Certain Preserved Mushrooms from India: Preliminary Results of Antidumping Duty Administrative Review, 67440-67444 [05-22142]
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67440
Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / Notices
consumption on or after the publication
date, as provided for by section
Producer/Manufacturer/
Weighted–Average 751(a)(2)(C) of the Act: (1) the cash
Exporter
Margin (Percent)
deposit rate for the reviewed company
will be the rate listed in the final results
SVW ..............................
8.04 %
of review (except where the rate for a
particular company is de minimis, i.e.,
Disclosure
less than 0.5 percent, no cash deposit
The Department will disclose
will be required for that company); (2)
calculations performed for these
for previously investigated companies
preliminary results to the parties within not listed above that have separate rate,
five days of the date of publication of
the cash deposit rate will continue to be
this notice in accordance with 19 CFR
the company–specific rate published for
351.224(b). Any interested party may
the most recent period; (3) the cash
request a hearing within 30 days of
deposit rate for all other PRC exporters
publication of these preliminary results. will be 97.86 percent, the current PRC–
See 19 CFR 351.310(c). Any hearing, if
wide rate; and (4) the cash deposit rate
requested, will generally be held two
for all non–PRC exporters will be the
days after the scheduled date for
rate applicable to the PRC exporter that
submission of rebuttal briefs. See 19
supplied that exporter. These deposit
CFR 351.310(d). Interested parties may
requirements, when imposed, shall
submit case briefs and/or written
remain in effect until publication of the
comments no later than 30 days after the final results of the next administrative
date of publication of these preliminary review.
results of review. See 19 CFR
Notification to Importers
351.309(c)(ii). Rebuttal briefs and
rebuttals to written comments, limited
This notice also serves as a
to issues raised in such briefs or
preliminary reminder to importers of
comments, may be filed no later than 37 their responsibility under 19 CFR
days after the date of publication. See 19 351.402(f) to file a certificate regarding
CFR 351.309(d). Further, parties
the reimbursement of antidumping
submitting written comments should
duties prior to liquidation of the
provide the Department with an
relevant entries during this review
additional copy of those comments on
period. Failure to comply with this
diskette. The Department will issue the
requirement could result in the
final results of this administrative
Secretary’s presumption that
review, which will include the results of reimbursement of antidumping duties
its analysis of issues raised in any
occurred and the subsequent assessment
comments, and at a hearing, within 120
of double antidumping duties.
days of publication of these preliminary
We are issuing and publishing these
results, pursuant to section 751(a)(3)(A)
preliminary results of review in
of the Act.
accordance with sections 751(a)(1) and
777(i)(1) of the Act, and 19 CFR
Assessment Rates
Upon issuance of the final results, the 351.221(b).
Dated: October 31, 2005.
Department will determine, and CBP
shall assess, antidumping duties on all
Joseph A. Spetrini,
appropriate entries. Within 15 days of
Acting Assistant Secretary for Import
the completion of this review, the
Administration.
Department will instruct CBP to assess
[FR Doc. 05–22143 Filed 11–4–05; 8:45 am]
antidumping duties on all appropriate
BILLING CODE 3510–DS–S
entries of subject merchandise. The
Department will issue appropriate
assessment instructions directly to CBP
DEPARTMENT OF COMMERCE
upon completion of this review. If these
International Trade Administration
preliminary results are adopted in our
final results of review, we will direct
CBP to assess the resulting rate against
A–533–813
the entered customs value for the
subject merchandise on each importer’s/ Certain Preserved Mushrooms from
India: Preliminary Results of
customer’s entries during the POR.
Antidumping Duty Administrative
Cash–Deposit Requirements
Review
The following cash–deposit
AGENCY: Import Administration,
requirements will be effective upon
International Trade Administration,
publication of the final results of this
Department of Commerce.
administrative review for all shipments
SUMMARY: In response to timely requests
of the subject merchandise entered, or
by Agro Dutch Industries, Ltd. (Agro
withdrawn from warehouse, for
POLYVINYL ALCOHOL FROM THE PRC
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Dutch) and the petitioner,1 the
Department of Commerce (the
Department) is conducting an
administrative review of the
antidumping duty order on certain
preserved mushrooms from India with
respect to Agro Dutch. The period of
review (POR) is February 1, 2004,
through January 31, 2005.
We preliminarily determine that sales
have been made below normal value
(NV). Interested parties are invited to
comment on these preliminary results. If
these preliminary results are adopted in
our final results of administrative
review, we will instruct U.S. Customs
and Border Protection (CBP) to assess
antidumping duties on all appropriate
entries.
EFFECTIVE DATE: November 7, 2005.
FOR FURTHER INFORMATION CONTACT:
David J. Goldberger or Gemal Brangman,
AD/CVD Operations, Office 2, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230;
telephone: (202) 482–4136 or (202) 482–
3773, 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 India (64 FR
8311).
In response to timely requests by a
manufacturer/exporter, Agro Dutch, and
the petitioner, the Department
published a notice of initiation of an
administrative review with respect to
the following companies: Agro Dutch,
Alpine Biotech Ltd. (Alpine Biotech),
Dinesh Agro Products, Ltd. (Dinesh
Agro), Flex Foods, Ltd. (Flex Foods),
Himalya International, Ltd. (Himalya),
KICM (Madras) Ltd. (KICM), Mandeep
Mushrooms Ltd. (Mandeep), Premier
Mushroom Farms (Premier), Saptarishi
Agro Industries Ltd. (Saptarishi Agro),
Transchem Ltd. (Transchem), Techtran
Agro Industries Limited (Techtran) and
Weikfield Agro Products Ltd.
(Weikfield) (70 FR 14643, March 23,
2005). The POR is February 1, 2004,
through January 31, 2005.
