
consumption, in accordance with 19
CFR 351.212(c)(1)(i). The Department
will issue appropriate assessment
instructions directly to CBP within 15
days of publication of this notice.
Notification of Interested Parties
This notice serves as a final 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 the antidumping
duties occurred and the subsequent
assessment of double antidumping
duties.
This notice also serves as a reminder
to parties subject to administrative
protective orders (‘‘APOs’’) of their
responsibility concerning the return or
destruction of proprietary information
E:\FR\FM\21JYN1.SGM
21JYN1
Agencies
[Federal Register Volume 70, Number 139 (Thursday, July 21, 2005)]
[Notices]
[Pages 42034-42038]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-3906]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-851]
Certain Preserved Mushrooms from the People's Republic of China:
Preliminary Results of the Eighth New Shipper Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (``the Department'') is currently
conducting the eighth new shipper review of the antidumping duty order
on certain preserved mushrooms from the People's Republic of China
(``PRC'') covering the period February 1, 2004, through July 31, 2004.
This review covers one exporter.
Pursuant to section 751(a)(2)(B) of the Tariff Act of 1930 (``the
Act''), we have preliminarily determined that sales have not been made
at less than normal value (``NV'') with respect to the exporter who
participated in this review. If the preliminary results are adopted in
our final results of this review, we will instruct U.S. Customs and
Border Protection (``CBP'') to not assess antidumping duties on entries
of merchandise subject to this review.
Interested parties are invited to comment on the preliminary
results. We will issue the final results no later than 90 days from the
date of publication of this notice.
EFFECTIVE DATE: July 21, 2005.
FOR FURTHER INFORMATION CONTACT: Amber Musser or Stephen F.
Berlinguette, 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) 482-1777 and (202) 482-3740, respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 19, 1999, the Department published in the Federal
Register an amended final determination and antidumping duty order on
certain preserved mushrooms from the PRC. See Notice of Amendment of
Final Determination of Sales at Less Than Fair Value and Antidumping
Duty Order: Certain Preserved Mushrooms from the People's Republic of
China, 64 FR 8308 (February 19, 1999). The Department received a timely
request from Blue Field (Sichuan) Food Industrial Co., Ltd. (``Blue
Field''), in accordance with 19 CFR 351.214(b) and (c), for a new
shipper review of the antidumping duty order on certain preserved
mushrooms from the PRC, which has a February annual anniversary month
and an August semi-annual anniversary month. On September 24, 2004, the
Department found that Blue Field's request for review appeared to
satisfy the requirements of 19 CFR 351.214(b) and initiated the new
shipper antidumping duty review. See Certain Preserved Mushrooms from
the People's Republic of China: Initiation of Eighth New Shipper
Antidumping Duty Review, 69 FR 57264 (September 24, 2004). On September
30, 2004 the Department provided the parties an opportunity to submit
publicly available information for consideration in the preliminary
results.
On October 1, 2004, the Department requested from CBP copies of all
customs documents pertaining to the entry of certain preserved
mushrooms from the PRC exported by the respondent during the period of
February 1, 2004, through July 31, 2004. See Memorandum from James C.
Doyle, Director, Office 9, to William R. Scopa of CBP, dated October 1,
2004. We issued the original questionnaire to Blue Field in September
2004. Responses to the questionnaire were received in October 2004. We
issued supplemental questionnaires to Blue Field and an importer-
specific questionnaire to Blue Field's U.S. importer in December 2004.
We received responses to the questionnaires in December 2004 and
January 2005.
From January 10 through January 14, 2005, the Department conducted
verification of the information submitted by Blue Field in accordance
with 782(i) of the Act and 19 CFR 351.307. On February 8, 2005, we
issued the verification report for Blue Field. See Memorandum to the
File from Amber Musser and Steve Winkates through Brian C. Smith, Re:
Verification of the Response of Blue Field (Sichuan) Food Industrial
Co., Ltd. in the Eighth Antidumping Duty New Shipper Review of Certain
Preserved Mushrooms from the People's Republic of China, dated February
8, 2005 (``Blue Field verification report'').
