Certain Frozen Warmwater Shrimp from the People's Republic of China: Preliminary Results of the Antidumping Duty New Shipper Review, 38368-38372 [E6-10565]
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Federal Register / Vol. 71, No. 129 / Thursday, July 6, 2006 / Notices
subsequent assessment of doubled
antidumping duties.
DEPARTMENT OF COMMERCE
International Trade Administration
Administrative Protective Orders
This notice also serves as the only
reminder to parties subject to
administrative protective orders (APOs)
of their responsibility concerning the
return or destruction of proprietary
information disclosed under an APO in
accordance with 19 CFR 351.305.
Timely written notification of the
return/destruction of APO materials or
conversion to judicial protective order is
hereby requested. Failure to comply
with the regulations and terms of an
APO is a violation which is subject to
sanction.
We are issuing and publishing this
determination and notice in accordance
with sections 751(a)(1) and 771(i) of the
Act.
Dated: June 27, 2006.
David M. Spooner,
Assistant Secretaryfor Import Administration.
Appendix Issues in Decision
Memorandum
Comments
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Comment 1: Whether the Department
properly valued pencil cores.
Comment 2: Whether the Department
should use one or more respondents’
market–economy purchase prices of
cores, erasers and lacquer to value these
factors for respondents that did not
purchase these items from a market–
economy supplier.
Comment 3: Whether the Department
excluded small quantity/high value
import transactions from its calculation
of surrogate values.
Comment 4: Whether the Department
used the wrong HTS category to
calculate a surrogate value for Rongxin’s
kaolin clay.
Comment 5: Whether the Department
should continue to apply partial adverse
facts available to SFTC.
Comment 6: Whether the surrogate
value for labor is correct.
Comment 7: Whether to continue to
treat CFP and Three Star as a single
entity.
Comment 8: Whether the Department
properly accounted for wood loss in its
calculation of a surrogate value for slats.
Comment 9: Whether the Department
used the correct lumber dimensions to
calculate a surrogate value for slats.
Comment 10: Whether to continue to
apply total adverse facts available to
Guangdong Stationery & Sporting Goods
Import & Export Corp.
[FR Doc. E6–10568 Filed 7–5–06; 8:45 am]
BILLING CODE 3510–DS–S
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Certain Frozen Warmwater Shrimp
from the People’s Republic of China:
Preliminary Results of the
Antidumping Duty New Shipper
Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(‘‘the Department’’) is currently
conducting a new shipper review of the
antidumping duty order on certain
frozen warmwater shrimp from the
People’s Republic of China (‘‘PRC’’)
covering the period July 16, 2004,
through July 31, 2005. The Department
preliminarily determines that sales have
not been made below normal value
(‘‘NV’’) with respect to Zhanjiang Regal
Integrated Marine Resources Co., Ltd.
(‘‘Zhanjiang Regal’’), which participated
fully and is entitled to a separate rate in
this review. If these preliminary results
are adopted in its final results of this
review, the Department will instruct
U.S. Customs and Border Protection
(‘‘CBP’’) to assess antidumping duties
on entries of subject merchandise
during the period of review (‘‘POR’’) for
which the importer–specific assessment
rates are above de minimis.
EFFECTIVE DATE: July 6, 2006.
FOR FURTHER INFORMATION CONTACT:
Javier Barrientos, AD/CVD Operations,
Office 9, Import Administration,
International Trade Administration,
U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW,
Washington, DC 20230; telephone: (202)
482–2243.
SUPPLEMENTARY INFORMATION:
AGENCY:
Case History
General
On February 1, 2005, the Department
published in the Federal Register an
amended final determination and
antidumping duty order on certain
frozen warmwater shrimp from the PRC.
See Notice of Amended Final
Determination of Sales at Less Than
Fair Value and Antidumping Duty
Order: Certain Frozen Warmwater
Shrimp From the People’s Republic of
China, 70 FR 05149 (February 1, 2005).
On August 26, 2005, the Department
received a new shipper review request
from Zhanjiang Regal. On September 16,
2005, the Department requested that
Zhanjiang Regal correct certain filing
deficiencies. See the Department’s letter
dated September 16, 2005. On
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September 20, 2005, Zhanjiang Regal
resubmitted their new shipper review
request in accordance with section
751(a)(2)(B) of the Tariff Act of 1930, as
amended (the Act), and section
351.214(c) of the Department’s
regulations. On September 30, 2005, the
Department initiated a new shipper
review with respect to Zhanjiang Regal.
See Certain Frozen Warmwater Shrimp
From the People’s Republic of China:
Initiation of New Shipper Review, 70 FR
58679 (October 7, 2005) (‘‘Initiation
Notice’’).
On February 16, 2006, the Department
placed the entry package it received
from CBP for Zhanjiang Regal’s new
shipper sale on the record of this
review. See Memorandum from Javier
Barrientos, AD/CVD Financial Analyst,
Office 9, through Alex Villanueva,
Program Manager, Office 9, to the File:
Antidumping Duty New Shipper Review
of Certain Frozen Warmwater Shrimp
from the People’s Republic of China:
Placing Entry Packages on the Record,
dated February 9, 2006.