On March 29, 2005, the Department
issued antidumping duty questionnaires
to the above–mentioned companies. We
received responses to these
questionnaires during the period May
1 The petitioner is the Coalition for Fair Preserved
Mushroom Trade which includes the following
domestic companies: L.K. Bowman, Inc., Monterey
Mushrooms, Inc., Mushroom Canning Company,
and Sunny Dell Foods, Inc.
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through June 2005 from Agro Dutch,
Flex Foods, Premier, and Himalaya.
In May 2005, the petitioner timely
withdrew its request for review with
respect to KICM, and in June 2005, the
petitioner timely withdrew its request
for review with respect to Alpine
Biotech, Dinesh Agro, Flex Foods,
Himalya, Mandeep, Premier, Saptarishi
Agro, Transchem, Techtran and
Weikfield. Accordingly, we published a
Notice of Partial Rescission of
Antidumping Duty Administrative
Review, 70 FR 40982 (July 15, 2005),
with respect to these companies.
We issued supplemental
questionnaires to Agro Dutch in August
and October 2005, and received
responses in September and October
2005.
On September 29, 2005, the petitioner
submitted comments with respect to the
preliminary results calculations for Agro
Dutch.
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
presalted 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 mushroom, 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.
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
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HTSUS subheadings are provided for
convenience and customs purposes, our
written description of the scope of this
order dispositive.
Fair Value Comparisons
To determine whether sales of certain
preserved mushrooms by the
respondents to the United States were
made at less than normal value (NV), we
compared export price (EP), as
appropriate, to the NV, as described in
the ‘‘Export Price’’ and ‘‘Normal Value’’
sections of this notice.
Pursuant to section 777A(d)(2) of the
Tariff Act of 1930, as amended (the Act),
we compared the EPs of individual U.S.
transactions to the weighted–average
NV of the foreign like product where
there were sales made in the ordinary
course of trade, as discussed in the
‘‘Cost of Production Analysis’’ section
below.
Product Comparisons
In accordance with section 771(16) of
the Act, we considered all products
produced by the respondent 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. We compared Agro Dutch’s
U.S. sales to sales made in the third–
country market within the
contemporaneous window period,
which extends from three months prior
to the U.S. sale until two months after
the sale. Where there were no sales of
identical merchandise in the
comparison market made in the
ordinary course of trade to compare to
U.S. sales, we compared U.S. sales to
sales of the most similar foreign like
product made in the ordinary course of
trade. In making the product
comparisons, we matched foreign like
products based on the physical
characteristics reported by the
respondents in the following order:
preservation method, container type,
mushroom style, weight, container
solution, and label type.
Export Price
We used EP methodology, in
accordance with section 772(a) of the
Act, because the subject merchandise
was sold directly by Agro Dutch to the
first unaffiliated purchaser in the United
States prior to importation and
constructed export price (CEP)
methodology was not otherwise
indicated. We based EP on packed
prices to unaffiliated purchasers in the
United States.
Agro Dutch reported its U.S. sales on
an FOB Indian port, CIF or ex–dock
duty paid basis. We made deductions
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from the starting price, where
appropriate, for international freight,
foreign inland freight, transportation
insurance, foreign and U.S. brokerage
and handling, and U.S. duty, in
accordance with section 772(c)(2) of the
Act and 19 CFR 351.402.
Agro Dutch claimed a freight expense
offset for some of the freight expenses
associated with its export shipments to
the United States and Israel, the third–
country market. Although Agro Dutch
has provided information that appears
to show a direct correlation between
expenses incurred and the offset
payments made by the Indian
government in this review, we did not
make this adjustment because, as we
stated in the previous review (see
Certain Preserved Mushrooms From
India: Preliminary Results of
Antidumping Duty Administrative
Review, 70 FR 10597, 10599 (March 4,
2005)), such an adjustment is not
contemplated by the Act or the
Department’s regulations. Specifically,
the program described by Agro Dutch,
granting an international freight subsidy
from the Indian Agricultural and
Processed Food Products Export
Development Authority for the export of
certain food products, is not contingent
upon importation of inputs used to
produce the exported subject
merchandise – the duty drawback
system contemplated under section
772(c)(1)(B) of the Act. Neither is it
packing (as contemplated under section
772(c)(1)(A) of the Act) nor the amount
of any countervailing duty, as there is
no companion countervailing duty
investigation on certain preserved
mushrooms from India (see section
772(c)(1)(C) of the Act). Accordingly, we
disregarded the claimed amounts.
Agro Dutch reported that, in certain
instances, it provided customers with a
number of extra cardboard cartons to
replace boxes that are damaged during
shipment. The petitioners contend that
these cartons are a free merchandise
discount and that, in the absence of a
reported value, the Department should
deduct the reported packing cost from
the gross unit price. According to our
analysis, it is not clear whether the cost
of these extra boxes is considered a
selling expense, or whether it is already
accounted for in Agro Dutch’s packing
material cost. However, even if we were
to consider the value of the boxes as a
selling expense, the per–unit expense
would be well under 0.33 percent ad
valorem, the Department’s threshold
under 19 CFR 351.413 for insignificant
adjustments (see discussion and
calculation in ‘‘Agro Dutch Preliminary
Results Notes and Margin Calculation,’’
Memorandum to the File dated October
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31, 2005). Therefore, we have
disregarded any adjustment for these
boxes, in accordance with section
777A(a)(2) of the Act and 19 CFR
351.413.
Normal Value
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
respondent’s volume of home market
sales of the foreign like product to the
volume of U.S. sales of the subject
merchandise, in accordance with
section 773(a)(1)(C) of the Act.
We determined that the home market
was not viable for Agro Dutch because
Agro Dutch’s aggregate volume of home
market sales of the foreign like product
was less than five percent of its
aggregate volume of U.S. sales of the
subject merchandise. However, we
determined that the third–country
market of Israel was viable, in
accordance with section 773(a)(1)(B)(ii)
of the Act. Therefore, pursuant to
section 773(a)(1)(C) of the Act, we used
third–country sales as a basis for NV for
Agro Dutch.
