Honey from Argentina: Preliminary Results and Partial Rescission of Antidumping Duty Administrative Review and Intent Not to Revoke in Part, 76766-76771 [E5-7981]
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76766
Federal Register / Vol. 70, No. 248 / Wednesday, December 28, 2005 / Notices
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(4) grown and exported by XuZhou
Simple, and
(5) grown and exported by Longtai.
See Memoranda to the File titled, ‘‘New
Shipper Initiation Checklist’’ for
Qingdao Camel, Qingdao Saturn,
Qingdao Xiantianfeng, Longtai, and
XuZhou Simple, dated December 20,
2005.
The POR is November 1, 2004,
through October 31, 2005. See 19 CFR
351.214(g)(1)(i)(A). We intend to issue
preliminary results of these reviews no
later than 180 days from the date of
initiation, and final results of these
reviews no later than 270 days from the
date of initiation. See section
751(a)(2)(B)(iv) of the Act.
Because Qingdao Xiantianfeng,
Longtai, and XuZhou Simple have
certified that they grew and exported
the fresh garlic on which they based
their requests for a new shipper review,
we will instruct U.S. Customs and
Border Protection (‘‘CBP’’) to allow, at
the option of the importer, the posting
of a bond or security in lieu of a cash
deposit for each entry of fresh garlic
both grown and exported by Qingdao
Xiantianfeng, Longtai, and XuZhou
Simple, respectively, until the
completion of the new shipper review,
pursuant to section 751(a)(2)(B)(iii) of
the Act.
With respect to Qingdao Camel and
Qingdao Saturn, they have certified that
they exported, but did not grow, the
subject merchandise on which they
based their requests for a new shipper
review. Therefore, until completion of
these new shipper reviews, we will
instruct CBP to allow, at the option of
the importer, the posting of a bond or
security in lieu of a cash deposit for
entries of subject merchandise (1) grown
by Lufeng and exported by Qingdao
Camel, or (2) grown by Taifeng and
exported by Qingdao Saturn. Interested
parties that need access to proprietary
information in this new shipper review
should submit applications for
disclosure under administrative
protective order in accordance with 19
CFR 351.305 and 351.306.
This initiation and notice are in
accordance with section 751(a)(2)(B) of
the Act and 19 CFR 351.214 and
351.221(c)(1)(i).
Dated: December 20, 2005.
Stephen J. Claeys,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E5–7882 Filed 12–27–05; 8:45 am]
BILLING CODE 3510–DS–S
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-357-812]
Honey from Argentina: Preliminary
Results and Partial Rescission of
Antidumping Duty Administrative
Review and Intent Not to Revoke in
Part
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests by
interested parties, the Department of
Commerce (the Department) is
conducting an administrative review of
the antidumping order on honey from
Argentina. The review covers six firms.
The period of review (POR) is December
1, 2003, through November 30, 2004.
We preliminarily determine that sales
of honey from Argentina have been
made below the normal value (NV) in
the case of Asociacion de Cooperativas
Argentinas (ACA). For Seylinco S.A.
(Seylinco), we preliminary find a zero
margin. In addition, we have
preliminarily determined to rescind the
review with respect to Nutrin S.A.
(Nutrin), Radix S.A. (Radix), Compania
Europea Americana S.A. (CEASA), and
HoneyMax S.A. (HoneyMax) because
they had no shipments of subject
merchandise to the United States during
the period of review. 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 based on the
difference between the export price (EP)
and NV. Interested parties are invited to
comment on these preliminary results.
Parties who submit argument in these
proceedings are requested to submit
with the argument: 1) a statement of the
issues, 2) a brief summary of the
argument, and 3) a table of authorities.
EFFECTIVE DATE: December 28, 2005.
FOR FURTHER INFORMATION CONTACT:
Angela Strom for ACA, Brian Sheba for
Seylinco, 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) 482-2704,
(202) 482-0145, or (202) 482-0649,
respectively.
AGENCY:
SUPPLEMENTARY INFORMATION:
Background
On December 10, 2001, the
Department published the antidumping
duty order on honey from Argentina.
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See Notice of Antidumping Duty Order:
Honey from Argentina, 66 FR 63672
(December 10, 2001). On December 1,
2004, the Department published its
opportunity to request a review. See
Antidumping or Countervailing Duty
Order, Finding, or Suspended
Investigation; Opportunity to Request
Administrative Review, 69 FR 69889. On
December 30, 2004, the petitioners1
requested an administrative review of
the antidumping duty order on honey
from Argentina in response to the
Department’s notice of opportunity to
request a review. Petitioners requested
that the Department review entries of
subject merchandise made by 24
Argentine producers/exporters. In
addition, the Department received
individual requests for review from four
Argentine exporters, three of which
were included as part of petitioners’
request for review.2 The Department
initiated the review for all 24 companies
included in petitioners’ request for
review plus El Mana S.A. (El Mana), a
Argentine exporter of honey. See
Initiation of Antidumping and
Countervailing Duty Administrative
Reviews and Request for Revocation in
Part, 70 FR 4818 (January 31, 2005),
corrected in Initiation of Antidumping
and Countervailing Duty Administrative
Reviews and Request for Revocation in
Part, 70 FR 7143 (February 10, 2005).
On February 22, 2005, petitioners
withdrew their request for review with
respect to fifteen of the 24 exporters that
comprised petitioners’ request for
administrative review. On March 3,
2005, El Mana, an exporter not included
in petitioners’ request for review,
submitted a withdrawal of its request for
administrative review. On March 24,
2005, petitioners and Nexco S.A.
(Nexco) submitted a withdrawal of
request for administrative review for
Nexco. On March 31, 2005, petitioners
submitted a withdrawal request for a
further two companies. On April 15,
2005, the Department rescinded its
administrative review for El Mana and
eighteen of the 24 companies in
petitioners’ December 30, 2004, request
for review. See Honey from Argentina:
Notice of Partial Rescission of
Antidumping Duty Administrative
Review, 70 FR 19927 (April 15, 2005).
The following exporters submitted
letters claiming no shipments of the
subject merchandise during the POR:
Nutrin on March 9, 2005; Radix on
March 14, 2005; CEASA on March 14,
1 The petitioners are American Honey Producers
Association and the Sioux Honey Association.
2 The one Argentine exporter not included in
petitioners’ request for review was El Mana S.A. (El
Mana).
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2005; and HoneyMax on March 16,
2005. For further discussion, see the
‘‘Partial Rescission of Review’’ section
of this notice, below.
On February 23, 2005, the Department
issued Sections A, B, and C of the
antidumping questionnaire to all
exporters subject to the review.3 We
received responses on March 29 and
April 22, 2005, for ACA and on March
24 and April 8, 2005, for Seylinco.
The Department issued supplemental
questionnaires for ACA on May 17,
2005, and on May 18, 2005, for
Seylinco. We received responses to
these supplemental questionnaires from
ACA on May 31, 2005, and from
Seylinco on June 1, 2005. On July 8,
2005, petitioners filed comments on
ACA’s questionnaire responses and on
July 13, 2005, ACA filed a response to
petitioners’ comments. On August 2,
2005, the Department issued a second
supplemental questionnaire to ACA. On
August 19, 2005, ACA filed its response
to the Department’s second
supplemental questionnaire. On August
25, 2005, the Department determined a
‘‘particular market situation’’ existed in
Argentina during the POR. See the
discussion of ‘‘Selection of Comparison
Market’’ under ‘‘Normal Value’’ below.
On November 10, 2005, the Department
issued a third supplemental
questionnaire to ACA, which ACA
timely responded to on November 28,
2005.
On July 1, 2005, the Department
extended the time limit for issuance of
the preliminary results of the
administrative review to December 20,
2005. See Honey from Argentina;
Extension of Time Limit for Preliminary
Results of Administrative Review, 70 FR
38102 (July 1, 2005).
Scope of the Review
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The merchandise covered by this
order is honey from Argentina. The
products covered are natural honey,
artificial honey containing more than 50
percent natural honey by weight,
preparations of natural honey
containing more than 50 percent natural
honey by weight, and flavored honey.
The subject merchandise includes all
grades and colors of honey whether in
liquid, creamed, comb, cut comb, or
3 Section A of the questionnaire requests general
information concerning a company’s corporate
structure and business practices, the merchandise
under review that it sells, and the manner in which
it sells that merchandise in all of its markets.