Questionnaires and Responses
On October 21, 2005, the Department
issued sections A, C, and D of the
general antidumping duty questionnaire
to Zhanjiang Regal, along with the
standard importer questionnaire for new
shipper reviews. Zhanjiang Regal
submitted its response to section A of
the questionnaire on November 21,
2005, and subsequently submitted its
response to sections C and D, and the
importer questionnaire, on December 9,
2005. On December 22, 2005, the
Department issued its first supplemental
questionnaire for sections A, C and D.
Zhanjiang Regal filed its response to this
supplemental questionnaire on January
17, 2006. On March 13, 2006, the
Department issued its second
supplemental questionnaire for sections
A, C, and D to Zhanjiang Regal and its
importer. Zhanjiang Regal filed its
response to the Department’s second
sections A, C, and D supplemental
questionnaires on April 3, 2006, and to
the importer’s questionnaire on April 7,
2006.
Surrogate Country and Values
On November 2, 2005, the team
requested from the Office of Policy a
memorandum listing surrogate
countries. The Department received a
list of surrogate countries on November
7, 2005. On March 2, 2006, the
Department notified parties of the
opportunity to submit comments on
surrogate country selection and
surrogate values. No party submitted
surrogate country selection comments,
although Zhanjiang Regal submitted
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surrogate value comments. On May 22,
2006, the Department issued its
surrogate country selection
memorandum. See Memorandum from
Javier Barrientos, AD/CVD Financial
Analyst, Office 9, through Alex
Villanueva, Program Manager, Office 9,
and Jim Doyle, Director, Office 9, to the
File: Antidumping Duty New Shipper
Review of Certain Frozen Warmwater
Shrimp from the People’s Republic of
China: Selection of a Surrogate Country,
dated May 22, 2006 (‘‘Surrogate Country
Memo’’).
Period of Review
The POR covers July 16, 2004,
through July 31, 2005.
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Scope of the Order
The scope of this order includes
certain warmwater shrimp and prawns,
whether frozen, wild–caught (ocean
harvested) or farm–raised (produced by
aquaculture), head–on or head–off,
shell–on or peeled, tail–on or tail–off
(including the telson and the uropods),
deveined or not deveined, cooked or
raw, or otherwise processed in frozen
form.
The frozen warmwater shrimp and
prawn products included in the scope of
this order, regardless of definitions in
the Harmonized Tariff Schedule of the
United States (HTSUS), are products
which are processed from warmwater
shrimp and prawns through freezing
and which are sold in any count size.
The products described above may be
processed from any species of
warmwater shrimp and prawns.
Warmwater shrimp and prawns are
generally classified in, but are not
limited to, the penaeidae family. Some
examples of the farmed and wild–
caught warmwater species include, but
are not limited to, whiteleg shrimp
(penaeus vannemei), banana prawn
(penaeus merguiensis), fleshy prawn
(penaeus chinensis), giant river prawn
(macrobrachium rosenbergii), giant tiger
prawn (penaeus monodon), redspotted
shrimp (penaeus brasiliensis), southern
brown shrimp (penaeus subtilis),
southern pink shrimp (penaeus
notialis), southern rough shrimp
(trachypenaeus curvirostris), southern
white shrimp (penaeus schmitti), blue
shrimp (penaeus stylirostris), western
white shrimp (penaeus occidentalis),
and indian white prawn (penaeus
indicus).
Frozen shrimp and prawns that are
packed with marinade, spices or sauce
are included in the scope of this order.
In addition, food preparations, which
are not ‘‘prepared meals,’’ that contain
more than 20 percent by weight of
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verification results are outlined in the
verification report, which is being
issued concurrently with this notice.
For further discussion, see
Memorandum from Javier Barrientos,
AD/CVD Financial Analyst, Office 9,
through Alex Villanueva, Program
Manager, Office 9, to the File:
Verification of the Sales and Factors
Response of Zhanjiang Regal Trading
Co., Ltd. (‘‘Zhanjiang Regal’’) in the
Antidumping Duty New Shipper Review
of Certain Frozen Warmwater Shrimp
from the People’s Republic of China,
dated June 27, 2006, (‘‘Zhanjiang Regal
Verification Report’’).
shrimp or prawn are also included in
the scope of this order.
Excluded from the scope are: (1)
Breaded shrimp and prawns (HTSUS
subheading 1605.20.10.20); (2) shrimp
and prawns generally classified in the
pandalidae family and commonly
referred to as coldwater shrimp, in any
state of processing; (3) fresh shrimp and
prawns whether shell–on or peeled
(HTSUS subheadings 0306.23.00.20 and
0306.23.00.40); (4) shrimp and prawns
in prepared meals (HTSUS subheading
1605.20.05.10); (5) dried shrimp and
prawns; 6) Lee Kum Kee’s shrimp sauce;
(7) canned warmwater shrimp and
prawns (HTSUS subheading
1605.20.10.40); (8) certain dusted
shrimp; and (9) certain battered shrimp.