On March 22, 2005, the Department published in the Federal Register
a notice of postponement of the preliminary results until no later than
July 14, 2005 (70 FR 14444).
Scope of the Order
The products covered by this order are certain preserved mushrooms
whether imported whole, sliced, diced, or as stems and pieces. The
preserved mushrooms covered under this order are the species Agaricus
bisporus and Agaricus bitorquis. ``Preserved mushrooms'' refer to
mushrooms that have been prepared or preserved by cleaning, blanching,
and sometimes slicing or cutting. These mushrooms are then packed and
heated in containers including, but not limited to, cans or glass jars
in a suitable liquid medium, including, but not limited to, water,
brine, butter or butter sauce. Preserved mushrooms may be imported
whole, sliced, diced, or as stems and pieces. Included within the scope
of this order are ``brined'' mushrooms, which are pre-salted and packed
in a heavy salt solution to provisionally preserve them for further
processing.
Excluded from the scope of this order are the following: (1) all
other species of mushrooms, including straw mushrooms; (2) all fresh
and chilled mushrooms, including ``refrigerated'' or ``quick blanched
mushrooms''; (3) dried mushrooms; (4) frozen mushrooms; and (5)
``marinated,'' ``acidified,'' or ``pickled'' mushrooms, which are
prepared or preserved by means of vinegar or acetic acid, but may
contain oil or other additives.\1\
---------------------------------------------------------------------------
\1\ On June 19, 2000, the Department affirmed that
``marinated,'' ``acidified,'' or ``pickled'' mushrooms containing
less than 0.5 percent acetic acid are within the scope of the
antidumping duty order. See ``Recommendation Memorandum-Final Ruling
of Request by Tak Fat, et al. for Exclusion of Certain Marinated,
Acidified Mushrooms from the Scope of the Antidumping Duty Order on
Certain Preserved Mushrooms from the People's Republic of China,''
dated June 19, 2000. The Department's scope determination was
affirmed by the Court of Appeals for the Federal Circuit in Tak Fat
Trading Company, et. al. v. United States, et. al., 396 F.3d 1378
(Fed. Cir., 2005).
---------------------------------------------------------------------------
The merchandise subject to this order is currently classifiable
under subheadings: 2003.10.0127, 2003.10.0131, 2003.10.0137,
2003.10.0143, 2003.10.0147, 2003.10.0153 and 0711.51.0000 of the
Harmonized Tariff Schedule of the United States (``HTSUS''). Although
the HTSUS subheadings are provided for convenience and customs
purposes, the written description of the scope of this order is
dispositive.
Period of Review
The period of review (``POR'') covers February 1, 2004, through
July 31, 2004.
[[Page 42035]]
Verification
As provided in section 782(i) of the Act, as amended, we verified
information provided by Blue Field. We used standard verification
procedures, including on-site inspection of Blue Field's facility and
examination of relevant sales and financial records. Our verification
results are outlined in the Blue Field verification report.
New Shipper Status
Consistent with our practice, we investigated the bona fide nature
of the two sales made by Blue Field for this new shipper review. We
found no evidence that the sales in question were not bona fide sales.
Based on our investigation into the bona fide nature of the sales, the
questionnaire responses submitted by the company, and our verification
thereof, we preliminarily determine that the respondent has met the
requirements to qualify as a new shipper during the POR, and that it
was not affiliated with any exporter or producer that had previously
shipped subject merchandise to the United States. Therefore, for
purposes of these preliminary results of the review, we are treating
the respondent's sales of certain preserved mushrooms to the United
States as an appropriate transaction for this new shipper review.
Separate Rates
In proceedings involving non-market-economy (``NME'') countries,
the Department begins with a rebuttable presumption that all companies
within the country are subject to government control and thus should be
assessed a single antidumping duty rate (i.e., a PRC-wide rate).
Blue Field is a limited liability company registered in the PRC.