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 or CEP. 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
(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 from the U.S. sales, we
reviewed the distribution system in
each market (i.e., the ‘‘chain of
distribution’’), including selling
functions, 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 home market or
third–country prices2), we consider the
starting prices before any adjustments.
2 Where NV is based on constructed value (CV),
we determine the NV LOT based on the LOT of the
sales from which we derive selling expenses and
profit for CV, where possible.
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For CEP sales, we consider only the
selling activities reflected in the price
after the deduction of expenses and
profit under section 772(d) of the Act.
See Micron Technology, Inc. v. United
States, 243 F. 3d 1301, 1314–1315 (Fed.
Cir. 2001).
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 or CEP, the
Department may compare the U.S. sale
to sales at a different LOT in the
comparison market. In comparing EP or
CEP sales at a different LOT in the
comparison market, where available
data make it practicable, and where the
difference affects price comparability,
we make an LOT adjustment under
section 773(a)(7)(A) of the Act. Finally,
for CEP sales only, if an NV LOT is more
remote from the factory than the CEP
LOT and there is no basis for
determining whether the difference in
LOTs between NV and CEP affects price
comparability (i.e., no LOT adjustment
was practicable), the Department shall
grant a CEP offset, as provided in
section 773(a)(7)(B) of the Act. See Plate
from South Africa, 62 FR at 61732–33.
We obtained information from Agro
Dutch regarding the marketing stages
involved in sales to the reported
comparison market and U.S. sales,
including a description of the selling
activities performed for each channel of
distribution. Agro Dutch sold to
importers/distributors through one
channel of distribution in both the U.S.
and Israeli markets. As described in its
questionnaire response, Agro Dutch
performs limited selling activities on
behalf of its U.S. and third country
sales. Furthermore, any selling activities
performed (e.g., sales negotiation and
transportation arrangement) do not vary
by channel of distribution, type of
customer, or market. Therefore, Agro
Dutch’s sales channels are at the same
LOT. Accordingly, all sales comparisons
are at the same LOT for Agro Dutch and
an adjustment pursuant to section
773(a)(7)(A) of the Act is not warranted.
Cost of Production Analysis
In the most recently completed
administrative review as of March 29,
2005, when the questionnaire was
issued (i.e., the 2002–2003 review), we
found that Agro Dutch had made sales
below the cost of production. See Notice
of Final Results of Antidumping Duty
Administrative Review: Certain
Preserved Mushrooms from India, 69 FR
51630 (August 20, 2004). Subsequently,
the Department also disregarded certain
sales made by Agro Dutch in the 2003–
2004 administrative review that were
determined to be below the cost of
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production (see Notice of Final Results
of Antidumping Duty Administrative
Review: Certain Preserved Mushrooms
from India, 70 FR 37757, June 30, 2005).
Thus, in accordance with section
773(b)(2)(A)(ii) of the Act, there are
reasonable grounds to believe or suspect
that Agro Dutch made sales in the third
country at prices below the cost of
producing the merchandise in the
current review period. Accordingly, we
instructed Agro Dutch to respond to the
section D (Cost of Production)
questionnaire.
A. Calculation of Cost of Production
We calculated the cost of production
(COP) on a product–specific basis, based
on the sum of Agro Dutch’s respective
costs of materials and fabrication for the
foreign like product, plus amounts for
selling, general and administrative
(SG&A) expenses, interest expense, and
all expenses incidental to placing the
foreign like product in a condition
packed and ready for shipment in
accordance with section 773(b)(3) of the
Act.
We relied on the COP information
submitted by Agro Dutch, except for the
adjustments discussed below.
1. We revised the material costs for
fresh mushrooms to account for our
revaluation of work–in-process (WIP)
inventory change. Agro Dutch’s reported
fresh mushroom costs incorporated a
WIP adjustment that included costs for
items other than fresh mushrooms.
Based on information in the responses,
we revised the fresh mushroom growing
cost to limit the WIP adjustment to fresh
mushroom–related WIP changes. See
‘‘Cost of Production and Constructed
Value Calculation Adjustments for the
Preliminary Results,’’ Memorandum to
Neal Halper from Trinette Ruffin and
Sheikh M. Hannan dated October 31,
2005 (Preliminary Results COP
Calculation Memo).
2. Agro Dutch calculated the general
and administrative (G&A) and interest
expense ratios using the cost of
manufacture as the denominator. The
Department’s practice, however, is to
rely on the cost of goods sold (COGS) as
the denominator in calculating these
ratios. See, e.g., Notice of Final
Determination of Sales at Less Than
Fair Value and Negative Final
Determination of Critical
Circumstances: Certain Frozen and
Canned Warmwater Shrimp From
Thailand, 69 FR 76918 (December 23,
2004) and accompanying Issues and
Decision Memorandum at Comment 12.
We recalculated the G&A and interest
expense ratios using COGS data derived
from information in Agro Dutch’s
responses. We also recalculated the net
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interest expense ratio to include the
foreign exchange loss on remittance and
prepayment penalty on loans. See
Preliminary Results COP Calculation
Memo.
On a product–specific basis, we
compared Agro Dutch’s weighted–
average COP to the prices of third
country market sales of the foreign like
product, as required by section 773(b) of
the Act, in order to determine whether
these sales were made at prices below
the COP. For purposes of this
comparison, we used COP exclusive of
selling and packing expenses. The
prices (inclusive of interest revenue,
where appropriate) were exclusive of
any applicable billing adjustments,
movement charges, discounts, direct
and indirect selling expenses and
packing. In determining whether to
disregard third country sales made at
prices less than their 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 all costs
within a reasonable period of time.
