Notice of Preliminary Results of Antidumping Duty Administrative Review: Individually Quick Frozen Red Raspberries from Chile, 44889-44893 [E5-4190]
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Federal Register / Vol. 70, No. 149 / Thursday, August 4, 2005 / Notices
DEPARTMENT OF COMMERCE
International Trade Administration
[A–337–806]
Notice of Preliminary Results of
Antidumping Duty Administrative
Review: Individually Quick Frozen Red
Raspberries from Chile
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
is conducting an administrative review
of the antidumping duty order on
individually quick frozen red
raspberries from Chile. The period of
review is July 1, 2003, through June 30,
2004. This order covers sales of
individually quick frozen red
raspberries with respect to Fruticola
Olmue, S.A.; Santiago Comercio
Exterior Exportaciones Limitada; and
Vital Berry Marketing, S.A.
We preliminarily find that, during the
period of review, sales of individually
quick frozen red raspberries were not
made below normal value. Interested
parties are invited to comment on these
preliminary results. We will issue the
final results not later than 120 days from
the date of publication of this notice.
EFFECTIVE DATE: August 4, 2005.
FOR FURTHER INFORMATION CONTACT: Cole
Kyle, Yasmin Bordas, or Scott Holland,
AD/CVD Operations, Office 1, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington DC 20230;
telephone (202) 482–1503, (202) 482–
3813, or (202) 482–1279, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On July 9, 2002, the Department of
Commerce (‘‘Department’’) published an
antidumping duty order on individually
quick frozen (‘‘IQF’’) red raspberries
from Chile. (See 67 FR 45460). On July
1, 2004, the Department published a
notice of ‘‘Opportunity to Request
Administrative Review’’ of this order.
(See 69 FR 39903). On July 30, 2004, we
received a timely filed request for
review of 52 companies from the Pacific
Northwest Berry Association, Lynden,
Washington, and each of its individual
members, Curt Maberry Farm, Enfield
Farms, Inc., Maberry Packing, and Rader
Farms, Inc. (collectively, ‘‘the
petitioners’’). We received similar
requests for review from Fruticola
Olmue, S.A. (‘‘Olmue’’); Santiago
Comercio Exterior Exportaciones, Ltda.
(‘‘SANCO’’); Vital Berry Marketing, S.A.
(‘‘VBM’’); Valles Andinos, S.A. (‘‘Valles
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Andinos’’); and Alimentos y Frutos and
affiliate Vita Food, S.A. (‘‘Alifrut’’).1 On
August 30, 2004, we initiated an
administrative review of the 52
companies. (See 69 FR 52857). The
period of review (‘‘POR’’) is July 1,
2003, through June 30, 2004.
On November 17, 2004, Alifrut
withdrew its request for review. On
November 18, 2004, the Department
determined that it was not practicable to
make individual antidumping duty
findings for each of the 52 companies
involved in this administrative review.
Therefore, we selected the following
four companies as respondents in this
review: Olmue, SANCO, VBM, and
Valles Andinos. See Memorandum to
Susan Kuhbach, ‘‘Individually Quick
Frozen Red Raspberries from Chile:
Respondent Selection,’’ dated November
18, 2004, which is on file in the Central
Records Unit (‘‘CRU’’) in room B–099 in
the main Department building.
On November 18, 2004, the
Department issued antidumping duty
questionnaires to Olmue, SANCO, VBM,
and Valles Andinos. As a result of
certain below cost sales being
disregarded in the previous applicable
segment of the proceeding, we
instructed Olmue to respond to the cost
questionnaire. (For further details, see
the ‘‘Cost of Production’’ section,
below.) On November 29, 2004, the
petitioners withdrew their request for
review for all companies for which they
had requested an administrative review.
On December 1, 2004, the petitioners
submitted a revision to correct a
typographical error made in the
November 29, 2004, submission. On
December 7, 2004, Valles Andinos
withdrew its request for review. On
December 17, 2004, we rescinded the
administrative review with respect to
the requested companies, except Olmue,
SANCO, and VBM (collectively, ‘‘the
respondents’’), in accordance with 19
CFR 351.213(d)(1). (See 69 FR 75511.)
We received questionnaire responses
from the respondents in December 2004
and January 2005. We issued
supplemental questionnaires to the
respondents in January and March 2005.
We issued additional supplemental
questionnaires to Olmue in June 2005
and July 2005. We received timely filed
responses.
On February 14, 2005, the Department
published in the Federal Register an
extension of the time limit for the
completion of the preliminary results of
this review until no later than July 29,
2005, in accordance with section
751(a)(3)(A) of the Tariff Act of 1930, as
1 These five companies were also included in the
petitioners’ request for review of 52 companies.
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amended (‘‘the Act’’), and 19 CFR
351.213(h)(2). (See 70 FR 7472.)
We conducted verification of VBM’s
sales from April 18 through April 22,
2005. (For further details, see the
‘‘Verification’’ section, below.)
Scope of the Order
The products covered by this order
are imports of individually quick frozen
(‘‘IQF’’) whole or broken red raspberries
from Chile, with or without the addition
of sugar or syrup, regardless of variety,
grade, size or horticulture method (e.g.,
organic or not), the size of the container
in which packed, or the method of
packing. The scope of the order
excludes fresh red raspberries and block
frozen red raspberries (i.e., puree,
straight pack, juice stock, and juice
concentrate).
The merchandise subject to this order
is currently classifiable under
subheading 0811.20.2020 of the
Harmonized Tariff Schedule of the
United States (‘‘HTSUS’’). Although the
HTSUS subheading is provided for
convenience and customs purposes, the
written description of the merchandise
under the order is dispositive.
Verification
As provided in section 782(i) of the
Act, during April 2005, we verified the
information provided by VBM in Chile
using standard verification procedures,
including examination of relevant sales
and financial records, and selection of
original documentation containing
relevant information. The Department
reported its findings on June 29, 2005.
See Memorandum to the File,
‘‘Verification Report - VBM’’ dated June
29, 2005. This report is on file in the
Department’s CRU.
Fair Value Comparisons
To determine whether sales of IQF red
raspberries from Chile to the United
States were made at less than normal
value, we compared export price (‘‘EP’’)
to normal value (‘‘NV’’), as described in
the ‘‘Export Price’’ and ‘‘Normal Value’’
sections of this notice. In accordance
with 19 CFR 351.414(c)(2), we
compared individual EPs to weighted–
average NVs, which were calculated in
accordance with section 777A(d)(2) of
the Act.
Product Comparisons
In accordance with section 771(16) of
the Act, we considered all products sold
by the respondents in the comparison
market covered by the description in the
‘‘Scope of the Order’’ section, above, to
be foreign–like products for purposes of
determining appropriate product
comparisons to U.S. sales. In accordance
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with section 773(a)(1)(C)(ii) of the Act,
in order to determine whether there was
a sufficient volume of sales in the home
market to serve as a viable basis for
calculating NV, we compared the
respondents’ volume of home market
sales of the foreign–like product to the
volume of their U.S. sales of the subject
merchandise. (For further details, see
the ‘‘Normal Value’’ section, below.)