Thus, a separate-rates analysis is necessary to determine whether the
export activities of this respondent are independent from government
control. See Notice of Final Determination of Sales at Less Than Fair
Value: Bicycles From the People's Republic of China, 61 FR 56570 (April
30, 1996). To establish whether a firm is sufficiently independent in
its export activities from government control to be entitled to a
separate rate, the Department utilizes a test arising from the Final
Determination of Sales at Less Than Fair Value: Sparklers from the
People's Republic of China, 56 FR 20588 (May 6, 1991), and amplified in
the 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''). Under the separate-rates criteria, the
Department assigns separate rates in NME cases only if the respondent
can demonstrate the absence of both de jure and de facto governmental
control over export activities.
1. De Jure Control
Evidence supporting, though not requiring, a finding of de jure
absence of government control over exporter activities includes: (1) an
absence of restrictive stipulations associated with the individual
exporter's business and export licenses; (2) any legislative enactments
decentralizing control of companies; and (3) any other formal measures
by the government decentralizing control of companies.
In prior cases involving products from the PRC, the Department has
examined the following PRC laws for purposes of determining whether
there is an absence of de jure control with respect to a respondent's
export functions: the 1994 ``Foreign Trade Law of the People's Republic
of China;'' the ``Company Law of the PRC,'' effective as of July 1,
1994; and ``The Enterprise Legal Person Registration Administrative
Regulations,'' promulgated on June 13, 1988. See July 22, 2004,
Memorandum to the File, which places the above-referenced laws on the
record of this proceeding segment.
As in prior cases, we have analyzed these laws and have found them
to establish sufficiently an absence of de jure control of limited
liability companies absent proof on the record to the contrary. See,
e.g., Final Determination of Sales at Less than Fair Value: Furfuryl
Alcohol from the People's Republic of China, 60 FR 22544 (May 8, 1995)
(``Furfuryl Alcohol''), and Preliminary Determination of Sales at Less
Than Fair Value: Certain Partial-Extension Steel Drawer Slides with
Rollers from the People's Republic of China, 60 FR 29571 (June 5,
1995).
The respondent has placed on the record a number of documents to
demonstrate absence of de jure control, including the Foreign Trade Law
of the People's Republic of China (May 12, 1994) and the Administrative
Regulations of the People's Republic of China Governing the
Registration of Legal Corporations (June 3, 1988). The Department has
analyzed such PRC laws and found that they establish an absence of de
jure control. See, e.g., Preliminary Results of New Shipper Review:
Certain Preserved Mushrooms From the People's Republic of China, 66 FR
30695, 30696 (June 7, 2001). At verification, we found that the
respondent's business license and Certificate of Approval for
enterprises with foreign trade rights in the PRC were granted in
accordance with these laws. For further information, see the Blue Field
verification report. Therefore, we preliminarily determine that there
is an absence of de jure control over the respondent's export
activities.
2. De Facto Control
As stated in previous cases, there is some evidence that certain
enactments of the PRC central government have not been implemented
uniformly among different sectors and/or jurisdictions in the PRC. See
Silicon Carbide, 59 FR at 22587, and Furfuryl Alcohol, 60 FR at 22544.
Therefore, the Department has determined that an analysis of de facto
control is critical in determining whether the respondents are, in
fact, subject to a degree of governmental control which would preclude
the Department from assigning separate rates.
The Department typically considers 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
subject to the approval of, a governmental authority; (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; and (4)
whether the respondent retains the proceeds of its export sales and
makes independent decisions regarding the disposition of profits or
financing of losses. See Silicon Carbide, 59 FR at 22587 and Furfuryl
Alcohol, 60 FR at 22545.
Blue Field has asserted the following: (1) it establishes its own
export prices; (2) it negotiates contracts without guidance from any
governmental entities or organizations; (3) it makes its own personnel
decisions; and (4) it retains the proceeds of its export sales, uses
profits according to its business needs, and has the authority to sell
its assets and to obtain loans. We examined documentation at
verification which substantiated Blue Field's claims as noted above.
See the Blue Field verification report, pages 3-11. As a result, there
is a sufficient basis to determine preliminarily that this respondent
has demonstrated a de facto absence of government control of its export
functions and is entitled to a separate rate. Consequently, we have
preliminarily determined that Blue Field has met the criteria for the
application of separate rates.