B. Results of COP Test
Pursuant to section 773(b)(2)(C) of the
Act, where less than 20 percent of the
respondent’s sales of a given product
were at prices less than the COP, we did
not disregard any below–cost sales of
that product because we determined
that the below–cost sales were not made
in ‘‘substantial quantities.’’ Where 20
percent or more of the respondent’s
sales of a given product during the POR
were at prices less than the COP, we
disregarded the below–cost sales
because we determined that they
represented ‘‘substantial quantities’’
within an extended period of time, and
were at prices which would not permit
the recovery of all costs within a
reasonable period of time, in accordance
with section 773(b)(1) of the Act.
The results of our cost test for Agro
Dutch indicated that, for certain
products, more than 20 percent of home
market or third country sales within an
extended period of time were at prices
below COP which would not permit the
full recovery of all costs within a
reasonable period of time. See section
773(b)(2) of the Act. Therefore, in
accordance with section 773(b)(1) of the
Act, we excluded these below–cost sales
from our analysis and used the
remaining sales as the basis for
determining NV.
Price–to-Price Comparisons
We based NV on the price at which
the foreign like product is first sold for
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consumption in the third country
market, in the usual commercial
quantities and in the ordinary course of
trade, and at the same LOT as EP, where
possible, as defined by section
773(a)(1)(B)(ii) of the Act.
Third country prices were based on
FOB Indian port prices. We reduced the
starting price for billing adjustments
and movement expenses, and increased
the starting price for interest revenue,
where appropriate, in accordance with
section 773(a)(6)(B) of the Act and 19
CFR 351.401(c) and (e).
We disregarded Agro Dutch’s claimed
freight expense offset for certain third
country sales granted under the Indian
government program discussed in the
‘‘Export Price’’ section above, because
this type of adjustment to NV is not
contemplated by section 773(a)(6) of the
Act or the Department’s regulations.
We also reduced the starting price for
packing costs incurred in the
comparison market, in accordance with
section 773(a)(6)(B)(i) of the Act, and
increased NV to account for U.S.
packing expenses in accordance with
section 773(a)(6)(A) of the Act. We made
circumstance–of-sale adjustments for
credit expenses and bank fees, where
appropriate, pursuant to section
773(a)(6)(C)(iii) of the Act and 19 CFR
351.410. In addition, we made
adjustments to NV, where appropriate,
for differences in costs attributable to
differences in the physical
characteristics of the merchandise,
pursuant to section 773(a)(6)(C)(ii) of
the Act and 19 CFR 351.411.
Calculation of Constructed Value
We calculated CV in accordance with
section 773(e) of the Act, which states
that CV shall be based on the sum of the
respondent’s cost of materials and
fabrication for the subject merchandise,
plus amounts for SG&A expenses, profit
and U.S. packing costs. We relied on the
submitted CV information except for the
adjustments described above under
‘‘Calculation of Cost of Production.’’
Price–to-Constructed Value
Comparisons
We based NV on CV for comparison
to certain U.S. sales, in accordance with
section 773(a)(4) of the Act. For
comparisons to Agro Dutch’s EP sales,
we made circumstance–of-sale
adjustments by deducting from CV the
weighted–average direct selling
expenses of Agro Dutch’s above–cost
third country sales, and adding to CV
the U.S. direct selling expenses, in
accordance with section 773(a)(8) of the
Act and 19 CFR 351.410.
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67443
Currency Conversion
We made currency conversions in
accordance with section 773A(a) of the
Act based on the exchange rates in effect
on the dates of the U.S. sales as certified
by the Federal Reserve Bank.
Preliminary Results of Review
As a result of this review, we
preliminarily determine that the
weighted–average dumping margin for
the period February 1, 2004, through
January 31, 2005, is as follows:
Manufacturer/Exporter
Agro Dutch Foods, Ltd
Percent Margin
1.59
We will disclose the calculations used
in our analysis to parties to this
proceeding within five days of the
publication date of this notice. See 19
CFR 351.224(b). Any interested party
may request a hearing within 30 days of
publication. See 19 CFR 351.310(c). If
requested, a hearing will be scheduled
after determination of the briefing
schedule.
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 the respective
case briefs. Case briefs from interested
parties and rebuttal briefs, limited to the
issues raised in the respective case
briefs, may be submitted in accordance
with a schedule to be determined.
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 this administrative review,
including the results of its analysis of
issues raised in any written briefs, not
later than 120 days after the date of
publication of this notice, pursuant to
section 751(a)(3)(A) of the Act.
Assessment Rates
The Department shall determine, and
CBP shall assess, antidumping duties on
all appropriate entries, in accordance
with 19 CFR 351.212. The Department
will issue appropriate appraisement
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Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / Notices
instructions for the companies subject to
this review directly to CBP within 15
days of publication of the final results
of this review.
With respect to Agro Dutch, we
intend to calculate importer–specific
assessment rates for the subject
merchandise by aggregating the
dumping margins calculated for all of
the U.S. sales examined and dividing
this amount by the total entered value
of the sales examined. 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 (i.e., at or above 0.50 percent).
See 19 CFR 351.106(c)(1). The final
results of this review shall be the basis
for the assessment of antidumping
duties on entries of merchandise
covered by the final results of this
review and for future deposits of
estimated duties, where applicable.
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.
This administrative review and notice
are published in accordance with
sections 751(a)(1) and 777(i)(1) of the
Act and 19 CFR 351.221.
Dated: October 31, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import
Administration.
[FR Doc. 05–22142 Filed 11–4–05; 8:45 am]
BILLING CODE 3510–DS–S
Cash Deposit Requirements
The following cash deposit
requirements will be effective for all
shipments of the subject merchandise
entered, or withdrawn from warehouse,
for consumption on or after the
publication date of the final results of
this administrative review, as provided
by section 751(a)(1) of the Act: (1) the
cash deposit rate for the reviewed
company will be that established in the
final results of this review, except if the
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) for previously reviewed or
investigated companies not listed above,
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, a prior review, or the original
less–than-fair–value (LTFV)
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 or
exporters will continue to be 11.30
percent, the ‘‘All Others’’ rate made
effective by the LTFV investigation (see
Notice of Amendment of Final
Determination of Sales at Less Than
Fair Value and Antidumping Duty
Order: Certain Preserved Mushrooms
From India, 64 FR 8311 (February 19,
1999)). These requirements, when
imposed, shall remain in effect until
publication of the final results of the
next administrative review.