Section B requests a complete listing of all home
market sales, or, if the home market is not viable,
of sales in the most appropriate third-country
market (this section is not applicable to respondents
in non-market economy cases). Section C requests
a complete listing of U.S. sales.
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chunk form, and whether packaged for
retail or in bulk form.
The merchandise covered by this
order is currently classifiable under
subheadings 0409.00.00, 1702.90.90,
and 2106.90.99 of the Harmonized
Tariff Schedule of the United States
(HTSUS). Although the HTSUS
subheadings are provided for
convenience and customs purposes, the
Department’s written description of the
merchandise under this order is
dispositive.
Partial Rescission of Review
As noted above, Nutrin, Radix,
CEASA, and HoneyMax informed the
Department that they did not have
shipments of subject merchandise to the
United States during the POR. We have
confirmed with CBP that these exporters
did not have shipments of subject
merchandise during the POR. Therefore,
in accordance with 19 CFR
351.213(d)(3) and consistent with the
Department’s practice, we are
preliminarily rescinding our review
with respect to Nutrin, Radix, CEASA,
and HoneyMax. See e.g., Frozen
Concentrated Orange Juice from Brazil;
Final Results and Partial Rescission of
Antidumping Duty Administrative
Review, 66 FR 51008, 51009 (October 5,
2001) and Certain Welded Carbon Steel
Pipe and Tube from Turkey; Final
Results and Partial Rescission of
Antidumping Administrative Review, 63
FR 35190, 35191 (June 29, 1998).
Intent Not To Revoke In Part
Section 351.222(e) of the
Department’s regulations requires, inter
alia, that a company requesting
revocation submit the following: (1) a
certification that the company has sold
the subject merchandise at not less than
NV in the current review period and
that the company will not sell at less
than NV in the future; (2) a certification
that the company sold subject
merchandise in commercial quantities
in each of the three years forming the
basis of the receipt of such a request;
and (3) an agreement that the order will
be reinstated if the company is
subsequently found to be selling the
subject merchandise at less than fair
value. In determining whether to revoke
an antidumping duty order in part, the
Department must ascertain that the
party sold merchandise at not less than
normal value (i.e., zero or de minimis
margins) for a period of at least three
consecutive years. See 19 CFR
351.222(b)(2). See, e.g., Oil Country
Tubular Goods From Mexico: Final
Results of Antidumping Duty
Administrative Review and
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Determination Not to Revoke in Part, 66
FR 15832 (March 21, 2001).
On December 27, 2004, ACA
submitted a request for revocation of the
antidumping duty order with the
requisite certifications set forth in 19
CFR 351.222(e). ACA based its request
on the absence of dumping for three
consecutive review periods, that is, the
first, second and current administrative
reviews. The Department found zero
dumping margins in both the first and
second administrative reviews. See
Honey from Argentina: Final Results of
Antidumping Duty Administrative
Review, 70 FR 19926 (April 15, 2005)
and Honey from Argentina: Final
Results of Antidumping Duty
Administrative Review, 69 FR 30283
(May 27, 2004).
In the current administrative review,
we have preliminarily determined a
weighted-average margin of 2.95 percent
for ACA. The margin calculated during
the current review period constitutes
one of the three consecutive reviews
cited by ACA to support its request for
revocation. Consequently, we
preliminarily find that ACA is not
eligible for revocation of the order under
section 351.222(b) of the Department’s
regulations and preliminarily determine
not to revoke the order with respect to
ACA. Furthermore, pursuant to 19 CFR
351.222(d)(1) we have examined ACA’s
shipments over the past three PORs and
have preliminarily determined that ACA
has not shipped in commercial
quantities in each of the three years
forming the basis of the request for
revocation. See Memorandum to
Richard Weible, Director, through
Robert James, Program Manager, from
Angela Strom, Case Analyst: ‘‘Request
by Asociation of Coopertivas Argentinas
(ACA) for Revocation in the
Antidumping Duty Administrative
Review on Honey from Argentina,’’
dated December 20, 2005.
Verification
As provided in section 782(i) of the
Tariff Act of 1930, as amended (the
Tariff Act), we verified sales
information provided by ACA, using
standard verification procedures such as
the examination of relevant sales and
financial records. Our verification
results are outlined in the public and
proprietary versions of our verification
reports, which are on file in the Central
Records Unit (CRU) in room B-099 of
the main Department building. See
ACA’s Sales Verification Report, dated
December 13, 2005.
Product Comparison
In accordance with section 771(16) of
the Tariff Act, we considered all sales of
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honey covered by the description in the
‘‘Scope of the Review’’ section of this
notice, supra, which were sold in the
respective third-country markets during
the POR to be the foreign like product
for the purpose of determining
appropriate product comparisons to
honey sold in the United States. We
matched products based on the physical
characteristics reported by ACA and
Seylinco. Where there were no sales of
identical merchandise in the thirdcountry market to compare to U.S. sales,
we compared U.S. sales to the next most
similar foreign like product on the basis
of the characteristics and reporting
instructions listed in the antidumping
duty questionnaire and instructions, or
to constructed value (CV), as
appropriate.
Level of Trade
In accordance with section
773(a)(1)(B)(i) of the Tariff Act, to the
extent practicable, we determine NV
based on sales in the home market at the
same level of trade (LOT) as EP or the
CEP. The NV LOT is that of the startingprice sales in the home market or, when
NV is based on CV, that of the sales
from which we derive selling, general
and administrative (SG&A) expenses
and profit. For CEP, it is the level of the
constructed sale from the exporter to an
affiliated importer after the deductions
required under section 772(d) of the
Tariff Act. In this review, both ACA and
Seylinco claimed only EP sales.
To determine whether NV sales are at
a different LOT than EP, we examine
stages in the marketing process and
selling functions along the chain of
distribution between the producer and
the unaffiliated customer. If the
comparison market sales are at a
different LOT and the difference affects
price comparability, as manifested in a
pattern of consistent price differences
between the sales on which NV is based
and comparison market sales at the LOT
of the export transaction, we make an
LOT adjustment under section
773(a)(7)(A) of the Tariff Act.
ACA reported two LOTs in the thirdcountry market corresponding to
differing channels of distribution: 1)
sales to packers and 2) sales to
importers. Differing channels of
distribution, alone, do not qualify as
separate LOTs when selling functions
performed for each customer class are
sufficiently similar. See 19 CFR
351.412(c)(2). We found that the selling
functions ACA provided to its reported
channels of distribution in the thirdcountry and U.S. markets were virtually
the same, varying only by the degree to
which testing and warranty services
were provided. We do not find the
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varying degree of testing and warranty
services alone sufficient to determine
the existence of different marketing
stages. See Final Determination of Sales
at Less than Fair Value; Honey from
Argentina, 66 FR 50611 and
accompanying Decision Memo at
Comment 18 (October 4, 2001); Honey
from Argentina: Preliminary Results of
Antidumping Duty Administrative
Review, 69 FR 621 (January 6, 2004).
Thus, we have determined that there is
only one LOT for ACA’s sales to all
markets. See ACA’s Analysis
Memorandum, dated December 20,
2005.
Seylinco reported a single LOT for all
U.S. and third-country sales. Seylinco
claimed that its selling activities in both
markets are identical, although we note
Seylinco sold to two general classes of
customers in both the U.S. and its
comparison market. For Seylinco, we
preliminarily determine that all
reported sales are made at the same
LOT, and we therefore have no need to
make an LOT adjustment. See
Seylinco’s Analysis Memorandum,
dated December 20, 2005.
Transactions Investigated
Section 351.401(i) of the Department’s
regulations states that the Department
normally will use date of invoice, as
recorded in the exporter’s or producer’s
records kept in the ordinary course of
business, as the date of sale, but may
use a date other than the date of invoice
if it better reflects the date on which
material terms of sale are established.
For ACA, the Department, consistent
with its practice, used the reported
shipment date as the date of sale for
both its third-country and U.S. markets
since shipment occurred prior to
invoice date. See Notice of Final
Determinations of Sales at Less than
Fair Value: Certain Durum Wheat and
Hard Red Spring Wheat from Canada,
68 FR 52741 (September 5, 2003), and
accompanying Decision Memo at
Comment 3. For Seylinco, the
Department used the invoice date as the
date of sale for both its comparison and
U.S. market sales.