We compared U.S. sales to monthly
weighted–average prices of
contemporaneous sales made in the
comparison market. Where there were
no sales of identical merchandise in the
comparison market made in the
ordinary course of trade, we compared
U.S. sales to sales of the most similar
foreign like product made in the
ordinary course of trade. Where there
were no sales of identical or similar
merchandise made in the ordinary
course of trade in the comparison
market, we compared U.S. sales to
constructed value (‘‘CV’’). In making
product comparisons, consistent with
our determination in the original
investigation, we matched foreign like
products based on the physical
characteristics reported by the
respondent in the following order:
grade, variety, form, cultivation method,
and additives (see Notice of Preliminary
Determination of Sales at Less than Fair
Value and Postponement of Final
Determination: IQF Red Raspberries
from Chile, 66 FR 67510, 67511
(December 31, 2001)).
Export Price
For sales to the United States, we
calculated EP, in accordance with
section 772(a) of the Act, because the
merchandise was sold prior to
importation by the exporter or producer
outside the United States to the first
unaffiliated purchaser in the United
States, and because constructed export
price methodology was not otherwise
warranted. We based EP on the packed,
Free on Board (‘‘FOB’’) plus Duty Paid,
Delivered Duty Paid (‘‘DDP’’), or Cost
and Freight (‘‘C&F’’) price to unaffiliated
purchasers in the United States. We
adjusted the reported gross unit price,
where applicable, for rebates and billing
adjustments. We also made deductions
for movement expenses in accordance
with section 772(c)(2)(A) of the Act.
These deductions included, where
appropriate, domestic inland freight,
brokerage and handling, pre–sale
warehousing expenses, international
freight, U.S. customs duties, and other
U.S. transportation expenses. To
calculate EP, we relied upon the data
submitted by the respondents.
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Normal Value
A. Home Market Viability
In order to determine whether there
was a sufficient volume of sales in the
home market to serve as a viable basis
for calculating NV, we compared each
respondent’s volume of home market
sales of the foreign like product to its
volume of U.S. sales of the subject
merchandise, in accordance with
section 773(a)(1)(C) of the Act.
Olmue and SANCO reported that their
home market sales of IQF red
raspberries during the POR were less
than five percent of their sales of IQF
red raspberries in the United States.
Therefore, Olmue and SANCO did not
have viable home markets for purposes
of calculating NV. Olmue reported that
France was its largest third country
market, and SANCO reported that the
United Kingdom was its largest third
country market. In both instances, sales
to the third countries exceed five
percent of sales to the United States.
Accordingly, for purposes of calculating
NV, Olmue reported its sales to France,
and SANCO reported its sales to the
United Kingdom.
VBM reported that its home market
sales of IQF red raspberries during the
POR were more than five percent of its
sales of IQF red raspberries in the
United States. Therefore, VBM’s home
market was viable for purposes of
calculating NV. Accordingly, VBM
reported its home market sales for
purposes of calculating NV.
B. Sales to Affiliated Customers
VBM made sales in the home market
to affiliated customers. To test whether
these sales were made at arm’s length,
we compared the starting prices of sales
to the affiliated customer to those of
unaffiliated customers, net of all
movement charges, selling expenses,
discounts, and packing. Where the price
to the affiliated party was, on average,
within a range of 98 to 102 percent of
the price of the same or comparable
merchandise to the unaffiliated parties,
we determined that the sales made to
the affiliated party were at arm’s length.
See Modification Concerning Affiliated
Party Sales in the Comparison Market,
67 FR 69186 (November 15, 2002). In
accordance with the Department’s
practice, sales to affiliated parties were
only included in our margin analysis if
the sales were made at arm’s length.
C. Cost of Production
As discussed in the ‘‘Background’’
section above, there were reasonable
grounds to believe or suspect that
Olmue made sales of the subject
merchandise in its comparison market
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at prices below the cost of production
(‘‘COP’’) within the meaning of section
773(b) of the Act. Therefore, for Olmue,
we used the calculated COP to test for
below cost sales.
In accordance with section
773(b)(2)(A)(i) of the Act, we did not
conduct a sales below cost inquiry for
the other respondents because the
Department did not have reason to
believe or suspect that either respondent
made below cost sales. Moreover, the
Department did not receive an
allegation that either respondent made
below cost sales.
1. Calculation of COP
In accordance with section 773(b)(3)
of the Act, we calculated the cost of
production (‘‘COP’’) based on the sum of
the cost of materials and fabrication for
the foreign like product, plus amounts
for general and administrative (‘‘G&A’’)
expenses, financial expenses, and
comparison market packing costs, where
appropriate. See infra ‘‘Test of
Comparison Market Sales Prices’’ for a
discussion of the treatment of
comparison market selling expenses. We
relied on the respondent’s information
as submitted, except for adjustments to
Olmue’s fixed and variable overhead
expenses due to calculation errors by
the respondent. See Memorandum to
Neal Harper, Director, Office of
Accounting, ‘‘Cost of Production and
Constructed Value Calculation
Adjustments for the Preliminary
Results–Fruticola Olmue S.A.’’ dated
July 28, 2005.
2. Test of Comparison Market Prices
For Olmue, on a product–specific
basis, we compared the adjusted
weighted–average COP to the
comparison market sales of the foreign
like product during the POR, as required
under section 773(b) of the Act, in order
to determine whether sales had been
made at prices below the COP. The
prices were exclusive of any applicable
billing adjustments, movement
expenses, direct selling expenses,
commissions, indirect selling expenses,
and packing expenses. In determining
whether to disregard comparison market
sales made at prices below the COP, we
examined, in accordance with sections
773(b)(1)(A) and (B) of the Act, whether
such sales were made (1) within an
extended period of time in substantial
quantities, and (2) at prices which did
not permit the recovery of costs within
a reasonable period of time.
3. Results of the COP Test
Pursuant to section 773(b)(1) of the
Act, where less than 20 percent of a
respondent’s sales of a given product
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during the POR were at prices less than
the COP, we do not disregard any below
cost sales of that product, because we
determine that, in such instances, the
below cost sales were not made in
‘‘substantial quantities.’’ Where 20
percent or more of a respondent’s sales
of a given product are at prices less than
the COP, we determine that the below
cost sales represent ‘‘substantial
quantities’’ within an extended period
of time, in accordance with section
773(b)(1)(A) of the Act. In such cases,
we also determine whether such sales
were made at prices which would not
permit recovery of all costs within a
reasonable period of time, in accordance
with section 773(b)(1)(B) of the Act.
We found that, for Olmue, for certain
specific products, more than 20 percent
of the comparison market sales were at
prices less than the COP, and the below
cost sales were made within an
extended period of time in substantial
quantities. In addition, these sales were
made at prices that did not provide for
the recovery of costs within a reasonable
period of time. We therefore excluded
these sales and used the remaining
sales, if any, as the basis for determining
NV, in accordance with section
773(b)(1) of the Act.
For U.S. sales of subject merchandise
for which there were no comparable
comparison market sales in the ordinary
course of trade (e.g., sales that passed
the cost test), we compared those sales
to CV, in accordance with section
773(a)(4) of the Act.
D. Calculation of Constructed Value
Section 773(a)(4) of the Act provides
that where NV cannot be based on
comparison–market sales, NV may be
based on CV. Accordingly, when sales
of comparison products could not be
found, either because there were no
sales of a comparable product or all
sales of the comparable products failed
the COP test, we based NV on CV.