VerDate Aug<31>2005
16:38 Nov 04, 2005
Jkt 208001
DEPARTMENT OF COMMERCE
International Trade Administration
A–580–813
Stainless Steel Butt–Weld Pipe Fittings
from Korea: Preliminary Results of
Antidumping Duty Administrative
Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request by
Sungkwang Bend Company Ltd. (SKBC),
the Department of Commerce (the
Department) is conducting an
administrative review of the
antidumping duty order of stainless
steel butt–weld pipe fittings from Korea.
The review covers one firm, SKBC. The
period of review (POR) is February 1,
2004, through January 31, 2005.
We preliminarily determine that sales
of stainless steel butt–weld pipe fittings
from Korea have not been made below
normal value (NV) for SKBC. If these
preliminary results are adopted in our
final results of administrative review,
we will instruct Customs and Border
Protection (CBP) to not assess
antidumping duties based on the
difference between constructed export
price (CEP) and NV. Interested parties
are invited to comment on these
preliminary results. Parties who submit
arguments in this proceeding are
requested to also submit: 1) a statement
of the issues, 2) a brief summary of the
argument, and 3) a table of authorities.
EFFECTIVE DATE: November 7, 2005.
AGENCY:
PO 00000
Frm 00035
Fmt 4703
Sfmt 4703
FOR FURTHER INFORMATION CONTACT:
Michael J. Heaney or Robert James, AD/
CVD Operations, Office 7, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Room 7866, Washington,
DC 20230; telephone: (202) 482–4475 or
(202) 482–0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 23, 1993, the Department
published the antidumping duty order
on stainless steel butt weld pipe fittings
from Korea. See Antidumping Duty
Order: Certain Stainless Steel Butt Weld
Pipe Fittings from Korea, 58 FR 11029
(February 23, 1993). On February 28,
2005, SKBC requested an administrative
review of the antidumping duty order
on stainless steel butt- weld pipe fittings
from Korea in response to the
Department’s notice of opportunity to
request a review published in the
Federal Register. The Department
initiated the review for SKBC on March
23, 2005. See Initiation of Antidumping
and Countervailing Duty Administrative
Reviews and Requests for Revocation in
Part, 70 FR 14643 (March 23, 2005).
On March 31, 2005, the Department
issued sections A, B, and C of the
antidumping questionnaire to SKBC.
SKBC filed its response to section A of
our questionnaire on May 9, 2005. On
May 27, 2005, SKBC filed its response
to sections B and C of our questionnaire.
The Department issued a supplemental
questionnaire to SKBC on July 25, 2005.
SKBC filed its response to this
questionnaire on August 16, 2005.
Scope of the Order
The products covered by this order
are certain welded stainless steel butt–
weld pipe fittings (pipe fittings),
whether finished or unfinished, under
14 inches in inside diameter.
Pipe fittings are used to connect pipe
sections in piping systems where
conditions require welded connections.
The subject merchandise can be used
where one or more of the following
conditions is a factor in designing the
piping system: (1) corrosion of the
piping system will occur if material
other than stainless steel is used; (2)
contamination of the material in the
system by the system itself must be
prevented; (3) high temperatures are
present; (4) extreme low temperatures
are present; (5) high pressures are
contained within the system.
Pipe fittings come in a variety of
shapes, and the following five are the
most basic: ‘‘elbows,’’ ‘‘tees,’’
‘‘reducers,’’ ‘‘stub ends,’’ and ‘‘caps.’’
The edges of finished fittings are
E:\FR\FM\07NON1.SGM
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Agencies
[Federal Register Volume 70, Number 214 (Monday, November 7, 2005)]
[Notices]
[Pages 67440-67444]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-22142]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
A-533-813
Certain Preserved Mushrooms from India: Preliminary Results of
Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to timely requests by Agro Dutch Industries, Ltd.
(Agro Dutch) and the petitioner,\1\ the Department of Commerce (the
Department) is conducting an administrative review of the antidumping
duty order on certain preserved mushrooms from India with respect to
Agro Dutch. The period of review (POR) is February 1, 2004, through
January 31, 2005.
---------------------------------------------------------------------------
\1\ The petitioner is the Coalition for Fair Preserved Mushroom
Trade which includes the following domestic companies: L.K. Bowman,
Inc., Monterey Mushrooms, Inc., Mushroom Canning Company, and Sunny
Dell Foods, Inc.
---------------------------------------------------------------------------
We preliminarily determine that sales have been made below normal
value (NV). Interested parties are invited to comment on these
preliminary results. If these preliminary results are adopted in our
final results of administrative review, we will instruct U.S. Customs
and Border Protection (CBP) to assess antidumping duties on all
appropriate entries.
EFFECTIVE DATE: November 7, 2005.
FOR FURTHER INFORMATION CONTACT: David J. Goldberger or Gemal Brangman,
AD/CVD Operations, Office 2, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
4136 or (202) 482-3773, 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 India (64 FR 8311).
In response to timely requests by a manufacturer/exporter, Agro
Dutch, and the petitioner, the Department published a notice of
initiation of an administrative review with respect to the following
companies: Agro Dutch, Alpine Biotech Ltd. (Alpine Biotech), Dinesh
Agro Products, Ltd. (Dinesh Agro), Flex Foods, Ltd. (Flex Foods),
Himalya International, Ltd. (Himalya), KICM (Madras) Ltd. (KICM),
Mandeep Mushrooms Ltd. (Mandeep), Premier Mushroom Farms (Premier),
Saptarishi Agro Industries Ltd. (Saptarishi Agro), Transchem Ltd.