Export Price and Constructed Export
Price
Section 772(a) of the Tariff Act
defines EP as ‘‘the price at which the
subject merchandise is first sold (or
agreed to be sold) before the date of
importation by the producer or exporter
of subject merchandise outside of the
United States to an unaffiliated
purchaser in the United States or to an
unaffiliated purchaser for exportation to
the United States. . . .,’’ as adjusted
under section 772(c). Section 772(b) of
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the Tariff Act defines CEP as ‘‘the price
at which the subject merchandise is first
sold (or agreed to be sold) in the United
States before or after the date of
importation by or for the account of the
producer or exporter of such
merchandise or by a seller affiliated
with the producer or exporter, to a
purchaser not affiliated with the
producer or exporter. . . .,’’ as adjusted
under sections 772(c) and (d). ACA and
Seylinco have classified their U.S. sales
as EP because all of their sales were
made before the date of importation
directly to unaffiliated purchasers in the
U.S. market. For purposes of these
preliminary results, we have accepted
these classifications.
Normal Value
1. Selection of Comparison Market
In accordance with section
773(a)(1)(C) of the Tariff Act, to
determine whether there was a
sufficient volume of sales in the home
market to serve as a viable basis for
calculating NV (i.e., the aggregate
volume of home market sales of the
foreign like product is greater than or
equal to five percent of the aggregate
volume of U.S. sales), we compare each
company’s aggregate volume of home
market sales of the foreign like product
to its aggregate volume of U.S. sales of
subject merchandise. Because Seylinco
did not have home market sales, we
preliminarily find that Seylinco’s home
market did not provide a viable basis for
calculating NV. ACA, however, did have
home market sales in excess of five
percent of the aggregate volume of U.S.
sales.
Section 773(a)(1)(C)(iii) of the Tariff
Act provides that the Department may
determine that home market sales are
inappropriate as a basis for determining
NV if a particular market situation
would not permit a proper comparison
with EP or CEP. During the first and
second reviews of this order, the
Department found a particular market
situation rendered the Argentine market
inappropriate for the calculation of NV
because of, among other reasons, the
export-oriented nature of the Argentine
honey industry.4 In the first
supplemental questionnaire dated May
17, 2005, the Department asked ACA to
provide further information in order to
4 See Honey from Argentina: Preliminary Results
of Anti-Dumping Duty Administrative Review, 69
FR 621 (January 6, 2004); Honey From Argentina:
Final Results of Antidumping Duty Administrative
Review, 69 FR 30283 (May 27, 2004); Honey from
Argentina: Preliminary Results of Anti-Dumping
Duty Administrative Review, 69 FR 77195
(December 27, 2004); and Honey From Argentina:
Final Results of Antidumping Duty Administrative
Review, 70 FR 19926 (April 15, 2005).
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evaluate the market situation in
Argentina with respect to honey, and on
May 31, 2005, ACA responded to the
Department’s request. ACA states that
the circumstances in this review are the
same as in the first two reviews and that
the Department should find a
‘‘particular market situation’’ in
Argentina.
On August 25, 2005, the Department
determined that a particular market
situation does, in fact, exist with respect
to ACA’s sales of honey in Argentina,
rendering the Argentine market
inappropriate for purposes of
determining NV. See Decision
Memorandum ‘‘Analysis of Particular
Market Place Situation’’ from Angela
Strom through Robert James to Richard
Weible, dated August 25, 2005.
When sales in the home market are
not suitable to serve as the basis for NV,
section 773(a)(1)(B)(ii) of the Tariff Act
provides that sales to a third-country
market may be utilized if (i) the prices
in such market are representative; (ii)
the aggregate quantity of the foreign like
product sold by the producer or
exporter in the third-country market is
five percent or more of the aggregate
quantity of the subject merchandise sold
in or to the United States; and (iii) the
Department does not determine that a
particular market situation in the thirdcountry market prevents a proper
comparison with the U.S. price. ACA
reported France as its largest thirdcountry market during the POR, in
terms of volume of sales (and the
aggregate quantity of such sales is five
percent or more of sales to the United
States). Seylinco reported Germany as
its largest third-country market during
the POR, in terms of volume of sales
(and the aggregate quantity of such sales
is five percent or more of sales to the
United States). See, e.g., Notice of
Preliminary Results of Antidumping
Duty Administrative Review,
Preliminary Determination To Revoke
the Order in Part, and Partial Rescission
of Antidumping Duty Administrative
Review: Fresh Atlantic Salmon From
Chile, 67 FR 51186, 51186 (August 7,
2002) (selecting the largest third-country
market as the basis for NV). The
Department preliminarily determines
that the prices in France and Germany
are representative and no particular
market situation exists that would
prevent a proper comparison to EP. As
a result, for ACA, NV is based on sales
to France and for Seylinco NV is based
on sales to Germany.
In summary, therefore, NV for all
companies is based on third-country
market sales to unaffiliated purchasers
made in commercial quantities and in
the ordinary course of trade. For NV, we
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used the prices at which the foreign like
product was first sold for consumption
in the usual commercial quantities, in
the ordinary course of trade, and, to the
extent possible, at the same LOT as the
EP. We calculated NV as noted in the
‘‘Price-to-Price Comparisons’’ section of
this notice.
2. Cost of Production
The Department disregarded certain
sales made by ACA to its comparison
market at prices below the cost of
producing the subject merchandise
during the investigation. See Notice of
Final Determination of Sales at Less
Than Fair Value; Honey from Argentina,
66 FR 50611 (October 4, 2001) and
Notice of Amended Final Determination
of Sales at Less Than Fair Value; Honey
from Argentina, 66 FR 58434 (Nov 21,
2001) (Final Determination). However,
because we did not find sales below cost
in the most recently completed segment
of this proceeding and because
petitioners made no allegation of sales
below cost in the context of this review,
the Department determined there were
not reasonable grounds to believe or
suspect that ACA made sales in the
comparison market at prices below the
cost of producing the merchandise in
this review. See section 773(b)(2)(A) of
the Tariff Act. As a result, on May 17,
2005, we informed ACA that ACA
would not be required to submit cost
information.
Price-to-Price Comparisons
ACA
We based NV on the third-country
market prices to unaffiliated purchasers.
In accordance with section 773(a)(6)(B)
of the Tariff Act, we made adjustments,
where applicable, for movement
expenses. In accordance with section
773(a)(6)(C) of the Tariff Act, we made
circumstance-of-sale adjustments for
credit and other direct selling expenses,
where appropriate. We note that for
certain claimed direct expenses in the
third-country market, the Department
has re-classified them as indirect for the
reasons outlined in the accompanying
Analysis Memorandum.
As in previous segments of this
proceeding, ACA originally reported
warranty expenses on a customerspecific basis. ACA allocated warranty
claims corresponding to POR sales to
total tons of honey sold to a particular
customer during the POR. In response to
our first request for information, ACA
also submitted transaction-specific
warranty expenses. See Supplemental
Questionnaire Response dated May 31,
2005. In response to our most recent
request for information, ACA reported
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its historical experience for warranties
by market. See Supplemental
Questionnaire Response dated
November 28, 2005.
Notwithstanding ACA’s reporting of
warranty expenses both on a customerspecific and transaction-specific basis,
the Department finds that these
allocation methodologies fail to reflect
the nature and terms of warranty costs
as incurred by ACA, i.e., at the time of
sale, warranty claims for specific
customers or transactions cannot be
known or quantified and the terms for
such claims did not vary from customer
to customer. Indeed, in the less than fair
value investigation involving honey
from Argentina, the Department
recalculated ACA’s warranty expense
over total sales to the market in
question. See Notice of Preliminary
Determination of Sales at Less Than
Fair Value: Honey from Argentina, 66
FR 24108 (May 11, 2001), unchanged in
Notice of Final Determination of Sales
at Less than Fair Value; Honey from
Argentina, 66 FR 50611 (October 4,
2001). In the second administrative
review, the Department accepted ACA’s
reported warranty expenses on a
customer-specific basis. See ACA’s
Sales Verification Report, dated
November 26, 2004,and ACA’s Analysis
Memorandum, dated December 20,
2004. However, based upon our review
of the facts in this case, this is not the
appropriate methodology.
If the warranty terms offered by a
respondent at the time of sale vary
significantly from customer to customer,
a customer-specific allocation of
warranty expenses may be appropriate.