[[Page 42036]]
Normal Value Comparisons
To determine whether Blue Field's two sales of subject merchandise
to the United States were made at prices below NV, we compared the
export prices to NV, as described in the ``Export Price'' and ``Normal
Value'' sections of this notice, below.
Export Price
We used export price (``EP'') methodology in accordance with
section 772(a) of the Act because the subject merchandise was first
sold prior to importation by the exporter outside the United States
directly to an unaffiliated purchaser in the United States, and
constructed export price was not otherwise indicated.
We calculated EP based on the packed FOB China port price to the
first unaffiliated purchaser in the United States. Where appropriate,
we made deductions from the starting price (gross unit price) for
foreign inland freight and foreign brokerage and handling charges in
the PRC in accordance with section 772(c) of the Act. Because foreign
inland freight and foreign brokerage and handling fees were provided by
PRC service providers or paid for in renminbi, we based those charges
on surrogate rates from India (see ``Surrogate Country'' section below
for further discussion of our surrogate-country selection).
To value foreign inland trucking charges, we used truck freight
distances and rates published by the Indian Freight Exchange obtained
from the following website: https://www.infreight.com. To value foreign
inland train freight charges, we used data contained in the July 2001
Reserve Bank of India Bulletin. To value foreign brokerage and handling
expenses, we relied on October 1999-September 2000 information reported
in the public U.S. sales listing submitted by Essar Steel Ltd. in the
antidumping investigation of Certain Hot-Rolled Carbon Steel Flat
Products from India: Final Determination of Sales at Less Than Fair
Value, 67 FR 50406 (October 3, 2001).
Normal Value
A. Non-Market-Economy Status
In every case conducted by the Department involving the PRC, the
PRC has been treated as an NME country. Pursuant to 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. See Tapered Roller Bearings and Parts Thereof,
Finished and Unfinished, From the People's Republic of China:
Preliminary Results 2001-2002 Administrative Review and Partial
Rescission of Review, 68 FR 7500 (February 14, 2003). None of the
parties to this review has contested such treatment. Accordingly, we
calculated NV in accordance with section 773(c) of the Act, which
applies to NME countries.
B. Surrogate Country
Section 773(c)(4) of the Act requires the Department to value an
NME producer's factors of production, to the extent possible, in one or
more market-economy countries that (1) are at a level of economic
development comparable to that of the NME country, and (2) are
significant producers of comparable merchandise. India was among the
countries comparable to the PRC in terms of overall economic
development. See Surrogate Country Request Memorandum, dated September
28, 2004. In addition, based on publicly available information placed
on the record (e.g., world production data), India is a significant
producer of the subject merchandise. Accordingly, we considered India
the surrogate country for purposes of valuing the factors of production
because it meets the Department's criteria for surrogate-country
selection. See Memorandum Re: Seventh Antidumping Duty New Shipper
Review on Certain Preserved Mushrooms from the People's Republic of
China: Selection of a Surrogate Country, dated September 28, 2004.
C. Factors of Production
In accordance with section 773(c) of the Act, we calculated NV
based on the factors of production which included, but were not limited
to: (A) hours of labor required; (B) quantities of raw materials
employed; (C) amounts of energy and other utilities consumed; and (D)
representative capital costs, including depreciation. We used the
factors reported by Blue Field which produced the preserved mushrooms
it exported to the United States during the POR. To calculate NV, we
multiplied the reported unit factor quantities by publicly available
Indian values.
Based on our verification findings, we revised the per-unit factor
reported for soil and the reported inland freight distances reported in
Blue Field's responses. See Blue Field verification report at pages 14
and 16.
The Department's selection of the surrogate values applied in this
determination was based on the quality, specificity, and
contemporaneity of the data. As appropriate, we adjusted input prices
to make them delivered prices. For those values not contemporaneous
with the POR and quoted in a foreign currency or in U.S. dollars, we
adjusted for inflation using wholesale price indices (``WPIs'')
published in the International Monetary Fund's International Financial
Statistics (``IFS''). See Memorandum Re: Factors Valuation For the
Preliminary Results, from Stephen F. Berlinguette, International Trade
Compliance Analyst to James C. Doyle, Director, Office 9, dated July
14, 2005, for a detailed explanation of the methodology used to
calculate surrogate values.