(Transchem), Techtran Agro Industries Limited (Techtran) and Weikfield
Agro Products Ltd. (Weikfield) (70 FR 14643, March 23, 2005). The POR
is February 1, 2004, through January 31, 2005.
On March 29, 2005, the Department issued antidumping duty
questionnaires to the above-mentioned companies. We received responses
to these questionnaires during the period May
[[Page 67441]]
through June 2005 from Agro Dutch, Flex Foods, Premier, and Himalaya.
In May 2005, the petitioner timely withdrew its request for review
with respect to KICM, and in June 2005, the petitioner timely withdrew
its request for review with respect to Alpine Biotech, Dinesh Agro,
Flex Foods, Himalya, Mandeep, Premier, Saptarishi Agro, Transchem,
Techtran and Weikfield. Accordingly, we published a Notice of Partial
Rescission of Antidumping Duty Administrative Review, 70 FR 40982 (July
15, 2005), with respect to these companies.
We issued supplemental questionnaires to Agro Dutch in August and
October 2005, and received responses in September and October 2005.
On September 29, 2005, the petitioner submitted comments with
respect to the preliminary results calculations for Agro Dutch.
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 presalted 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 mushroom, 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.
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,
our written description of the scope of this order dispositive.
Fair Value Comparisons
To determine whether sales of certain preserved mushrooms by the
respondents to the United States were made at less than normal value
(NV), we compared export price (EP), as appropriate, to the NV, as
described in the ``Export Price'' and ``Normal Value'' sections of this
notice.
Pursuant to section 777A(d)(2) of the Tariff Act of 1930, as
amended (the Act), we compared the EPs of individual U.S. transactions
to the weighted-average NV of the foreign like product where there were
sales made in the ordinary course of trade, as discussed in the ``Cost
of Production Analysis'' section below.
Product Comparisons
In accordance with section 771(16) of the Act, we considered all
products produced by the respondent 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.
We compared Agro Dutch's U.S. sales to sales made in the third-country
market within the contemporaneous window period, which extends from
three months prior to the U.S. sale until two months after the sale.
Where there were no sales of identical merchandise in the comparison
market made in the ordinary course of trade to compare to U.S. sales,
we compared U.S. sales to sales of the most similar foreign like
product made in the ordinary course of trade. In making the product
comparisons, we matched foreign like products based on the physical
characteristics reported by the respondents in the following order:
preservation method, container type, mushroom style, weight, container
solution, and label type.
Export Price
We used EP methodology, in accordance with section 772(a) of the
Act, because the subject merchandise was sold directly by Agro Dutch to
the first unaffiliated purchaser in the United States prior to
importation and constructed export price (CEP) methodology was not
otherwise indicated. We based EP on packed prices to unaffiliated
purchasers in the United States.
Agro Dutch reported its U.S. sales on an FOB Indian port, CIF or
ex-dock duty paid basis. We made deductions from the starting price,
where appropriate, for international freight, foreign inland freight,
transportation insurance, foreign and U.S. brokerage and handling, and
U.S. duty, in accordance with section 772(c)(2) of the Act and 19 CFR
351.402.
Agro Dutch claimed a freight expense offset for some of the freight
expenses associated with its export shipments to the United States and
Israel, the third-country market. Although Agro Dutch has provided
information that appears to show a direct correlation between expenses
incurred and the offset payments made by the Indian government in this
review, we did not make this adjustment because, as we stated in the
previous review (see Certain Preserved Mushrooms From India:
Preliminary Results of Antidumping Duty Administrative Review, 70 FR
10597, 10599 (March 4, 2005)), such an adjustment is not contemplated
by the Act or the Department's regulations. Specifically, the program
described by Agro Dutch, granting an international freight subsidy from
the Indian Agricultural and Processed Food Products Export Development
Authority for the export of certain food products, is not contingent
upon importation of inputs used to produce the exported subject
merchandise - the duty drawback system contemplated under section
772(c)(1)(B) of the Act. Neither is it packing (as contemplated under
section 772(c)(1)(A) of the Act) nor the amount of any countervailing
duty, as there is no companion countervailing duty investigation on
certain preserved mushrooms from India (see section 772(c)(1)(C) of the
Act). Accordingly, we disregarded the claimed amounts.
Agro Dutch reported that, in certain instances, it provided
customers with a number of extra cardboard cartons to replace boxes
that are damaged during shipment. The petitioners contend that these
cartons are a free merchandise discount and that, in the absence of a
reported value, the Department should deduct the reported packing cost
from the gross unit price. According to our analysis, it is not clear
whether the cost of these extra boxes is considered a selling expense,
or whether it is already accounted for in Agro Dutch's packing material
cost. However, even if we were to consider the value of the boxes as a
selling expense, the per-unit expense would be well under 0.33 percent
ad valorem, the Department's threshold under 19 CFR 351.413 for
insignificant adjustments (see discussion and calculation in ``Agro
Dutch Preliminary Results Notes and Margin Calculation,'' Memorandum to
the File dated October
[[Page 67442]]
31, 2005). Therefore, we have disregarded any adjustment for these
boxes, in accordance with section 777A(a)(2) of the Act and 19 CFR
351.413.
Normal Value
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 respondent's volume of home market sales of the foreign
like product to the volume of U.S. sales of the subject merchandise, in
accordance with section 773(a)(1)(C) of the Act.
We determined that the home market was not viable for Agro Dutch
because Agro Dutch's aggregate volume of home market sales of the
foreign like product was less than five percent of its aggregate volume
of U.S. sales of the subject merchandise. However, we determined that
the third-country market of Israel was viable, in accordance with
section 773(a)(1)(B)(ii) of the Act. Therefore, pursuant to section
773(a)(1)(C) of the Act, we used third-country sales as a basis for NV
for Agro Dutch.