However, as in this case, if the warranty
terms offered by the respondent at the
time of sale are not significantly
different from customer to customer, an
allocation of warranty expenses over
total sales or sales to the market in
question is more reflective of the nature
of the expense and the respondent’s
expectation that its pricing behavior
will allow it to recoup these costs over
time. Furthermore, because warranty
expenses are not incurred until after a
warranty claim has been received from
a customer, can vary greatly from year
to year, and can occur months or years
after the relevant date of sale, the
Department often bases warranty
expenses on historical data rather than
the expenses incurred during a single
POR. (See, e.g., Large Newspaper
Printing Presses and Components
Thereof, Whether Assembled or
Unassembled, From Germany: Final
Results of Antidumping Duty
Administrative Review, 66 FR 11557
(February 26, 2001) and accompanying
Decision Memorandum at Comment 6.)
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Federal Register / Vol. 70, No. 248 / Wednesday, December 28, 2005 / Notices
Based on the foregoing
considerations, we have re-calculated
ACA’s reported warranty expenses. In
order to capture warranty expenses
reflective of ACA’s historical experience
for the market in question, we used
warranty expenditures incurred in that
market in the three most recently
completed fiscal years5 and allocated
those expenses over ACA’s total sales to
that market for the same three-year
period. The resulting ratio which we
applied to the gross unit price for these
Preliminary Results represents a three
year historical average of ACA’s
warranty expenses with respect to the
market in question. In addition, we
revised certain warranty expenses for
the reasons outlined in the
accompanying Analysis Memorandum.
See ACA’s Analysis Memorandum,
dated December 20, 2005.
Seylinco
We based NV on the third-country
prices to unaffiliated purchasers. We
made adjustments, where applicable, for
movement expenses in accordance with
section 773(a)(6)(B) of the Tariff Act.
Where appropriate, we made
circumstance-of-sale adjustments for
credit pursuant to section 773(a)(6)(C) of
the Tariff Act. We also made
adjustments, where applicable, for other
direct selling expenses, in accordance
with section 773(a)(6)(C) of the Tariff
Act. See Seylinco’s Analysis
Memorandum, dated December 20,
2005.
Currency Conversion
wwhite on PROD1PC65 with NOTICES
The Department’s preferred source for
daily exchange rates is the Federal
Reserve Bank. See Preliminary Results
of Antidumping Duty Administrative
Review: Stainless Steel Sheet and Strip
in Coils from France, 68 FR 47049,
47055 (August 7, 2003). However, the
Federal Reserve Bank does not track or
publish exchange rates for the Argentine
peso. Therefore, we made currency
conversions based on the daily
exchange rates from Factiva, a Dow
Jones & Reuters Retrieval Service.
Factiva publishes exchange rates for
Monday through Friday only. We used
the rate of exchange on the most recent
Friday for conversion dates involving
Saturday through Sunday where
necessary.
5 The three most recent fiscal years were chosen
as the calculated time period because this is in
accord with the Department’s standard
questionnaire. Furthermore, the three-year average
is not inconsistent with ACA’s historical warranty
claims for the market in question. See
Supplemental Questionnaire Response dated
November 28, 2005.
VerDate Aug<31>2005
17:37 Dec 27, 2005
Jkt 208001
Preliminary Results of Review
As a result of our review, we
preliminarily determine the following
weighted-average dumping margins
exist for the period December 1, 2003,
through November 30, 2004:
that particular importer made during the
POR. The Department will issue
appropriate appraisement instructions
directly to CBP upon completion of the
review.
Cash Deposit Requirements
Weighted-Average Margin
(percentage)
The following deposit requirements
will be effective upon completion of the
final results of this administrative
review for all shipments of honey from
Asociacion de Cooperativas
Argentinas ...........................
2.95 Argentina entered, or withdrawn from
Seylinco S.A. ..........................
0.00 warehouse, for consumption on or after
All Others ................................
30.24 the publication date of the final results
of this administrative review, as
The Department will disclose
provided by section 751(a)(1) of the
calculations performed within five days
Tariff Act:
of the date of publication of this notice
(1) the cash deposit rates for all
in accordance with 19 CFR 351.224(b).
companies reviewed will be the rates
An interested party may request a
established in the final results of review;
hearing within thirty days of
publication. See 19 CFR 351.310(c). Any
(2) for any previously reviewed or
hearing, if requested, will be held 37
investigated company not listed above,
days after the date of publication, or the the cash deposit rate will continue to be
first business day thereafter, unless the
the company-specific rate published in
Department alters the date pursuant to
the most recent period;
19 CFR 351.310(d). Interested parties
(3) if the exporter is not a firm
may submit case briefs or written
comments no later than 30 days after the covered in this review or the LTFV
date of publication of these preliminary investigation, but the manufacturer is,
the cash deposit rate will be the rate
results of review. Rebuttal briefs and
established for the most recent period
rebuttals to written comments, limited
for the manufacturer of the
to issues raised in the case briefs and
comments, may be filed no later than 35 merchandise; and
days after the date of publication of this
(4) if neither the exporter nor the
notice. Parties who submit arguments in manufacturer is a firm covered in this or
these proceedings are requested to
any previous review conducted by the
submit with the argument: (1) a
Department, the cash deposit rate will
statement of the issues, (2) a brief
be the ‘‘all others’’ rate from the
summary of the argument, and (3) a
investigation (30.24 percent). See Notice
table of authorities. Further, we would
of Final Determination of Sales at Less
appreciate it if parties submitting case
Than Fair Value; Honey From
briefs, rebuttal briefs, and written
Argentina, 66 FR 50611 (Oct. 4, 2001),
comments would provide the
Notice of Amended Final Determination
Department with an additional copy of
the public version of any such argument of Sales at Less Than Fair Value; Honey
From Argentina, 66 FR 58434 (Nov. 21,
on diskette. The Department will issue
2001), and Notice of Antidumping Duty
final results of this administrative
Order; Honey From Argentina, 66 FR
review, including the results of our
63672 (Dec. 10, 2001).
analysis of the issues in any such case
briefs, rebuttal briefs, and written
This notice also serves as a
comments or at a hearing, within 120
preliminary reminder to importers of
days of publication of these preliminary their responsibility under 19 CFR
results.
351.402(f) to file a certificate regarding
the reimbursement of antidumping
Assessment
duties prior to liquidation of the
The Department shall determine, and
relevant entries during this review
CBP shall assess, antidumping duties on
period. Failure to comply with this
all appropriate entries. In accordance
requirement could result in the
with 19 CFR 351.212(b)(1), we
calculated importer-specific ad valorem Secretary’s presumption that
reimbursement of antidumping duties
assessment rates for the merchandise
based on the ratio of the total amount of occurred and the subsequent assessment
of double antidumping duties.
antidumping duties calculated for the
examined sales made during the POR to
We are issuing and publishing this
the total customs value of the sales used notice in accordance with sections
to calculate those duties. This rate will
751(a)(1) and 777(i)(1) of the Tariff Act.
be assessed uniformly on all entries of
PO 00000
Manufacturer / Exporter
Frm 00036
Fmt 4703
Sfmt 4703
E:\FR\FM\28DEN1.SGM
28DEN1
Federal Register / Vol. 70, No. 248 / Wednesday, December 28, 2005 / Notices
Dated: December 20, 2005.
Stephen J. Claeys,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E5–7981 Filed 12–27–05; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–337–806]
Individually Quick Frozen Red
Raspberries from Chile: Notice of
Partial Rescission of Antidumping
Duty Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests from
interested parties, the Department of
Commerce is conducting an
administrative review of the
antidumping duty order on individually
quick frozen red raspberries from Chile.
This review covers sales of individually
quick frozen red raspberries to the
United States during the period July 1,
2004, through June 30, 2005. Based on
the withdrawal of requests for review
with respect to certain companies, we
are rescinding, in part, the third
administrative review.
EFFECTIVE DATE: December 28, 2005.
FOR FURTHER INFORMATION CONTACT:
Yasmin Bordas, AD/CVD Operations,
Office 1, Import Administration,
International Trade Administration,
U.S. Department of Commerce, 14th
Street and Constitution Avenue, N.W.,
Washington DC. 20230; telephone (202)
482–3813.