Except where specified below, we valued raw material inputs using
the weighted-average unit import values from the POR derived from the
World Trade Atlas Trade Information System (Internet Version 4.3e)
(``World Trade Atlas''). The source of these values was the Directorate
General of Commercial Intelligence and Statistics of the Indian
Ministry of Commerce and Industry. Below is a listing of surrogate
values that utilized sources other than POR-contemporaneous World Trade
Atlas data.
Blue Field produced (rather than purchased) the fresh mushrooms
which it used in the mushroom canning process during the POR.
Therefore, we valued the inputs which this company used to produce the
fresh mushrooms which were canned during the POR. To value spawn, we
used an average price based on data contained in the 2003-2004
financial reports of Agro Dutch Foods, Ltd. (``Agro Dutch''), Flex
Foods Ltd. (``Flex Foods'') and Premier Explosives, Ltd. (``Premier
Explosives'') (i.e., three Indian producers of the subject
merchandise). To value cow manure, we averaged data contained in the
above-referenced Flex Foods and Agro Dutch financial reports. To value
rice straw, we used data from the 2003-2004 Premier Explosives
financial report. For soil, we used 2003-2004 price information
obtained from a project report issued in December 2004 by India's
National Bank for Agriculture and Rural Development entitled Integrated
Project on Production and Processing of Button Mushrooms for Export,
available online at: https://www.nabard.org/roles/ms/ap/mushroom.htm.
Blue Field produced all of the cans which it used to sell preserved
mushrooms to the U.S. market during the POR. Therefore, for can-making
materials, we valued tin plate using January 2002-December 2002 average
Indian import values from World Trade Atlas, and we valued copper
conducting wire using January 2003-December 2003 average Indian import
values from
[[Page 42037]]
World Trade Atlas, as its useable form is consumed in the production of
cans.
Because there is insufficient evidence on the record to account for
the factors involved in recovering the resulting scrap, we did not
apply a scrap offset. Parties requesting a byproduct offset have the
burden of presenting to the Department not only evidence that the
generated byproduct is sold or re-used in the production of the subject
merchandise, but also all the information necessary for the Department
to incorporate such offsets into the margin calculation. In this
instance, however, Blue Field did not provide evidence that post-
production copper wire scrap was sold or re-used. Moreover, Blue Field
did not provide either the complete set of factors necessary for the
reworking of the scrap copper wire into a useable form, nor did it
provide an attempt at a valuation for such factors. As a result of
these considerations, we preliminarily determine that Blue Field did
not meet its burden of adequately documenting the claimed byproduct
offset and, as a result, we did not apply it.
To value salt, we used and inflated an average import price based
on January 2002-December 2003 data contained in World Trade Atlas
because we were unable to obtain a more current value.To value water we
used January 2003 data available on the Maharastra Industrial
Development Corporation's website and was used in the Final
Determination of Sales at Less Than Fair Value: Fresh Garlic from the
People's Republic of China, 70 FR 34082-34086 (June 13, 2005). We used
data contained in the 2002-2003 financial report of Flex Foods to
calculate and inflate a POR value for super phosphate.
We valued labor based on a regression-based wage rate, in
accordance with 19 CFR 351.408(c)(3). See Expected Wages of Selected
Non-market Economy Countries, from the Import Administration website
at: https://ia.ita.doc.gov/wages/.
To value electricity, we used 2000 Indian price data from the
International Energy Agency's (``IEA'') report, ``Electricity Prices
for Industry,'' contained in the 2002 Key World Energy Statistics from
the IEA. To value steam coal, we used February 2004-July 2004 Indian
import data from World Trade Atlas, and added an amount for loading and
additional transportation charges associated with delivering coal to
the factory based on June 1999 Indian price data contained in the
periodical Business Line.
To value factory overhead and selling, general, and administrative
(``SG&A'') expenses, and profit, we used the 2003-2004 financial
reports of Agro Dutch and Flex Foods, both Indian producers of the
subject merchandise.