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 or CEP. 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
(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 from the U.S. sales, we reviewed the
distribution system in each market (i.e., the ``chain of
distribution''), including selling functions, 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 home market or third-country prices\2\), we consider the
starting prices before any adjustments. For CEP sales, we consider only
the selling activities reflected in the price after the deduction of
expenses and profit under section 772(d) of the Act. See Micron
Technology, Inc. v. United States, 243 F. 3d 1301, 1314-1315 (Fed. Cir.
2001).
---------------------------------------------------------------------------
\2\ Where NV is based on constructed value (CV), we determine
the NV LOT based on the LOT of the sales from which we derive
selling expenses and profit for CV, where possible.
---------------------------------------------------------------------------
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
or CEP, the Department may compare the U.S. sale to sales at a
different LOT in the comparison market. In comparing EP or CEP sales at
a different LOT in the comparison market, where available data make it
practicable, and where the difference affects price comparability, we
make an LOT adjustment under section 773(a)(7)(A) of the Act. Finally,
for CEP sales only, if an NV LOT is more remote from the factory than
the CEP LOT and there is no basis for determining whether the
difference in LOTs between NV and CEP affects price comparability
(i.e., no LOT adjustment was practicable), the Department shall grant a
CEP offset, as provided in section 773(a)(7)(B) of the Act. See Plate
from South Africa, 62 FR at 61732-33.
We obtained information from Agro Dutch regarding the marketing
stages involved in sales to the reported comparison market and U.S.
sales, including a description of the selling activities performed for
each channel of distribution. Agro Dutch sold to importers/distributors
through one channel of distribution in both the U.S. and Israeli
markets. As described in its questionnaire response, Agro Dutch
performs limited selling activities on behalf of its U.S. and third
country sales. Furthermore, any selling activities performed (e.g.,
sales negotiation and transportation arrangement) do not vary by
channel of distribution, type of customer, or market. Therefore, Agro
Dutch's sales channels are at the same LOT. Accordingly, all sales
comparisons are at the same LOT for Agro Dutch and an adjustment
pursuant to section 773(a)(7)(A) of the Act is not warranted.
Cost of Production Analysis
In the most recently completed administrative review as of March
29, 2005, when the questionnaire was issued (i.e., the 2002-2003
review), we found that Agro Dutch had made sales below the cost of
production. See Notice of Final Results of Antidumping Duty
Administrative Review: Certain Preserved Mushrooms from India, 69 FR
51630 (August 20, 2004). Subsequently, the Department also disregarded
certain sales made by Agro Dutch in the 2003-2004 administrative review
that were determined to be below the cost of production (see Notice of
Final Results of Antidumping Duty Administrative Review: Certain
Preserved Mushrooms from India, 70 FR 37757, June 30, 2005). Thus, in
accordance with section 773(b)(2)(A)(ii) of the Act, there are
reasonable grounds to believe or suspect that Agro Dutch made sales in
the third country at prices below the cost of producing the merchandise
in the current review period. Accordingly, we instructed Agro Dutch to
respond to the section D (Cost of Production) questionnaire.
A. Calculation of Cost of Production
We calculated the cost of production (COP) on a product-specific
basis, based on the sum of Agro Dutch's respective costs of materials
and fabrication for the foreign like product, plus amounts for selling,
general and administrative (SG&A) expenses, interest expense, and all
expenses incidental to placing the foreign like product in a condition
packed and ready for shipment in accordance with section 773(b)(3) of
the Act.
We relied on the COP information submitted by Agro Dutch, except
for the adjustments discussed below.
1. We revised the material costs for fresh mushrooms to account for
our revaluation of work-in-process (WIP) inventory change. Agro Dutch's
reported fresh mushroom costs incorporated a WIP adjustment that
included costs for items other than fresh mushrooms. Based on
information in the responses, we revised the fresh mushroom growing
cost to limit the WIP adjustment to fresh mushroom-related WIP changes.
See ``Cost of Production and Constructed Value Calculation Adjustments
for the Preliminary Results,'' Memorandum to Neal Halper from Trinette
Ruffin and Sheikh M. Hannan dated October 31, 2005 (Preliminary Results
COP Calculation Memo).
2. Agro Dutch calculated the general and administrative (G&A) and
interest expense ratios using the cost of manufacture as the
denominator. The Department's practice, however, is to rely on the cost
of goods sold (COGS) as the denominator in calculating these ratios.
See, e.g., Notice of Final Determination of Sales at Less Than Fair
Value and Negative Final Determination of Critical Circumstances:
Certain Frozen and Canned Warmwater Shrimp From Thailand, 69 FR 76918
(December 23, 2004) and accompanying Issues and Decision Memorandum at
Comment 12. We recalculated the G&A and interest expense ratios using
COGS data derived from information in Agro Dutch's responses. We also
recalculated the net
[[Page 67443]]
interest expense ratio to include the foreign exchange loss on
remittance and prepayment penalty on loans. See Preliminary Results COP
Calculation Memo.
On a product-specific basis, we compared Agro Dutch's weighted-
average COP to the prices of third country market sales of the foreign
like product, as required by section 773(b) of the Act, in order to
determine whether these sales were made at prices below the COP. For
purposes of this comparison, we used COP exclusive of selling and
packing expenses. The prices (inclusive of interest revenue, where
appropriate) were exclusive of any applicable billing adjustments,
movement charges, discounts, direct and indirect selling expenses and
packing. In determining whether to disregard third country sales made
at prices less than their 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 all costs within a
reasonable period of time.