SUPPLEMENTARY INFORMATION:
AGENCY:
wwhite on PROD1PC65 with NOTICES
Background
On July 1, 2005, the Department of
Commerce (‘‘the Department’’)
published in the Federal Register the
Notice of Antidumping or
Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity
to Request Administrative Review, 70
FR 38099 (July 1, 2005), for the above–
cited segment of this antidumping duty
proceeding. We received a timely filed
request for review for 57 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 also
received timely filed requests for review
from Fruticola Olmue, S.A. (‘‘Olmue’’);
Santiago Comercio Exterior
Exportaciones, Ltda. (‘‘SANCO’’); Valles
VerDate Aug<31>2005
17:37 Dec 27, 2005
Jkt 208001
Andinos, S.A. (‘‘Valles Andinos’’); Vital
Berry Marketing, S.A. (‘‘VBM’’); and
Alimentos Naturales Vitafoods S.A.
(‘‘Vitafoods’’).
On August 29, 2005, the Department
published in the Federal Register the
Notice of Initiation of Antidumping and
Countervailing Duty Administrative
Reviews and Requests for Revocation in
Part, 70 FR 51009 (August 29, 2005),
initiating this review for all 57
companies. On September 23, 2005, we
received a submission from the
petitioners withdrawing their request
for review for all of the companies for
which they had requested an
administrative review, except for the
following companies: Arlavan, S.A.
(‘‘Arlavan’’), Sociedad Agroindustrial
Valle Frio, Ltda. (‘‘Valle Frio’’), Olmue,
Valles Andinos, VBM, SANCO, and
Vitafoods.
Partial Rescission of Antidumping
Administrative Review
The petitioners filed their withdrawal
request within the deadline established
by the Department. Therefore, we are
rescinding the above–cited
administrative review with respect to
the following companies in accordance
with 19 CFR 351.213(d)(1):
Agricola Nova, Ltda.
Agrocomercial Las Tinajas, Ltda.
Agrofruta Chilena, Ltda.
Agroindustria Framberry, Ltda.
Agroindustria Niquen, Ltda.
Agroindustria Sagrada Familia, Ltda.
Agroindustria y Frigorifico M y M,
Ltda.
Agroindustrial Frisac, Ltda.
Agroindustrial Frutos del Maipo,
Ltda.
Agroindustrial Merco Trading, Ltda.
Agroindustrias San Francisco, Ltda.
Agross, S.A.
Alimentos Prometeo, Ltda.
Alimentos y Frutos, S.A.
Andesur, S.A.
Angloeuro Comercio Exterior, S.A.
Armijo Carrasco, Claudio del Carmen
Bajo Cero, S.A.
Certified Pure Ingredients (Chile) Inc.
y Cia., Ltda.
Chile Andes Foods, S.A.
Comercializadora Agricola Berries &
Fruit, Ltda.
Comercializadora de Alimentos del
Sur, Ltda.
Comercio y Servicios, S.A.
Copefrut, S.A.
C y C Group, S.A.
Exportaciones Meyer, S.A.
Exportadora Fragaria Ltda.
Exportadora Pentagro, S.A.
Exportadora South Berries Ltda.
Francisco Nancuvilu Punsin
Frigorifico Ditzler, Ltda.
Frutas de Guaico, S.A.
PO 00000
Frm 00037
Fmt 4703
Sfmt 4703
76771
Fruticola Viconto, S.A.
Hassler Monckeberg, S.A.
Hortifrut, S.A.
Interagro Comercio y Ganado, S.A.
Kugar Export, Ltda.
Maria Teresa Ubilla Alarcon
Multifrigo Valparaiso, S.A.
Nevada Export, S.A.
Prima Agrotrading, Ltda.
Procesadora y Exportadora de Frutas
y Vegetales
Rio Teno, S.A.
Sociedad Agricola Valle del Laja,
Ltda.
Sociedad Comercial C y C, S.A.
Sociedad Exportaciones Antiquina,
Ltda.
Sociedad San Ernesto, Ltda.
Surfrut
Terra Natur, S.A.
Terrazas Export, S.A.
The following companies remain
subject to this administrative review:
Olmue, SANCO, VBM, Valles Andinos,
Vitafoods, Arlavan and Valle Frio. We
intend to issue our preliminary results
in this administrative review for Olmue,
SANCO, VBM, Valles Andinos,
Vitafoods, Arlavan, and Valle Frio by
April 3, 2006.
Assessment
The Department will instruct U.S.
Customs and Border Protection (‘‘CBP’’)
to assess antidumping duties on all
appropriate entries. For those
companies for which this review is
rescinded, antidumping duties shall be
assessed at rates equal to the cash
deposit of estimated antidumping duties
required at the time of entry, or
withdrawal from warehouse, for
consumption, in accordance with 19
CFR 351.212(c)(1)(i). The Department
will issue appropriate assessment
instructions directly to CBP within 15
days of publication of this notice.
Cash Deposit Rates
For the companies for which this
review is rescinded, the cash deposit
rate will continue to be 6.33 percent, the
‘‘all others’’ rate established in the less–
than-fair–value investigation. See Notice
of Amended Final Determination of
Sales at Less Than Fair Value: IQF Red
Raspberries from Chile, 67 FR 40270
(June 12, 2002).
These cash deposit requirements shall
remain in effect until publication of the
final results of this administrative
review.
Notification to Importers
This notice serves as a reminder to
importers of their responsibility under
19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
E:\FR\FM\28DEN1.SGM
28DEN1
Agencies
[Federal Register Volume 70, Number 248 (Wednesday, December 28, 2005)]
[Notices]
[Pages 76766-76771]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-7981]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-357-812]
Honey from Argentina: Preliminary Results and Partial Rescission
of Antidumping Duty Administrative Review and Intent Not to Revoke in
Part
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests by interested parties, the Department
of Commerce (the Department) is conducting an administrative review of
the antidumping order on honey from Argentina. The review covers six
firms. The period of review (POR) is December 1, 2003, through November
30, 2004.
We preliminarily determine that sales of honey from Argentina have
been made below the normal value (NV) in the case of Asociacion de
Cooperativas Argentinas (ACA). For Seylinco S.A. (Seylinco), we
preliminary find a zero margin. In addition, we have preliminarily
determined to rescind the review with respect to Nutrin S.A. (Nutrin),
Radix S.A. (Radix), Compania Europea Americana S.A. (CEASA), and
HoneyMax S.A. (HoneyMax) because they had no shipments of subject
merchandise to the United States during the period of review. 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 based on the difference between the export
price (EP) and NV. Interested parties are invited to comment on these
preliminary results. Parties who submit argument in these proceedings
are requested to submit with the argument: 1) a statement of the
issues, 2) a brief summary of the argument, and 3) a table of
authorities.
EFFECTIVE DATE: December 28, 2005.
FOR FURTHER INFORMATION CONTACT: Angela Strom for ACA, Brian Sheba for
Seylinco, or Robert James, AD/CVD Operations, Office 7, Import
Administration, International Trade Administration, U.S. Department of
Commerce, 14\th\ Street and Constitution Avenue, NW, Room 7866,
Washington, DC 20230; telephone (202) 482-2704, (202) 482-0145, or
(202) 482-0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
On December 10, 2001, the Department published the antidumping duty
order on honey from Argentina. See Notice of Antidumping Duty Order:
Honey from Argentina, 66 FR 63672 (December 10, 2001). On December 1,
2004, the Department published its opportunity to request a review. See
Antidumping or Countervailing Duty Order, Finding, or Suspended
Investigation; Opportunity to Request Administrative Review, 69 FR
69889. On December 30, 2004, the petitioners\1\ requested an
administrative review of the antidumping duty order on honey from
Argentina in response to the Department's notice of opportunity to
request a review. Petitioners requested that the Department review
entries of subject merchandise made by 24 Argentine producers/
exporters. In addition, the Department received individual requests for
review from four Argentine exporters, three of which were included as
part of petitioners' request for review.\2\ The Department initiated
the review for all 24 companies included in petitioners' request for
review plus El Mana S.A. (El Mana), a Argentine exporter of honey. See
Initiation of Antidumping and Countervailing Duty Administrative
Reviews and Request for Revocation in Part, 70 FR 4818 (January 31,
2005), corrected in Initiation of Antidumping and Countervailing Duty
Administrative Reviews and Request for Revocation in Part, 70 FR 7143
(February 10, 2005).
---------------------------------------------------------------------------
\1\ The petitioners are American Honey Producers Association and
the Sioux Honey Association.
\2\ The one Argentine exporter not included in petitioners'
request for review was El Mana S.A. (El Mana).