In accordance with sections 773(e)(1)
and (e)(2)(A) of the Act, we calculated
CV based on the sum of the cost of
materials and fabrication for the subject
merchandise, plus amounts for selling
expenses, G&A expenses, financial
expenses, profit, and U.S. packing costs.
We made the same adjustments to the
CV costs as described in the
‘‘Calculation of COP’’ section of this
notice. In accordance with section
773(e)(2)(A) of the Act, we based selling
expenses, G§A expenses, and profit on
the amounts incurred and realized by
the respondent in connection with the
production and sale of the foreign like
product in the ordinary course of trade
for consumption in the foreign country.
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E. Level of Trade
Section 773(a)(1)(B)(i) of the Act
states that, to the extent practicable, the
Department will calculate NV based on
sales at the same level of trade (‘‘LOT’’)
as the EP. Sales are made at different
LOTs if they are made at different
marketing stages (or their equivalent).
See 19 CFR 351.412(c)(2). Substantial
differences in selling activities are a
necessary, but not sufficient, condition
for determining that there is a difference
in the stages of marketing. Id.; see also
Notice of Final Determination of Sales
at Less Than Fair Value: Certain Cut–toLength Carbon Steel Plate From South
Africa, 62 FR 61731, 61732 (November
19, 1997). In order to determine whether
the comparison sales were at different
stages in the marketing process than the
U.S. sales, we reviewed the distribution
system in each market (i.e., the ‘‘chain
of distribution’’),2 including selling
functions,3 class of customer (‘‘customer
category’’), and the level of selling
expenses for each type of sale.
Pursuant to section 773(a)(1)(B)(i) of
the Act, in identifying levels of trade for
EP and comparison market sales (i.e.,
NV based on either comparison market
or third country prices4), we consider
the starting prices before any
adjustments. When the Department is
unable to match U.S. sales to sales of the
foreign like product in the comparison
market at the same LOT as the EP, the
Department may compare the U.S. sale
to sales at a different LOT in the
comparison market. In comparing EP
sales at a different LOT in the
comparison market, where available
data make it practicable, we make an
LOT adjustment under section
773(a)(7)(A) of the Act.
Olmue
Olmue reported a single channel of
distribution and a single LOT in each
market and claimed that its sales in both
markets were at the same LOT.
2 The marketing process in the United States and
comparison market begins with the producer and
extends to the sale to the final user or customer.
The chain of distribution between the two may have
many or few links, and the respondents’ sales occur
somewhere along this chain. In performing this
evaluation, we considered each respondent’s
narrative response to properly determine where in
the chain of distribution the sale occurs.
3 Selling functions associated with a particular
chain of distribution help us to evaluate the level(s)
of trade in a particular market. For purposes of
these preliminary results, we have organized the
common selling functions into four major
categories: sales process and marketing support,
freight and delivery, inventory and warehousing,
and quality assurance/warranty services.
4 Where NV is based on CV, we determine the NV
LOT based on the LOT of the sales from which we
derive selling expenses, G&A and profit for CV,
where possible.
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Therefore, Olmue did not request an
LOT adjustment.
We examined the information
reported by Olmue regarding its
marketing processes for its comparison
market and U.S. sales, including
customer categories and the type and
level of selling activities performed.
Olmue reported that it sold to end–users
in the third country and to traders,
distributors, retailers and end users in
the United States. In both markets,
Olmue reported similar selling activities
regardless of the customer category.
Thus, we preliminarily find that Olmue
sold at a single LOT in the comparison
and U.S. markets.
Moreover, sales in both markets were
direct shipments to customers from the
plant. Therefore, there were no
differences in the channels of
distribution between the two markets.
Olmue also did not grant rebates or
discounts, provide technical services or
post–sale warehousing, or incur
advertising expenses in either the third
country or U.S. market. Therefore, we
preliminarily find that Olmue’s sales in
the comparison and U.S. markets were
made at the same LOT.
SANCO
SANCO reported a single LOT in the
comparison and U.S. markets, and
claimed that the LOT in each of these
markets was the same. Therefore,
SANCO did not request an LOT
adjustment.
We examined the information
reported by SANCO regarding its
marketing processes for its comparison
market and U.S. sales, including
customer categories and the type and
level of selling activities performed.
SANCO reported two channels of
distribution in the U.S. market. In the
U.S. market, channel one, the customer
pays for the international freight. In the
U.S. market, channel two, SANCO pays
for the international freight. In both
channels of distribution, SANCO is
always responsible for the inland freight
expenses to the port in Chile. Also,
SANCO is always the importer of record
and, therefore, pays all applicable
customs duties. SANCO sells to the
same customer types in both channels of
distribution. Except for the differences
regarding the payment of international
freight, there are no differences in the
selling activities for these two channels
of distribution. Therefore, we
preliminarily find that there is a single
LOT in the U.S. market.
SANCO has reported one channel of
distribution for sales to its third country
market. In this channel, SANCO’s
customer is the importer of record, and
is responsible for all customs duties.
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SANCO is responsible for the inland
freight expenses to the port in Chile.
The international freight is also paid by
SANCO. Because SANCO has reported
no variation in the selling activities for
these sales, we preliminarily find that
there is a single LOT in SANCO’s third
country market.
Comparing sales in SANCO’s two
markets, there is no indication that there
were significantly different selling
activities or sales process activities.
SANCO also did not grant rebates or
discounts, provide technical services or
post–sale warehousing, or incur
advertising expenses on either U.S. or
third country sales.
Therefore, we preliminarily find that
a single LOT exists in both the U.S. and
third country markets, and that
SANCO’s sales in the U.S. and third
country markets were made at the same
LOT.
VBM
VBM reported two channels of
distribution in the U.S. market, and
three channels of distribution in the
home market. However, because the
selling functions do not differ
significantly between these channels,
VBM is not claiming an LOT
adjustment.
We examined the information
reported by VBM regarding its
marketing processes for its home market
and U.S. sales, including customer
categories and the types and levels of
selling activities performed. VBM
reported two channels of distribution in
the U.S. market. In the U.S. market,
channel one, VBM’s product is
transported from the processing plant to
the cold storage warehouse before being
transported to the port of shipment. In
the U.S. market, channel two, VBM’s
sales are transported directly from the
processing plant to the port for
shipment. VBM reports that there are no
pricing differences between these two
channels of distribution. In both
channels of distribution, VBM is always
responsible for the inland freight to the
port in Chile. VBM is also always the
importer of record and, therefore, pays
all applicable customs duties. VBM sells
to the same types of customer in both
channels of distribution. Except for
small differences regarding
transportation of the product from the
processing plant to the cold storage
warehouse, there are no differences in
the selling activities for these two
channels of distribution. Therefore, we
preliminarily find that there is a single
LOT in the U.S. market.
VBM has reported three channels of
distribution for its home market sales. In
the home market, channel one, VBM’s
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product is transported from the
processing plant to the cold storage
warehouse, and is picked up directly
from the warehouse by the customer. In
the home market, channel two, VBM’s
product is transported from the
warehouse to the cold storage
warehouse, and is then delivered by
VBM to the customer. In the home
market, channel three, VBM’s product is
picked up by the customer at the
processing plant. Because VBM has not
reported substantial differences in the
selling activities for these three
channels, we preliminarily find that
there is a single LOT in VBM’s home
market.
Comparing sales in VBM’s two
markets, there is no indication that there
were significantly different selling
activities or sales process activities.