In accordance with the decision of the Court of Appeals for the
Federal Circuit in Sigma Corp. v. United States, 117 F. 3d 1401 (Fed.
Cir. 1997), we revised our methodology for calculating source-to-
factory surrogate freight for those material inputs that are valued,
based all or in part, on CIF import values in the surrogate country.
Therefore, we have added to CIF surrogate values from India a surrogate
freight cost using the shorter of the reported distances from either
the closest PRC port of importation to the factory, or from the
domestic supplier to the factory on an input-specific basis.
Preliminary Results of the Review
We preliminarily determine that the following margin exists during
the period February 1, 2004, through July 31, 2004:
------------------------------------------------------------------------
Manufacturer/producer/exporter Margin Percent
------------------------------------------------------------------------
Blue Field (Sichuan) Food Industrial Co., Ltd........ 0.00
------------------------------------------------------------------------
We will disclose the calculations used in our analysis to the
parties to this proceeding within five days of the date of publication
of this notice. Any interested party may request a hearing within 30
days of publication of this notice. Any hearing, if requested, will be
held on September 12, 2005.
Interested parties who wish to request a hearing or to participate
if one is requested, must submit a written request to the Assistant
Secretary for Import Administration, Room B-099, within 30 days of the
date of publication of this notice. Requests should contain: (1) the
party's name, address, and telephone number; (2) the number of
participants; and (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
case briefs and rebuttal briefs. Case briefs from interested parties
may be submitted no later than August 22, 2005. Rebuttal briefs,
limited to issues raised in the case briefs, will be due no later than
August 29, 2005. Parties who submit case briefs or rebuttal briefs in
this proceeding are requested to submit with each argument (1) a
statement of the issue; and (2) a brief summary of the argument.
Parties are also encouraged to provide a summary of the arguments not
to exceed five pages and a table of statutes, regulations, and cases
cited.
The Department will issue the final results of the review,
including the results of its analysis of issues raised in any such
written briefs or at the hearing, if held, not later than 90 days after
the date of issuance of the preliminary results.
Assessment Rates
Upon issuing the final results of the review, the Department shall
determine, and CBP shall assess and liquidate, antidumping duties on
all appropriate entries. The Department will issue appropriate
appraisement instructions for the company subject to this review
directly to CBP within 15 days of publication of the final results of
this review. Pursuant to 19 CFR 351.212(b)(1), we will calculate
importer-specific ad valorem duty assessment rates based on the ratio
of the total amount of the dumping margins calculated for the examined
sales to the total entered value of those same sales. 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
Upon completion of this review, we will require cash deposits at
the rate established in the final results as further described below.
Bonding will no longer be permitted to fulfill security
requirements for shipments of mushrooms from the PRC produced and
exported by Blue Field that are entered, or withdrawn from warehouse,
for consumption on or after the publication date of the final results
of the new shipper review. The following cash deposit requirements will
be effective upon publication of the final results of this review for
all shipments of subject merchandise from Blue Field entered, or
withdrawn from warehouse, for consumption on or after the publication
date: (1) for subject merchandise manufactured and exported by Blue
Field, no cash deposit will be required if the cash deposit rate
calculated in the final results is zero or de minimis; (2) for subject
merchandise exported by Blue Field but not manufactured by Blue Field,
the cash deposit rate will continue to be the PRC-wide rate (i.e.,
198.63 percent); and (3) for subject merchandise produced by Blue Field
but not exported by Blue Field, the cash deposit rate will be the rate
applicable to the exporter.
These requirements, when imposed, shall remain in effect until
publication
[[Page 42038]]
of the final results of the next administrative review.
Notification to Importers
This notice 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.
This new shipper review and notice are in accordance with sections
751(a)(2)(B) and 777(i) of the Act and 19 CFR 351.214.
Dated: July 14, 2005.
Susan H. Kuhbach,
Acting Assistant Secretary for Import Administration.
[FR Doc. E5-3906 Filed 7-20-05; 8:45 am]
BILLING CODE: 3510-DS-S