---------------------------------------------------------------------------
On February 22, 2005, petitioners withdrew their request for review
with respect to fifteen of the 24 exporters that comprised petitioners'
request for administrative review. On March 3, 2005, El Mana, an
exporter not included in petitioners' request for review, submitted a
withdrawal of its request for administrative review. On March 24, 2005,
petitioners and Nexco S.A. (Nexco) submitted a withdrawal of request
for administrative review for Nexco. On March 31, 2005, petitioners
submitted a withdrawal request for a further two companies. On April
15, 2005, the Department rescinded its administrative review for El
Mana and eighteen of the 24 companies in petitioners' December 30,
2004, request for review. See Honey from Argentina: Notice of Partial
Rescission of Antidumping Duty Administrative Review, 70 FR 19927
(April 15, 2005).
The following exporters submitted letters claiming no shipments of
the subject merchandise during the POR: Nutrin on March 9, 2005; Radix
on March 14, 2005; CEASA on March 14,
[[Page 76767]]
2005; and HoneyMax on March 16, 2005. For further discussion, see the
``Partial Rescission of Review'' section of this notice, below.
On February 23, 2005, the Department issued Sections A, B, and C of
the antidumping questionnaire to all exporters subject to the
review.\3\ We received responses on March 29 and April 22, 2005, for
ACA and on March 24 and April 8, 2005, for Seylinco.
---------------------------------------------------------------------------
\3\ Section A of the questionnaire requests general information
concerning a company's corporate structure and business practices,
the merchandise under review that it sells, and the manner in which
it sells that merchandise in all of its markets. Section B requests
a complete listing of all home market sales, or, if the home market
is not viable, of sales in the most appropriate third-country market
(this section is not applicable to respondents in non-market economy
cases). Section C requests a complete listing of U.S. sales.
---------------------------------------------------------------------------
The Department issued supplemental questionnaires for ACA on May
17, 2005, and on May 18, 2005, for Seylinco. We received responses to
these supplemental questionnaires from ACA on May 31, 2005, and from
Seylinco on June 1, 2005. On July 8, 2005, petitioners filed comments
on ACA's questionnaire responses and on July 13, 2005, ACA filed a
response to petitioners' comments. On August 2, 2005, the Department
issued a second supplemental questionnaire to ACA. On August 19, 2005,
ACA filed its response to the Department's second supplemental
questionnaire. On August 25, 2005, the Department determined a
``particular market situation'' existed in Argentina during the POR.
See the discussion of ``Selection of Comparison Market'' under ``Normal
Value'' below. On November 10, 2005, the Department issued a third
supplemental questionnaire to ACA, which ACA timely responded to on
November 28, 2005.
On July 1, 2005, the Department extended the time limit for
issuance of the preliminary results of the administrative review to
December 20, 2005. See Honey from Argentina; Extension of Time Limit
for Preliminary Results of Administrative Review, 70 FR 38102 (July 1,
2005).
Scope of the Review
The merchandise covered by this order is honey from Argentina. The
products covered are natural honey, artificial honey containing more
than 50 percent natural honey by weight, preparations of natural honey
containing more than 50 percent natural honey by weight, and flavored
honey. The subject merchandise includes all grades and colors of honey
whether in liquid, creamed, comb, cut comb, or chunk form, and whether
packaged for retail or in bulk form.
The merchandise covered by this order is currently classifiable
under subheadings 0409.00.00, 1702.90.90, and 2106.90.99 of the
Harmonized Tariff Schedule of the United States (HTSUS). Although the
HTSUS subheadings are provided for convenience and customs purposes,
the Department's written description of the merchandise under this
order is dispositive.
Partial Rescission of Review
As noted above, Nutrin, Radix, CEASA, and HoneyMax informed the
Department that they did not have shipments of subject merchandise to
the United States during the POR. We have confirmed with CBP that these
exporters did not have shipments of subject merchandise during the POR.
Therefore, in accordance with 19 CFR 351.213(d)(3) and consistent with
the Department's practice, we are preliminarily rescinding our review
with respect to Nutrin, Radix, CEASA, and HoneyMax. See e.g., Frozen
Concentrated Orange Juice from Brazil; Final Results and Partial
Rescission of Antidumping Duty Administrative Review, 66 FR 51008,
51009 (October 5, 2001) and Certain Welded Carbon Steel Pipe and Tube
from Turkey; Final Results and Partial Rescission of Antidumping
Administrative Review, 63 FR 35190, 35191 (June 29, 1998).
Intent Not To Revoke In Part
Section 351.222(e) of the Department's regulations requires, inter
alia, that a company requesting revocation submit the following: (1) a
certification that the company has sold the subject merchandise at not
less than NV in the current review period and that the company will not
sell at less than NV in the future; (2) a certification that the
company sold subject merchandise in commercial quantities in each of
the three years forming the basis of the receipt of such a request; and
(3) an agreement that the order will be reinstated if the company is
subsequently found to be selling the subject merchandise at less than
fair value. In determining whether to revoke an antidumping duty order
in part, the Department must ascertain that the party sold merchandise
at not less than normal value (i.e., zero or de minimis margins) for a
period of at least three consecutive years. See 19 CFR 351.222(b)(2).
See, e.g., Oil Country Tubular Goods From Mexico: Final Results of
Antidumping Duty Administrative Review and Determination Not to Revoke
in Part, 66 FR 15832 (March 21, 2001).
On December 27, 2004, ACA submitted a request for revocation of the
antidumping duty order with the requisite certifications set forth in
19 CFR 351.222(e). ACA based its request on the absence of dumping for
three consecutive review periods, that is, the first, second and
current administrative reviews. The Department found zero dumping
margins in both the first and second administrative reviews. See Honey
from Argentina: Final Results of Antidumping Duty Administrative
Review, 70 FR 19926 (April 15, 2005) and Honey from Argentina: Final
Results of Antidumping Duty Administrative Review, 69 FR 30283 (May 27,
2004).
In the current administrative review, we have preliminarily
determined a weighted-average margin of 2.95 percent for ACA. The
margin calculated during the current review period constitutes one of
the three consecutive reviews cited by ACA to support its request for
revocation. Consequently, we preliminarily find that ACA is not
eligible for revocation of the order under section 351.222(b) of the
Department's regulations and preliminarily determine not to revoke the
order with respect to ACA. Furthermore, pursuant to 19 CFR
351.222(d)(1) we have examined ACA's shipments over the past three PORs
and have preliminarily determined that ACA has not shipped in
commercial quantities in each of the three years forming the basis of
the request for revocation. See Memorandum to Richard Weible, Director,
through Robert James, Program Manager, from Angela Strom, Case Analyst:
``Request by Asociation of Coopertivas Argentinas (ACA) for Revocation
in the Antidumping Duty Administrative Review on Honey from
Argentina,'' dated December 20, 2005.
Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(the Tariff Act), we verified sales information provided by ACA, using
standard verification procedures such as the examination of relevant
sales and financial records. Our verification results are outlined in
the public and proprietary versions of our verification reports, which
are on file in the Central Records Unit (CRU) in room B-099 of the main
Department building. See ACA's Sales Verification Report, dated
December 13, 2005.
Product Comparison
In accordance with section 771(16) of the Tariff Act, we considered
all sales of
[[Page 76768]]
honey covered by the description in the ``Scope of the Review'' section
of this notice, supra, which were sold in the respective third-country
markets during the POR to be the foreign like product for the purpose
of determining appropriate product comparisons to honey sold in the
United States. We matched products based on the physical
characteristics reported by ACA and Seylinco. Where there were no sales
of identical merchandise in the third-country market to compare to U.S.
sales, we compared U.S. sales to the next most similar foreign like
product on the basis of the characteristics and reporting instructions
listed in the antidumping duty questionnaire and instructions, or to
constructed value (CV), as appropriate.
Level of Trade
In accordance with section 773(a)(1)(B)(i) of the Tariff Act, to
the extent practicable, we determine NV based on sales in the home
market at the same level of trade (LOT) as EP or the CEP. The NV LOT is
that of the starting-price sales in the home market or, when NV is
based on CV, that of the sales from which we derive selling, general
and administrative (SG&A) expenses and profit. For CEP, it is the level
of the constructed sale from the exporter to an affiliated importer
after the deductions required under section 772(d) of the Tariff Act.
In this review, both ACA and Seylinco claimed only EP sales.
To determine whether NV sales are at a different LOT than EP, we
examine stages in the marketing process and selling functions along the
chain of distribution between the producer and the unaffiliated
customer. If the comparison market sales are at a different LOT and the
difference affects price comparability, as manifested in a pattern of
consistent price differences between the sales on which NV is based and
comparison market sales at the LOT of the export transaction, we make
an LOT adjustment under section 773(a)(7)(A) of the Tariff Act.