Although VBM did grant rebates for a
few U.S. sales, it did not provide
technical services or post–sale
warehousing, or incur advertising
expenses on either U.S. or home market
sales.
Therefore, we preliminarily find that
a single LOT exists in both the U.S. and
home markets, and that VBM’s sales in
the U.S. and home markets were made
at the same LOT.
F. Calculation of Normal Value Based
on Comparison Market Prices
We calculated NV based on FOB and
C&F prices to unaffiliated customers in
the comparison markets. We made
adjustments for billing adjustments,
where appropriate and, in accordance
with section 773(a)(6)(B)(ii) of the Act,
we made deductions for movement
expenses. These included domestic
inland freight, pre–sale warehousing
expenses, international freight, marine
insurance, third country brokerage and
handling, third country duties, and
third country inland freight, where
applicable. In addition, we made
adjustments under section
773(a)(6)(C)(iii) of the Act and 19 CFR
351.410 for differences in circumstances
of sale for imputed credit expenses, and
other direct selling expenses, where
appropriate. For Olmue, we also made
adjustments, where appropriate, for
indirect selling expenses incurred in the
comparison market or the United States
where commissions were granted on
sales in one market but not in the other
(the commission offset), in accordance
with 19 CFR 351.410(e).
Furthermore, we made adjustments
for differences in costs attributable to
differences in the physical
characteristics of the merchandise (the
‘‘DIFMER’’ adjustment), where
applicable, in accordance with section
773(a)(6)(C)(ii) of the Act and 19 CFR
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351.411. We also deducted comparison
market packing costs and added U.S.
packing costs in accordance with
section 773(a)(6)(A) and (B) of the Act.
To calculate NV, we relied upon the
data submitted by the respondents.
G.Calculation of Normal Value Based
on Constructed Value
For price–to-CV comparisons, we
made adjustments to CV in accordance
with section 773(a)(8) of the Act. We
made adjustments to CV for differences
in circumstances of sale in accordance
with section 773(a)(6)(C)(iii) of the Act
and 19 CFR 351.410. In addition, we
added U.S. packing costs.
Currency Conversion
We made currency conversions in
accordance with section 773A(a) of the
Act based on the exchange rates in effect
on the date of the U.S. sale as reported
by the Federal Reserve Bank.
Preliminary Results of Review
We preliminarily find the following
weighted–average dumping margins:
Exporter/manufacturer
Fruticola Olmue, S.A. ...
Santiago Comercio Exterior Exportaciones,
Ltda. ..........................
Vital Berry, S.A. ............
Weighted–average
margin percentage
0.09 (de minimis)
0.00
0.00
Assessment Rates and Cash Deposit
Requirements
Pursuant to 19 CFR 351.212(b), the
Department calculates an assessment
rate for each importer of the subject
merchandise for each respondent. Upon
issuance of the final results of this
administrative review, if any importer–
specific assessment rates calculated in
the final results are above de minimis
(i.e., at or above 0.5 percent), the
Department will issue appraisement
instructions directly to U.S. Customs
and Border Protection (‘‘CBP’’) to assess
antidumping duties on appropriate
entries.
To determine whether the duty
assessment rates covering the period
were de minimis, in accordance with
the requirement set forth in 19 CFR
351.106(c)(2), for each respondent we
calculate importer (or customer)-specific
ad valorem rates by aggregating the
dumping margins calculated for all U.S.
sales to that importer (or customer) and
dividing this amount by the total value
of the sales to that importer (or
customer). Where an importer (or
customer)-specific ad valorem rate is
greater than de minimis, and the
respondent has reported reliable entered
values, we apply the assessment rate to
E:\FR\FM\04AUN1.SGM
04AUN1
Federal Register / Vol. 70, No. 149 / Thursday, August 4, 2005 / Notices
the entered value of the importer’s/
customer’s entries during the review
period. Where an importer (or
customer)-specific ad valorem rate is
greater than de minimis and we do not
have entered values, we calculate a per–
unit assessment rate by aggregating the
dumping duties due for all U.S. sales to
each importer (or customer) and
dividing this amount by the total
quantity sold to that importer (or
customer).
The Department will issue
appropriate assessment instructions
directly to CBP within 15 days of
publication of the final results of this
review.
The following deposit requirements
will be effective upon publication of the
final results of this administrative
review for all shipments of IQF red
raspberries from Chile entered, or
withdrawn from warehouse, for
consumption on or after the publication
date, as provided for by section
751(a)(1) of the Act: (1) the cash deposit
rates for the reviewed companies will be
the rate established in the final results
of this review, except if a rate is less
than 0.50 percent, and therefore, de
minimis within the meaning of 19 CFR
351.106(c)(1), in which case the cash
deposit rate will be zero; (2) if the
exporter is not a firm covered in this
review, but was covered in a previous
review or the original LTFV
investigation, the cash deposit rate will
continue to be the company–specific
rate published for the most recent
period; (3) if the exporter is not a firm
covered in this review, the previous
review, or the original investigation, but
the manufacturer is, the cash deposit
rate will be the rate established for the
most recent period for the manufacturer
of the merchandise; and (4) the cash
deposit rate for all other manufacturers
and/or exporters of this merchandise,
shall be 6.33 percent, the ‘‘all others’’
rate established in Notice of Amended
final Determination of Sales at Less than
Fair Value: IQF Red Raspberries from
Chile, 67 FR 40270 (June 12, 2002).
These requirements, when imposed,
shall remain in effect until publication
of the final results of the next
administrative review.
Public Comment
Any interested party may request a
hearing within 30 days of publication of
this notice. A hearing, if requested, will
be held 37 days after the publication of
this notice, or the first business day
thereafter. Interested parties may submit
case briefs within 30 days of the date of
publication of this notice. Rebuttal
briefs, which must be limited to issues
raised in the case briefs, may be filed
VerDate jul<14>2003
16:23 Aug 03, 2005
Jkt 205001
not later than 35 days after the date of
publication of this notice. The
Department will issue the final results
of this administrative review, which
will include the results of its analysis of
issues raised in any such comments,
within 120 days of publication of the
preliminary results.
Notification to Importers
This notice also serves as a
preliminary reminder to importers of
their responsibility under 19 CFR
351.402(f) 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.
We are issuing and publishing these
results in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: July 28, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E5–4190 Filed 8–3–05; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–588–046]
Polychloroprene Rubber from Japan;
Continuation of Antidumping Duty
Order
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: As a result of the
determinations by the Department of
Commerce (‘‘the Department’’) and the
International Trade Commission (‘‘ITC’’)
that revocation of the antidumping duty
order on polychloroprene rubber from
Japan would likely lead to continuation
or recurrence of dumping and material
injury to an industry in the United
States, the Department is publishing this
notice of continuation of this
antidumping duty order.
EFFECTIVE DATE: August 4, 2005.
FOR FURTHER INFORMATION CONTACT:
Martha V. Douthit or Dana Mermelstein,
AD/CVD Operations, Office 6, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, N.W., Washington, DC 20230;
telephone: (202) 482–5050 or (202) 482–
1391, respectively.