B. Results of COP Test
Pursuant to section 773(b)(2)(C) of the Act, where less than 20
percent of the respondent's sales of a given product were at prices
less than the COP, we did not disregard any below-cost sales of that
product because we determined that the below-cost sales were not made
in ``substantial quantities.'' Where 20 percent or more of the
respondent's sales of a given product during the POR were at prices
less than the COP, we disregarded the below-cost sales because we
determined that they represented ``substantial quantities'' within an
extended period of time, and were at prices which would not permit the
recovery of all costs within a reasonable period of time, in accordance
with section 773(b)(1) of the Act.
The results of our cost test for Agro Dutch indicated that, for
certain products, more than 20 percent of home market or third country
sales within an extended period of time were at prices below COP which
would not permit the full recovery of all costs within a reasonable
period of time. See section 773(b)(2) of the Act. Therefore, in
accordance with section 773(b)(1) of the Act, we excluded these below-
cost sales from our analysis and used the remaining sales as the basis
for determining NV.
Price-to-Price Comparisons
We based NV on the price at which the foreign like product is first
sold for consumption in the third country market, in the usual
commercial quantities and in the ordinary course of trade, and at the
same LOT as EP, where possible, as defined by section 773(a)(1)(B)(ii)
of the Act.
Third country prices were based on FOB Indian port prices. We
reduced the starting price for billing adjustments and movement
expenses, and increased the starting price for interest revenue, where
appropriate, in accordance with section 773(a)(6)(B) of the Act and 19
CFR 351.401(c) and (e).
We disregarded Agro Dutch's claimed freight expense offset for
certain third country sales granted under the Indian government program
discussed in the ``Export Price'' section above, because this type of
adjustment to NV is not contemplated by section 773(a)(6) of the Act or
the Department's regulations.
We also reduced the starting price for packing costs incurred in
the comparison market, in accordance with section 773(a)(6)(B)(i) of
the Act, and increased NV to account for U.S. packing expenses in
accordance with section 773(a)(6)(A) of the Act. We made circumstance-
of-sale adjustments for credit expenses and bank fees, where
appropriate, pursuant to section 773(a)(6)(C)(iii) of the Act and 19
CFR 351.410. In addition, we made adjustments to NV, where appropriate,
for differences in costs attributable to differences in the physical
characteristics of the merchandise, pursuant to section
773(a)(6)(C)(ii) of the Act and 19 CFR 351.411.
Calculation of Constructed Value
We calculated CV in accordance with section 773(e) of the Act,
which states that CV shall be based on the sum of the respondent's cost
of materials and fabrication for the subject merchandise, plus amounts
for SG&A expenses, profit and U.S. packing costs. We relied on the
submitted CV information except for the adjustments described above
under ``Calculation of Cost of Production.''
Price-to-Constructed Value Comparisons
We based NV on CV for comparison to certain U.S. sales, in
accordance with section 773(a)(4) of the Act. For comparisons to Agro
Dutch's EP sales, we made circumstance-of-sale adjustments by deducting
from CV the weighted-average direct selling expenses of Agro Dutch's
above-cost third country sales, and adding to CV the U.S. direct
selling expenses, in accordance with section 773(a)(8) of the Act and
19 CFR 351.410.
Currency Conversion
We made currency conversions in accordance with section 773A(a) of
the Act based on the exchange rates in effect on the dates of the U.S.
sales as certified by the Federal Reserve Bank.
Preliminary Results of Review
As a result of this review, we preliminarily determine that the
weighted-average dumping margin for the period February 1, 2004,
through January 31, 2005, is as follows:
------------------------------------------------------------------------
Manufacturer/Exporter Percent Margin
------------------------------------------------------------------------
Agro Dutch Foods, Ltd............................... 1.59
------------------------------------------------------------------------
We will disclose the calculations used in our analysis to parties
to this proceeding within five days of the publication date of this
notice. See 19 CFR 351.224(b). Any interested party may request a
hearing within 30 days of publication. See 19 CFR 351.310(c). If
requested, a hearing will be scheduled after determination of the
briefing schedule.
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 the
respective case briefs. Case briefs from interested parties and
rebuttal briefs, limited to the issues raised in the respective case
briefs, may be submitted in accordance with a schedule to be
determined. 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 this administrative
review, including the results of its analysis of issues raised in any
written briefs, not later than 120 days after the date of publication
of this notice, pursuant to section 751(a)(3)(A) of the Act.
Assessment Rates
The Department shall determine, and CBP shall assess, antidumping
duties on all appropriate entries, in accordance with 19 CFR 351.212.
The Department will issue appropriate appraisement
[[Page 67444]]
instructions for the companies subject to this review directly to CBP
within 15 days of publication of the final results of this review.
With respect to Agro Dutch, we intend to calculate importer-
specific assessment rates for the subject merchandise by aggregating
the dumping margins calculated for all of the U.S. sales examined and
dividing this amount by the total entered value of the sales examined.
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
(i.e., at or above 0.50 percent). See 19 CFR 351.106(c)(1). The final
results of this review shall be the basis for the assessment of
antidumping duties on entries of merchandise covered by the final
results of this review and for future deposits of estimated duties,
where applicable.
Cash Deposit Requirements
The following cash deposit requirements will be effective for all
shipments of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the publication date of the
final results of this administrative review, as provided by section
751(a)(1) of the Act: (1) the cash deposit rate for the reviewed
company will be that established in the final results of this review,
except if the 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) for previously reviewed or investigated
companies not listed above, 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, a prior review, or
the original less-than-fair-value (LTFV) 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 or exporters will
continue to be 11.30 percent, the ``All Others'' rate made effective by
the LTFV investigation (see Notice of Amendment of Final Determination
of Sales at Less Than Fair Value and Antidumping Duty Order: Certain
Preserved Mushrooms From India, 64 FR 8311 (February 19, 1999)). These
requirements, when imposed, shall remain in effect until publication of
the final results of the next administrative review.
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.
This administrative review and notice are published in accordance
with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221.
Dated: October 31, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 05-22142 Filed 11-4-05; 8:45 am]
BILLING CODE 3510-DS-S