ACA reported two LOTs in the third-country market corresponding to
differing channels of distribution: 1) sales to packers and 2) sales to
importers. Differing channels of distribution, alone, do not qualify as
separate LOTs when selling functions performed for each customer class
are sufficiently similar. See 19 CFR 351.412(c)(2). We found that the
selling functions ACA provided to its reported channels of distribution
in the third-country and U.S. markets were virtually the same, varying
only by the degree to which testing and warranty services were
provided. We do not find the varying degree of testing and warranty
services alone sufficient to determine the existence of different
marketing stages. See Final Determination of Sales at Less than Fair
Value; Honey from Argentina, 66 FR 50611 and accompanying Decision Memo
at Comment 18 (October 4, 2001); Honey from Argentina: Preliminary
Results of Antidumping Duty Administrative Review, 69 FR 621 (January
6, 2004). Thus, we have determined that there is only one LOT for ACA's
sales to all markets. See ACA's Analysis Memorandum, dated December 20,
2005.
Seylinco reported a single LOT for all U.S. and third-country
sales. Seylinco claimed that its selling activities in both markets are
identical, although we note Seylinco sold to two general classes of
customers in both the U.S. and its comparison market. For Seylinco, we
preliminarily determine that all reported sales are made at the same
LOT, and we therefore have no need to make an LOT adjustment. See
Seylinco's Analysis Memorandum, dated December 20, 2005.
Transactions Investigated
Section 351.401(i) of the Department's regulations states that the
Department normally will use date of invoice, as recorded in the
exporter's or producer's records kept in the ordinary course of
business, as the date of sale, but may use a date other than the date
of invoice if it better reflects the date on which material terms of
sale are established. For ACA, the Department, consistent with its
practice, used the reported shipment date as the date of sale for both
its third-country and U.S. markets since shipment occurred prior to
invoice date. See Notice of Final Determinations of Sales at Less than
Fair Value: Certain Durum Wheat and Hard Red Spring Wheat from Canada,
68 FR 52741 (September 5, 2003), and accompanying Decision Memo at
Comment 3. For Seylinco, the Department used the invoice date as the
date of sale for both its comparison and U.S. market sales.
Export Price and Constructed Export Price
Section 772(a) of the Tariff Act defines EP as ``the price at which
the subject merchandise is first sold (or agreed to be sold) before the
date of importation by the producer or exporter of subject merchandise
outside of the United States to an unaffiliated purchaser in the United
States or to an unaffiliated purchaser for exportation to the United
States. . . .,'' as adjusted under section 772(c). Section 772(b) of
the Tariff Act defines CEP as ``the price at which the subject
merchandise is first sold (or agreed to be sold) in the United States
before or after the date of importation by or for the account of the
producer or exporter of such merchandise or by a seller affiliated with
the producer or exporter, to a purchaser not affiliated with the
producer or exporter. . . .,'' as adjusted under sections 772(c) and
(d). ACA and Seylinco have classified their U.S. sales as EP because
all of their sales were made before the date of importation directly to
unaffiliated purchasers in the U.S. market. For purposes of these
preliminary results, we have accepted these classifications.
Normal Value
1. Selection of Comparison Market
In accordance with section 773(a)(1)(C) of the Tariff Act, to
determine whether there was a sufficient volume of sales in the home
market to serve as a viable basis for calculating NV (i.e., the
aggregate volume of home market sales of the foreign like product is
greater than or equal to five percent of the aggregate volume of U.S.
sales), we compare each company's aggregate volume of home market sales
of the foreign like product to its aggregate volume of U.S. sales of
subject merchandise. Because Seylinco did not have home market sales,
we preliminarily find that Seylinco's home market did not provide a
viable basis for calculating NV. ACA, however, did have home market
sales in excess of five percent of the aggregate volume of U.S. sales.
Section 773(a)(1)(C)(iii) of the Tariff Act provides that the
Department may determine that home market sales are inappropriate as a
basis for determining NV if a particular market situation would not
permit a proper comparison with EP or CEP. During the first and second
reviews of this order, the Department found a particular market
situation rendered the Argentine market inappropriate for the
calculation of NV because of, among other reasons, the export-oriented
nature of the Argentine honey industry.\4\ In the first supplemental
questionnaire dated May 17, 2005, the Department asked ACA to provide
further information in order to
[[Page 76769]]
evaluate the market situation in Argentina with respect to honey, and
on May 31, 2005, ACA responded to the Department's request. ACA states
that the circumstances in this review are the same as in the first two
reviews and that the Department should find a ``particular market
situation'' in Argentina.
---------------------------------------------------------------------------
\4\ See Honey from Argentina: Preliminary Results of Anti-
Dumping Duty Administrative Review, 69 FR 621 (January 6, 2004);
Honey From Argentina: Final Results of Antidumping Duty
Administrative Review, 69 FR 30283 (May 27, 2004); Honey from
Argentina: Preliminary Results of Anti-Dumping Duty Administrative
Review, 69 FR 77195 (December 27, 2004); and Honey From Argentina:
Final Results of Antidumping Duty Administrative Review, 70 FR 19926
(April 15, 2005).
---------------------------------------------------------------------------
On August 25, 2005, the Department determined that a particular
market situation does, in fact, exist with respect to ACA's sales of
honey in Argentina, rendering the Argentine market inappropriate for
purposes of determining NV. See Decision Memorandum ``Analysis of
Particular Market Place Situation'' from Angela Strom through Robert
James to Richard Weible, dated August 25, 2005.
When sales in the home market are not suitable to serve as the
basis for NV, section 773(a)(1)(B)(ii) of the Tariff Act provides that
sales to a third-country market may be utilized if (i) the prices in
such market are representative; (ii) the aggregate quantity of the
foreign like product sold by the producer or exporter in the third-
country market is five percent or more of the aggregate quantity of the
subject merchandise sold in or to the United States; and (iii) the
Department does not determine that a particular market situation in the
third-country market prevents a proper comparison with the U.S. price.
ACA reported France as its largest third-country market during the POR,
in terms of volume of sales (and the aggregate quantity of such sales
is five percent or more of sales to the United States). Seylinco
reported Germany as its largest third-country market during the POR, in
terms of volume of sales (and the aggregate quantity of such sales is
five percent or more of sales to the United States). See, e.g., Notice
of Preliminary Results of Antidumping Duty Administrative Review,
Preliminary Determination To Revoke the Order in Part, and Partial
Rescission of Antidumping Duty Administrative Review: Fresh Atlantic
Salmon From Chile, 67 FR 51186, 51186 (August 7, 2002) (selecting the
largest third-country market as the basis for NV). The Department
preliminarily determines that the prices in France and Germany are
representative and no particular market situation exists that would
prevent a proper comparison to EP. As a result, for ACA, NV is based on
sales to France and for Seylinco NV is based on sales to Germany.
In summary, therefore, NV for all companies is based on third-
country market sales to unaffiliated purchasers made in commercial
quantities and in the ordinary course of trade. For NV, we used the
prices at which the foreign like product was first sold for consumption
in the usual commercial quantities, in the ordinary course of trade,
and, to the extent possible, at the same LOT as the EP. We calculated
NV as noted in the ``Price-to-Price Comparisons'' section of this
notice.
2. Cost of Production
The Department disregarded certain sales made by ACA to its
comparison market at prices below the cost of producing the subject
merchandise during the investigation. See Notice of Final Determination
of Sales at Less Than Fair Value; Honey from Argentina, 66 FR 50611
(October 4, 2001) and Notice of Amended Final Determination of Sales at
Less Than Fair Value; Honey from Argentina, 66 FR 58434 (Nov 21, 2001)
(Final Determination). However, because we did not find sales below
cost in the most recently completed segment of this proceeding and
because petitioners made no allegation of sales below cost in the
context of this review, the Department determined there were not
reasonable grounds to believe or suspect that ACA made sales in the
comparison market at prices below the cost of producing the merchandise
in this review. See section 773(b)(2)(A) of the Tariff Act. As a
result, on May 17, 2005, we informed ACA that ACA would not be required
to submit cost information.