AGENCY:
PO 00000
Frm 00011
Fmt 4703
Sfmt 4703
44893
SUPPLEMENTARY INFORMATION:
Scope of the Order
Merchandise covered by this
antidumping duty order is shipments of
polychloroprene rubber, an oil resistant
synthetic rubber also known as
polymerized chlorobutadiene or
neoprene, currently classifiable under
items 4002.42.00, 4002.49.00,
4003.00.00, 4462.15.21 and 4462.00.00
of the Harmonized Tariff Schedule of
the United States (‘‘HTSUS’’). Although
the HTSUS item numbers are provided
for convenience and customs purposes.
The written description remains
dispositive.
Background
On July 1, 2004, the Department
initiated and the ITC instituted sunset
reviews of the antidumping duty order
on polychloroprene rubber from Japan,
pursuant to section 751(c) of the Tariff
Act of 1930, as amended (‘‘the Act’’).1
As a result of its review, the Department
found that revocation of the
antidumping duty order would likely
lead to continuation or recurrence of
dumping, and notified the ITC of the
magnitude of the margins likely to
prevail were the order to be revoked.2
On July 21, 2005, the ITC determined,
pursuant to section 751(c) of the Act,
that revocation of the antidumping duty
order on polychloroprene rubber from
Japan would likely lead to continuation
or recurrence of material injury to an
industry in the United States within a
reasonably foreseeable time.3
Determination
As a result of the determinations by
the Department and the ITC that
revocation of the antidumping duty
order would likely lead to continuation
or recurrence of dumping and material
injury to an industry in the United
States, pursuant to section 751(d)(2) of
the Act, the Department hereby orders
the continuation of the antidumping
duty order on polychloroprene rubber
from Japan. U.S. Customs and Border
Protection (‘‘CBP’’) will continue to
collect antidumping duty cash deposits
at the rates in effect at the time of entry
for all imports of subject merchandise.
The effective date of continuation of
this order will be the date of publication
1 See Initiation of Five-Year (‘‘Sunset’’) Reviews,
69 FR 39905 (July 1, 2004), and Polychloroprene
Rubber from Japan, Investigation No. AA 1921-129
(Second Review), 69 FR 39961 (July 1, 2004).
2 See Polychloroprene Rubber from Japan; Final
Results of Expedited Sunset Review of Antidumping
Duty Finding, 69 FR 64276 (November 11, 2004).
3 See USITC Publication 3786 (June 2005) and
Polychloroprene Rubber from Japan, Investigation
No. AA1921-129 (Second Review) 70 FR 42101
(July 21, 2005).
E:\FR\FM\04AUN1.SGM
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Agencies
[Federal Register Volume 70, Number 149 (Thursday, August 4, 2005)]
[Notices]
[Pages 44889-44893]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4190]
[[Page 44889]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-337-806]
Notice of Preliminary Results of Antidumping Duty Administrative
Review: Individually Quick Frozen Red Raspberries from Chile
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce is conducting an administrative
review of the antidumping duty order on individually quick frozen red
raspberries from Chile. The period of review is July 1, 2003, through
June 30, 2004. This order covers sales of individually quick frozen red
raspberries with respect to Fruticola Olmue, S.A.; Santiago Comercio
Exterior Exportaciones Limitada; and Vital Berry Marketing, S.A.
We preliminarily find that, during the period of review, sales of
individually quick frozen red raspberries were not made below normal
value. Interested parties are invited to comment on these preliminary
results. We will issue the final results not later than 120 days from
the date of publication of this notice.
EFFECTIVE DATE: August 4, 2005.
FOR FURTHER INFORMATION CONTACT: Cole Kyle, Yasmin Bordas, or Scott
Holland, AD/CVD Operations, Office 1, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW, Washington DC 20230; telephone
(202) 482-1503, (202) 482-3813, or (202) 482-1279, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 9, 2002, the Department of Commerce (``Department'')
published an antidumping duty order on individually quick frozen
(``IQF'') red raspberries from Chile. (See 67 FR 45460). On July 1,
2004, the Department published a notice of ``Opportunity to Request
Administrative Review'' of this order. (See 69 FR 39903). On July 30,
2004, we received a timely filed request for review of 52 companies
from the Pacific Northwest Berry Association, Lynden, Washington, and
each of its individual members, Curt Maberry Farm, Enfield Farms, Inc.,
Maberry Packing, and Rader Farms, Inc. (collectively, ``the
petitioners''). We received similar requests for review from Fruticola
Olmue, S.A. (``Olmue''); Santiago Comercio Exterior Exportaciones,
Ltda. (``SANCO''); Vital Berry Marketing, S.A. (``VBM''); Valles
Andinos, S.A. (``Valles Andinos''); and Alimentos y Frutos and
affiliate Vita Food, S.A. (``Alifrut'').\1\ On August 30, 2004, we
initiated an administrative review of the 52 companies. (See 69 FR
52857). The period of review (``POR'') is July 1, 2003, through June
30, 2004.
---------------------------------------------------------------------------
\1\ These five companies were also included in the petitioners'
request for review of 52 companies.
---------------------------------------------------------------------------
On November 17, 2004, Alifrut withdrew its request for review. On
November 18, 2004, the Department determined that it was not
practicable to make individual antidumping duty findings for each of
the 52 companies involved in this administrative review. Therefore, we
selected the following four companies as respondents in this review:
Olmue, SANCO, VBM, and Valles Andinos. See Memorandum to Susan Kuhbach,
``Individually Quick Frozen Red Raspberries from Chile: Respondent
Selection,'' dated November 18, 2004, which is on file in the Central
Records Unit (``CRU'') in room B-099 in the main Department building.
On November 18, 2004, the Department issued antidumping duty
questionnaires to Olmue, SANCO, VBM, and Valles Andinos. As a result of
certain below cost sales being disregarded in the previous applicable
segment of the proceeding, we instructed Olmue to respond to the cost
questionnaire. (For further details, see the ``Cost of Production''
section, below.) On November 29, 2004, the petitioners withdrew their
request for review for all companies for which they had requested an
administrative review. On December 1, 2004, the petitioners submitted a
revision to correct a typographical error made in the November 29,
2004, submission. On December 7, 2004, Valles Andinos withdrew its
request for review. On December 17, 2004, we rescinded the
administrative review with respect to the requested companies, except
Olmue, SANCO, and VBM (collectively, ``the respondents''), in
accordance with 19 CFR 351.213(d)(1). (See 69 FR 75511.)
We received questionnaire responses from the respondents in
December 2004 and January 2005. We issued supplemental questionnaires
to the respondents in January and March 2005. We issued additional
supplemental questionnaires to Olmue in June 2005 and July 2005. We
received timely filed responses.
On February 14, 2005, the Department published in the Federal
Register an extension of the time limit for the completion of the
preliminary results of this review until no later than July 29, 2005,
in accordance with section 751(a)(3)(A) of the Tariff Act of 1930, as
amended (``the Act''), and 19 CFR 351.213(h)(2). (See 70 FR 7472.)
We conducted verification of VBM's sales from April 18 through
April 22, 2005. (For further details, see the ``Verification'' section,
below.)
Scope of the Order
The products covered by this order are imports of individually
quick frozen (``IQF'') whole or broken red raspberries from Chile, with
or without the addition of sugar or syrup, regardless of variety,
grade, size or horticulture method (e.g., organic or not), the size of
the container in which packed, or the method of packing. The scope of
the order excludes fresh red raspberries and block frozen red
raspberries (i.e., puree, straight pack, juice stock, and juice
concentrate).
The merchandise subject to this order is currently classifiable
under subheading 0811.20.2020 of the Harmonized Tariff Schedule of the
United States (``HTSUS''). Although the HTSUS subheading is provided
for convenience and customs purposes, the written description of the
merchandise under the order is dispositive.
Verification
As provided in section 782(i) of the Act, during April 2005, we
verified the information provided by VBM in Chile using standard
verification procedures, including examination of relevant sales and
financial records, and selection of original documentation containing
relevant information. The Department reported its findings on June 29,
2005. See Memorandum to the File, ``Verification Report - VBM'' dated
June 29, 2005. This report is on file in the Department's CRU.
Fair Value Comparisons
To determine whether sales of IQF red raspberries from Chile to the
United States were made at less than normal value, we compared export
price (``EP'') to normal value (``NV''), as described in the ``Export
Price'' and ``Normal Value'' sections of this notice. In accordance
with 19 CFR 351.414(c)(2), we compared individual EPs to weighted-
average NVs, which were calculated in accordance with section
777A(d)(2) of the Act.
Product Comparisons
In accordance with section 771(16) of the Act, we considered all
products sold by the respondents in the comparison market covered by
the description in the ``Scope of the Order'' section, above, to be
foreign-like products for purposes of determining appropriate product
comparisons to U.S. sales. In accordance
[[Page 44890]]
with section 773(a)(1)(C)(ii) of the Act, in order to determine whether
there was a sufficient volume of sales in the home market to serve as a
viable basis for calculating NV, we compared the respondents' volume of
home market sales of the foreign-like product to the volume of their
U.S. sales of the subject merchandise. (For further details, see the
``Normal Value'' section, below.)
We compared U.S. sales to monthly weighted-average prices of
contemporaneous sales made in the comparison market. Where there were
no sales of identical merchandise in the comparison market made in the
ordinary course of trade, we compared U.S. sales to sales of the most
similar foreign like product made in the ordinary course of trade.
Where there were no sales of identical or similar merchandise made in
the ordinary course of trade in the comparison market, we compared U.S.
sales to constructed value (``CV''). In making product comparisons,
consistent with our determination in the original investigation, we
matched foreign like products based on the physical characteristics
reported by the respondent in the following order: grade, variety,
form, cultivation method, and additives (see Notice of Preliminary
Determination of Sales at Less than Fair Value and Postponement of
Final Determination: IQF Red Raspberries from Chile, 66 FR 67510, 67511
(December 31, 2001)).
Export Price
For sales to the United States, we calculated EP, in accordance
with section 772(a) of the Act, because the merchandise was sold prior
to importation by the exporter or producer outside the United States to
the first unaffiliated purchaser in the United States, and because
constructed export price methodology was not otherwise warranted. We
based EP on the packed, Free on Board (``FOB'') plus Duty Paid,
Delivered Duty Paid (``DDP''), or Cost and Freight (``C&F'') price to
unaffiliated purchasers in the United States. We adjusted the reported
gross unit price, where applicable, for rebates and billing
adjustments. We also made deductions for movement expenses in
accordance with section 772(c)(2)(A) of the Act. These deductions
included, where appropriate, domestic inland freight, brokerage and
handling, pre-sale warehousing expenses, international freight, U.S.
customs duties, and other U.S. transportation expenses. To calculate
EP, we relied upon the data submitted by the respondents.
Normal Value
A. Home Market Viability
In order to determine whether there was a sufficient volume of
sales in the home market to serve as a viable basis for calculating NV,
we compared each respondent's volume of home market sales of the
foreign like product to its volume of U.S. sales of the subject
merchandise, in accordance with section 773(a)(1)(C) of the Act.
Olmue and SANCO reported that their home market sales of IQF red
raspberries during the POR were less than five percent of their sales
of IQF red raspberries in the United States. Therefore, Olmue and SANCO
did not have viable home markets for purposes of calculating NV. Olmue
reported that France was its largest third country market, and SANCO
reported that the United Kingdom was its largest third country market.
In both instances, sales to the third countries exceed five percent of
sales to the United States. Accordingly, for purposes of calculating
NV, Olmue reported its sales to France, and SANCO reported its sales to
the United Kingdom.
VBM reported that its home market sales of IQF red raspberries
during the POR were more than five percent of its sales of IQF red
raspberries in the United States. Therefore, VBM's home market was
viable for purposes of calculating NV. Accordingly, VBM reported its
home market sales for purposes of calculating NV.
B. Sales to Affiliated Customers
VBM made sales in the home market to affiliated customers. To test
whether these sales were made at arm's length, we compared the starting
prices of sales to the affiliated customer to those of unaffiliated
customers, net of all movement charges, selling expenses, discounts,
and packing. Where the price to the affiliated party was, on average,
within a range of 98 to 102 percent of the price of the same or
comparable merchandise to the unaffiliated parties, we determined that
the sales made to the affiliated party were at arm's length. See
Modification Concerning Affiliated Party Sales in the Comparison
Market, 67 FR 69186 (November 15, 2002). In accordance with the
Department's practice, sales to affiliated parties were only included
in our margin analysis if the sales were made at arm's length.
C. Cost of Production
As discussed in the ``Background'' section above, there were
reasonable grounds to believe or suspect that Olmue made sales of the
subject merchandise in its comparison market at prices below the cost
of production (``COP'') within the meaning of section 773(b) of the
Act. Therefore, for Olmue, we used the calculated COP to test for below
cost sales.
In accordance with section 773(b)(2)(A)(i) of the Act, we did not
conduct a sales below cost inquiry for the other respondents because
the Department did not have reason to believe or suspect that either
respondent made below cost sales. Moreover, the Department did not
receive an allegation that either respondent made below cost sales.
1. Calculation of COP
In accordance with section 773(b)(3) of the Act, we calculated the
cost of production (``COP'') based on the sum of the cost of materials
and fabrication for the foreign like product, plus amounts for general
and administrative (``G&A'') expenses, financial expenses, and
comparison market packing costs, where appropriate. See infra ``Test of
Comparison Market Sales Prices'' for a discussion of the treatment of
comparison market selling expenses. We relied on the respondent's
information as submitted, except for adjustments to Olmue's fixed and
variable overhead expenses due to calculation errors by the respondent.
See Memorandum to Neal Harper, Director, Office of Accounting, ``Cost
of Production and Constructed Value Calculation Adjustments for the
Preliminary Results-Fruticola Olmue S.A.'' dated July 28, 2005.
2. Test of Comparison Market Prices
For Olmue, on a product-specific basis, we compared the adjusted
weighted-average COP to the comparison market sales of the foreign like
product during the POR, as required under section 773(b) of the Act, in
order to determine whether sales had been made at prices below the COP.
The prices were exclusive of any applicable billing adjustments,
movement expenses, direct selling expenses, commissions, indirect
selling expenses, and packing expenses. In determining whether to
disregard comparison market sales made at prices below the COP, we
examined, in accordance with sections 773(b)(1)(A) and (B) of the Act,
whether such sales were made (1) within an extended period of time in
substantial quantities, and (2) at prices which did not permit the
recovery of costs within a reasonable period of time.