Price-to-Price Comparisons
ACA
We based NV on the third-country market prices to unaffiliated
purchasers. In accordance with section 773(a)(6)(B) of the Tariff Act,
we made adjustments, where applicable, for movement expenses. In
accordance with section 773(a)(6)(C) of the Tariff Act, we made
circumstance-of-sale adjustments for credit and other direct selling
expenses, where appropriate. We note that for certain claimed direct
expenses in the third-country market, the Department has re-classified
them as indirect for the reasons outlined in the accompanying Analysis
Memorandum.
As in previous segments of this proceeding, ACA originally reported
warranty expenses on a customer-specific basis. ACA allocated warranty
claims corresponding to POR sales to total tons of honey sold to a
particular customer during the POR. In response to our first request
for information, ACA also submitted transaction-specific warranty
expenses. See Supplemental Questionnaire Response dated May 31, 2005.
In response to our most recent request for information, ACA reported
its historical experience for warranties by market. See Supplemental
Questionnaire Response dated November 28, 2005.
Notwithstanding ACA's reporting of warranty expenses both on a
customer-specific and transaction-specific basis, the Department finds
that these allocation methodologies fail to reflect the nature and
terms of warranty costs as incurred by ACA, i.e., at the time of sale,
warranty claims for specific customers or transactions cannot be known
or quantified and the terms for such claims did not vary from customer
to customer. Indeed, in the less than fair value investigation
involving honey from Argentina, the Department recalculated ACA's
warranty expense over total sales to the market in question. See Notice
of Preliminary Determination of Sales at Less Than Fair Value: Honey
from Argentina, 66 FR 24108 (May 11, 2001), unchanged in Notice of
Final Determination of Sales at Less than Fair Value; Honey from
Argentina, 66 FR 50611 (October 4, 2001). In the second administrative
review, the Department accepted ACA's reported warranty expenses on a
customer-specific basis. See ACA's Sales Verification Report, dated
November 26, 2004,and ACA's Analysis Memorandum, dated December 20,
2004. However, based upon our review of the facts in this case, this is
not the appropriate methodology.
If the warranty terms offered by a respondent at the time of sale
vary significantly from customer to customer, a customer-specific
allocation of warranty expenses may be appropriate. However, as in this
case, if the warranty terms offered by the respondent at the time of
sale are not significantly different from customer to customer, an
allocation of warranty expenses over total sales or sales to the market
in question is more reflective of the nature of the expense and the
respondent's expectation that its pricing behavior will allow it to
recoup these costs over time. Furthermore, because warranty expenses
are not incurred until after a warranty claim has been received from a
customer, can vary greatly from year to year, and can occur months or
years after the relevant date of sale, the Department often bases
warranty expenses on historical data rather than the expenses incurred
during a single POR. (See, e.g., Large Newspaper Printing Presses and
Components Thereof, Whether Assembled or Unassembled, From Germany:
Final Results of Antidumping Duty Administrative Review, 66 FR 11557
(February 26, 2001) and accompanying Decision Memorandum at Comment 6.)
[[Page 76770]]
Based on the foregoing considerations, we have re-calculated ACA's
reported warranty expenses. In order to capture warranty expenses
reflective of ACA's historical experience for the market in question,
we used warranty expenditures incurred in that market in the three most
recently completed fiscal years\5\ and allocated those expenses over
ACA's total sales to that market for the same three-year period. The
resulting ratio which we applied to the gross unit price for these
Preliminary Results represents a three year historical average of ACA's
warranty expenses with respect to the market in question. In addition,
we revised certain warranty expenses for the reasons outlined in the
accompanying Analysis Memorandum. See ACA's Analysis Memorandum, dated
December 20, 2005.
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\5\ The three most recent fiscal years were chosen as the
calculated time period because this is in accord with the
Department's standard questionnaire. Furthermore, the three-year
average is not inconsistent with ACA's historical warranty claims
for the market in question. See Supplemental Questionnaire Response
dated November 28, 2005.
---------------------------------------------------------------------------
Seylinco
We based NV on the third-country prices to unaffiliated purchasers.
We made adjustments, where applicable, for movement expenses in
accordance with section 773(a)(6)(B) of the Tariff Act. Where
appropriate, we made circumstance-of-sale adjustments for credit
pursuant to section 773(a)(6)(C) of the Tariff Act. We also made
adjustments, where applicable, for other direct selling expenses, in
accordance with section 773(a)(6)(C) of the Tariff Act. See Seylinco's
Analysis Memorandum, dated December 20, 2005.
Currency Conversion
The Department's preferred source for daily exchange rates is the
Federal Reserve Bank. See Preliminary Results of Antidumping Duty
Administrative Review: Stainless Steel Sheet and Strip in Coils from
France, 68 FR 47049, 47055 (August 7, 2003). However, the Federal
Reserve Bank does not track or publish exchange rates for the Argentine
peso. Therefore, we made currency conversions based on the daily
exchange rates from Factiva, a Dow Jones & Reuters Retrieval Service.
Factiva publishes exchange rates for Monday through Friday only. We
used the rate of exchange on the most recent Friday for conversion
dates involving Saturday through Sunday where necessary.
Preliminary Results of Review
As a result of our review, we preliminarily determine the following
weighted-average dumping margins exist for the period December 1, 2003,
through November 30, 2004:
------------------------------------------------------------------------
Weighted-
Average
Manufacturer / Exporter Margin
(percentage)
------------------------------------------------------------------------
Asociacion de Cooperativas Argentinas..................... 2.95
Seylinco S.A.............................................. 0.00
All Others................................................ 30.24
------------------------------------------------------------------------
The Department will disclose calculations performed within five
days of the date of publication of this notice in accordance with 19
CFR 351.224(b). An interested party may request a hearing within thirty
days of publication. See 19 CFR 351.310(c). Any hearing, if requested,
will be held 37 days after the date of publication, or the first
business day thereafter, unless the Department alters the date pursuant
to 19 CFR 351.310(d). Interested parties may submit case briefs or
written comments no later than 30 days after the date of publication of
these preliminary results of review. Rebuttal briefs and rebuttals to
written comments, limited to issues raised in the case briefs and
comments, may be filed no later than 35 days after the date of
publication of this notice. Parties who submit arguments in these
proceedings are requested to submit with the argument: (1) a statement
of the issues, (2) a brief summary of the argument, and (3) a table of
authorities. Further, we would appreciate it if parties submitting case
briefs, rebuttal briefs, and written comments would provide the
Department with an additional copy of the public version of any such
argument on diskette. The Department will issue final results of this
administrative review, including the results of our analysis of the
issues in any such case briefs, rebuttal briefs, and written comments
or at a hearing, within 120 days of publication of these preliminary
results.
Assessment
The Department shall determine, and CBP shall assess, antidumping
duties on all appropriate entries. In accordance with 19 CFR
351.212(b)(1), we calculated importer-specific ad valorem assessment
rates for the merchandise based on the ratio of the total amount of
antidumping duties calculated for the examined sales made during the
POR to the total customs value of the sales used to calculate those
duties. This rate will be assessed uniformly on all entries of that
particular importer made during the POR. The Department will issue
appropriate appraisement instructions directly to CBP upon completion
of the review.
Cash Deposit Requirements
The following deposit requirements will be effective upon
completion of the final results of this administrative review for all
shipments of honey from Argentina 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
Tariff Act:
(1) the cash deposit rates for all companies reviewed will be the
rates established in the final results of review;
(2) for any previously reviewed or investigated company not listed
above, the cash deposit rate will continue to be the company-specific
rate published in the most recent period;
(3) if the exporter is not a firm covered in this review or the
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) if neither the exporter nor the manufacturer is a firm covered
in this or any previous review conducted by the Department, the cash
deposit rate will be the ``all others'' rate from the investigation
(30.24 percent). See Notice of Final Determination of Sales at Less
Than Fair Value; Honey From Argentina, 66 FR 50611 (Oct. 4, 2001),
Notice of Amended Final Determination of Sales at Less Than Fair Value;
Honey From Argentina, 66 FR 58434 (Nov. 21, 2001), and Notice of
Antidumping Duty Order; Honey From Argentina, 66 FR 63672 (Dec. 10,
2001).
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 this notice in accordance with
sections 751(a)(1) and 777(i)(1) of the Tariff Act.
[[Page 76771]]
Dated: December 20, 2005.
Stephen J. Claeys,
Acting Assistant Secretary for Import Administration.
[FR Doc. E5-7981 Filed 12-27-05; 8:45 am]
BILLING CODE 3510-DS-S