3. Results of the COP Test
Pursuant to section 773(b)(1) of the Act, where less than 20
percent of a respondent's sales of a given product
[[Page 44891]]
during the POR were at prices less than the COP, we do not disregard
any below cost sales of that product, because we determine that, in
such instances, the below cost sales were not made in ``substantial
quantities.'' Where 20 percent or more of a respondent's sales of a
given product are at prices less than the COP, we determine that the
below cost sales represent ``substantial quantities'' within an
extended period of time, in accordance with section 773(b)(1)(A) of the
Act. In such cases, we also determine whether such sales were made at
prices which would not permit recovery of all costs within a reasonable
period of time, in accordance with section 773(b)(1)(B) of the Act.
We found that, for Olmue, for certain specific products, more than
20 percent of the comparison market sales were at prices less than the
COP, and the below cost sales were made within an extended period of
time in substantial quantities. In addition, these sales were made at
prices that did not provide for the recovery of costs within a
reasonable period of time. We therefore excluded these sales and used
the remaining sales, if any, as the basis for determining NV, in
accordance with section 773(b)(1) of the Act.
For U.S. sales of subject merchandise for which there were no
comparable comparison market sales in the ordinary course of trade
(e.g., sales that passed the cost test), we compared those sales to CV,
in accordance with section 773(a)(4) of the Act.
D. Calculation of Constructed Value
Section 773(a)(4) of the Act provides that where NV cannot be based
on comparison-market sales, NV may be based on CV. Accordingly, when
sales of comparison products could not be found, either because there
were no sales of a comparable product or all sales of the comparable
products failed the COP test, we based NV on CV.
In accordance with sections 773(e)(1) and (e)(2)(A) of the Act, we
calculated CV based on the sum of the cost of materials and fabrication
for the subject merchandise, plus amounts for selling expenses, G&A
expenses, financial expenses, profit, and U.S. packing costs. We made
the same adjustments to the CV costs as described in the ``Calculation
of COP'' section of this notice. In accordance with section
773(e)(2)(A) of the Act, we based selling expenses, GSec. A expenses,
and profit on the amounts incurred and realized by the respondent in
connection with the production and sale of the foreign like product in
the ordinary course of trade for consumption in the foreign country.
E. Level of Trade
Section 773(a)(1)(B)(i) of the Act states that, to the extent
practicable, the Department will calculate NV based on sales at the
same level of trade (``LOT'') as the EP. Sales are made at different
LOTs if they are made at different marketing stages (or their
equivalent). See 19 CFR 351.412(c)(2). Substantial differences in
selling activities are a necessary, but not sufficient, condition for
determining that there is a difference in the stages of marketing. Id.;
see also Notice of Final Determination of Sales at Less Than Fair
Value: Certain Cut-to-Length Carbon Steel Plate From South Africa, 62
FR 61731, 61732 (November 19, 1997). In order to determine whether the
comparison sales were at different stages in the marketing process than
the U.S. sales, we reviewed the distribution system in each market
(i.e., the ``chain of distribution''),\2\ including selling
functions,\3\ class of customer (``customer category''), and the level
of selling expenses for each type of sale.
---------------------------------------------------------------------------
\2\ The marketing process in the United States and comparison
market begins with the producer and extends to the sale to the final
user or customer. The chain of distribution between the two may have
many or few links, and the respondents' sales occur somewhere along
this chain. In performing this evaluation, we considered each
respondent's narrative response to properly determine where in the
chain of distribution the sale occurs.
\3\ Selling functions associated with a particular chain of
distribution help us to evaluate the level(s) of trade in a
particular market. For purposes of these preliminary results, we
have organized the common selling functions into four major
categories: sales process and marketing support, freight and
delivery, inventory and warehousing, and quality assurance/warranty
services.
---------------------------------------------------------------------------
Pursuant to section 773(a)(1)(B)(i) of the Act, in identifying
levels of trade for EP and comparison market sales (i.e., NV based on
either comparison market or third country prices\4\), we consider the
starting prices before any adjustments. When the Department is unable
to match U.S. sales to sales of the foreign like product in the
comparison market at the same LOT as the EP, the Department may compare
the U.S. sale to sales at a different LOT in the comparison market. In
comparing EP sales at a different LOT in the comparison market, where
available data make it practicable, we make an LOT adjustment under
section 773(a)(7)(A) of the Act.
---------------------------------------------------------------------------
\4\ Where NV is based on CV, we determine the NV LOT based on
the LOT of the sales from which we derive selling expenses, G&A and
profit for CV, where possible.
---------------------------------------------------------------------------
Olmue
Olmue reported a single channel of distribution and a single LOT in
each market and claimed that its sales in both markets were at the same
LOT. Therefore, Olmue did not request an LOT adjustment.
We examined the information reported by Olmue regarding its
marketing processes for its comparison market and U.S. sales, including
customer categories and the type and level of selling activities
performed. Olmue reported that it sold to end-users in the third
country and to traders, distributors, retailers and end users in the
United States. In both markets, Olmue reported similar selling
activities regardless of the customer category. Thus, we preliminarily
find that Olmue sold at a single LOT in the comparison and U.S.
markets.
Moreover, sales in both markets were direct shipments to customers
from the plant. Therefore, there were no differences in the channels of
distribution between the two markets. Olmue also did not grant rebates
or discounts, provide technical services or post-sale warehousing, or
incur advertising expenses in either the third country or U.S. market.
Therefore, we preliminarily find that Olmue's sales in the comparison
and U.S. markets were made at the same LOT.
SANCO
SANCO reported a single LOT in the comparison and U.S. markets, and
claimed that the LOT in each of these markets was the same. Therefore,
SANCO did not request an LOT adjustment.
We examined the information reported by SANCO regarding its
marketing processes for its comparison market and U.S. sales, including
customer categories and the type and level of selling activities
performed. SANCO reported two channels of distribution in the U.S.
market. In the U.S. market, channel one, the customer pays for the
international freight. In the U.S. market, channel two, SANCO pays for
the international freight. In both channels of distribution, SANCO is
always responsible for the inland freight expenses to the port in
Chile. Also, SANCO is always the importer of record and, therefore,
pays all applicable customs duties. SANCO sells to the same customer
types in both channels of distribution. Except for the differences
regarding the payment of international freight, there are no
differences in the selling activities for these two channels of
distribution. Therefore, we preliminarily find that there is a single
LOT in the U.S. market.
SANCO has reported one channel of distribution for sales to its
third country market. In this channel, SANCO's customer is the importer
of record, and is responsible for all customs duties.
[[Page 44892]]
SANCO is responsible for the inland freight expenses to the port in
Chile. The international freight is also paid by SANCO. Because SANCO
has reported no variation in the selling activities for these sales, we
preliminarily find that there is a single LOT in SANCO's third country
market.
Comparing sales in SANCO's two markets, there is no indication that
there were significantly different selling activities or sales process
activities. SANCO also did not grant rebates or discounts, provide
technical services or post-sale warehousing, or incur advertising
expenses on either U.S. or third country sales.
Therefore, we preliminarily find that a single LOT exists in both
the U.S. and third country markets, and that SANCO's sales in the U.S.
and third country markets were made at the same LOT.
VBM
VBM reported two channels of distribution in the U.S. market, and
three channels of distribution in the home market. However, because the
selling functions do not differ significantly between these channels,
VBM is not claiming an LOT adjustment.
We examined the information reported by VBM regarding its marketing
processes for its home market and U.S. sales, including customer
categories and the types and levels of selling activities performed.
VBM reported two channels of distribution in the U.S. market. In the
U.S. market, channel one, VBM's product is transported from the
processing plant to the cold storage warehouse before being transported
to the port of shipment. In the U.S. market, channel two, VBM's sales
are transported directly from the processing plant to the port for
shipment. VBM reports that there are no pricing differences between
these two channels of distribution. In both channels of distribution,
VBM is always responsible for the inland freight to the port in Chile.
VBM is also always the importer of record and, therefore, pays all
applicable customs duties. VBM sells to the same types of customer in
both channels of distribution. Except for small differences regarding
transportation of the product from the processing plant to the cold
storage warehouse, there are no differences in the selling activities
for these two channels of distribution. Therefore, we preliminarily
find that there is a single LOT in the U.S. market.
VBM has reported three channels of distribution for its home market
sales. In the home market, channel one, VBM's product is transported
from the processing plant to the cold storage warehouse, and is picked
up directly from the warehouse by the customer. In the home market,
channel two, VBM's product is transported from the warehouse to the
cold storage warehouse, and is then delivered by VBM to the customer.
In the home market, channel three, VBM's product is picked up by the
customer at the processing plant. Because VBM has not reported
substantial differences in the selling activities for these three
channels, we preliminarily find that there is a single LOT in VBM's
home market.
Comparing sales in VBM's two markets, there is no indication that
there were significantly different selling activities or sales process
activities. Although VBM did grant rebates for a few U.S. sales, it did
not provide technical services or post-sale warehousing, or incur
advertising expenses on either U.S. or home market sales.
Therefore, we preliminarily find that a single LOT exists in both
the U.S. and home markets, and that VBM's sales in the U.S. and home
markets were made at the same LOT.
F. Calculation of Normal Value Based on Comparison Market Prices
We calculated NV based on FOB and C&F prices to unaffiliated
customers in the comparison markets. We made adjustments for billing
adjustments, where appropriate and, in accordance with section
773(a)(6)(B)(ii) of the Act, we made deductions for movement expenses.
These included domestic inland freight, pre-sale warehousing expenses,
international freight, marine insurance, third country brokerage and
handling, third country duties, and third country inland freight, where
applicable. In addition, we made adjustments under section
773(a)(6)(C)(iii) of the Act and 19 CFR 351.410 for differences in
circumstances of sale for imputed credit expenses, and other direct
selling expenses, where appropriate. For Olmue, we also made
adjustments, where appropriate, for indirect selling expenses incurred
in the comparison market or the United States where commissions were
granted on sales in one market but not in the other (the commission
offset), in accordance with 19 CFR 351.410(e).
Furthermore, we made adjustments for differences in costs
attributable to differences in the physical characteristics of the
merchandise (the ``DIFMER'' adjustment), where applicable, in
accordance with section 773(a)(6)(C)(ii) of the Act and 19 CFR 351.411.
We also deducted comparison market packing costs and added U.S. packing
costs in accordance with section 773(a)(6)(A) and (B) of the Act. To
calculate NV, we relied upon the data submitted by the respondents.
G.Calculation of Normal Value Based on Constructed Value
For price-to-CV comparisons, we made adjustments to CV in
accordance with section 773(a)(8) of the Act. We made adjustments to CV
for differences in circumstances of sale in accordance with section
773(a)(6)(C)(iii) of the Act and 19 CFR 351.410. In addition, we added
U.S. packing costs.
Currency Conversion
We made currency conversions in accordance with section 773A(a) of
the Act based on the exchange rates in effect on the date of the U.S.
sale as reported by the Federal Reserve Bank.
Preliminary Results of Review
We preliminarily find the following weighted-average dumping
margins:
------------------------------------------------------------------------
Weighted-average
Exporter/manufacturer margin percentage
------------------------------------------------------------------------
Fruticola Olmue, S.A................................ 0.09 (de minimis)
Santiago Comercio Exterior Exportaciones, Ltda...... 0.00
Vital Berry, S.A.................................... 0.00
------------------------------------------------------------------------
Assessment Rates and Cash Deposit Requirements
Pursuant to 19 CFR 351.212(b), the Department calculates an
assessment rate for each importer of the subject merchandise for each
respondent. Upon issuance of the final results of this administrative
review, if any importer-specific assessment rates calculated in the
final results are above de minimis (i.e., at or above 0.5 percent), the
Department will issue appraisement instructions directly to U.S.
Customs and Border Protection (``CBP'') to assess antidumping duties on
appropriate entries.
To determine whether the duty assessment rates covering the period
were de minimis, in accordance with the requirement set forth in 19 CFR
351.106(c)(2), for each respondent we calculate importer (or customer)-
specific ad valorem rates by aggregating the dumping margins calculated
for all U.S. sales to that importer (or customer) and dividing this
amount by the total value of the sales to that importer (or customer).
Where an importer (or customer)-specific ad valorem rate is greater
than de minimis, and the respondent has reported reliable entered
values, we apply the assessment rate to
[[Page 44893]]
the entered value of the importer's/customer's entries during the
review period. Where an importer (or customer)-specific ad valorem rate
is greater than de minimis and we do not have entered values, we
calculate a per-unit assessment rate by aggregating the dumping duties
due for all U.S. sales to each importer (or customer) and dividing this
amount by the total quantity sold to that importer (or customer).
The Department will issue appropriate assessment instructions
directly to CBP within 15 days of publication of the final results of
this review.
The following deposit requirements will be effective upon
publication of the final results of this administrative review for all
shipments of IQF red raspberries from Chile entered, or withdrawn from
warehouse, for consumption on or after the publication date, as
provided for by section 751(a)(1) of the Act: (1) the cash deposit
rates for the reviewed companies will be the rate established in the
final results of this review, except if a rate is less than 0.50
percent, and therefore, de minimis within the meaning of 19 CFR
351.106(c)(1), in which case the cash deposit rate will be zero; (2) if
the exporter is not a firm covered in this review, but was covered in a
previous review or the original LTFV investigation, the cash deposit
rate will continue to be the company-specific rate published for the
most recent period; (3) if the exporter is not a firm covered in this
review, the previous review, or the original investigation, but the
manufacturer is, the cash deposit rate will be the rate established for
the most recent period for the manufacturer of the merchandise; and (4)
the cash deposit rate for all other manufacturers and/or exporters of
this merchandise, shall be 6.33 percent, the ``all others'' rate
established in Notice of Amended final Determination of Sales at Less
than Fair Value: IQF Red Raspberries from Chile, 67 FR 40270 (June 12,
2002).
These requirements, when imposed, shall remain in effect until
publication of the final results of the next administrative review.
Public Comment
Any interested party may request a hearing within 30 days of
publication of this notice. A hearing, if requested, will be held 37
days after the publication of this notice, or the first business day
thereafter. Interested parties may submit case briefs within 30 days of
the date of publication of this notice. Rebuttal briefs, which must be
limited to issues raised in the case briefs, may be filed not later
than 35 days after the date of publication of this notice. The
Department will issue the final results of this administrative review,
which will include the results of its analysis of issues raised in any
such comments, within 120 days of publication of the preliminary
results.
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f) 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.
We are issuing and publishing these results in accordance with
sections 751(a)(1) and 777(i)(1) of the Act.
Dated: July 28, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. E5-4190 Filed 8-3-05; 8:45 am]
BILLING CODE 3510-DS-S