Dusted shrimp is a shrimp–based
product: (1) that is produced from fresh
(or thawed–from-frozen) and peeled
shrimp; (2) to which a ‘‘dusting’’ layer
of rice or wheat flour of at least 95
percent purity has been applied; (3)
with the entire surface of the shrimp
flesh thoroughly and evenly coated with
the flour; (4) with the non–shrimp
content of the end product constituting
between four and ten percent of the
product’s total weight after being
dusted, but prior to being frozen; (5) that
is subjected to individually quick frozen
(IQF) freezing immediately after
application of the dusting layer.
Battered shrimp is a shrimp–based
product that, when dusted in
accordance with the definition of
dusting above, is coated with a wet
viscous layer containing egg and/or
milk, and par–fried.
The products covered by this order
are currently classified under the
following HTSUS subheadings:
0306.13.00.03, 0306.13.00.06,
0306.13.00.09, 0306.13.00.12,
0306.13.00.15, 0306.13.00.18,
0306.13.00.21, 0306.13.00.24,
0306.13.00.27, 0306.13.00.40,
1605.20.10.10, and 1605.20.10.30. These
HTSUS subheadings are provided for
convenience and for Customs purposes
only and are not dispositive, but rather
the written description of the scope of
this order is dispositive.
New Shipper Status
Consistent with the Department’s
practice, the Department investigated
the bona fide bona fide nature of the
sale made by Zhanjiang Regal for this
new shipper review. The Department
found the sale in question was made on
a bona fide basis. Based on the
Department’s investigation into the
bona fide nature of the sale, the
questionnaire responses submitted by
Zhanjiang Regal, and the Department’s
verification thereof, as well as Zhanjiang
Regal’s eligibility for a separate rate (see
below), and the Department’s
preliminarily determination that
Zhanjiang Regal was not affiliated with
any exporter or producer that had
previously shipped subject merchandise
to the United States, we preliminarily
determine that the respondent has met
the requirements to qualify as a new
shipper during the POR. Therefore, for
purposes of these preliminary results of
the review, the Department is treating
Zhanjiang Regal’s sale of subject
merchandise to the United States as an
appropriate transaction for this new
shipper review. See Memorandum from
Javier Barrientos, AD/CVD Financial
Analyst, Office 9, through Alex
Villanueva, Program Manager, Office 9,
to James C. Doyle, Office Director, Office
9: Bona Fide Nature of the Sale in the
Antidumping Duty New Shipper Review
of Certain Frozen Warmwater Shrimp:
Zhanjiang Regal Trading Co., Ltd., dated
June 27, 2006.
Verification
On March 30, 2006, the Department
issued the verification outline to
Zhanjiang Regal. The Department
conducted verification of the
questionnaire responses submitted by
Zhanjiang Regal at its office in
Zhanjiang, PRC from April 10 -14, 2006.
The Department used standard
verification procedures, including on–
site inspection of the facilities, and
examination of relevant sales and
financial records. The Department’s
Separate Rates
The Department has treated the PRC
as a non–market economy (‘‘NME’’)
country in all previous antidumping
cases. See, e.g., Final Determination of
Sales at Less Than Fair Value and Final
Partial Affirmative Determination of
Critical Circumstances: Diamond
Sawblades and Parts Thereof from the
People’s Republic of China, 71 FR 29303
(May 22, 2006).In accordance with
section 771(18)(C)(i) of the Act, any
determination that a foreign country is
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an NME country shall remain in effect
until revoked by the administering
authority. The Department has no
evidence suggesting that this
determination should be changed.
Therefore, the Department treated the
PRC as an NME country for purposes of
this review and calculated NV by
valuing the factors of production
(‘‘FOP’’) in a surrogate country. It is the
Department’s policy to assign all
exporters of the merchandise subject to
review that are located in NME
countries a single antidumping duty rate
unless an exporter can demonstrate an
absence of governmental control, both
in law (de jure) de facto and in fact (de
facto), with respect to its export
activities. To establish whether an
exporter is sufficiently independent of
governmental control to be entitled to a
separate rate, the Department analyzes
the exporter using the criteria
established in the Final Determination
of Sales at Less Than Fair Value:
Sparklers from the People’s Republic of
China, 56 FR 20588 (May 6, 1991)
(‘‘Sparklers’’), as adopted and amplified
in the Final Determination of Sales at
Less Than Fair Value: Silicon Carbide
from the People’s Republic of China, 59
FR 22585, 22586–87 (May 2, 1994)
(‘‘Silicon Carbide’’). Under the separate
rates criteria established in these cases,
the Department assigns separate rates to
NME exporters only if they can
demonstrate the absence of both de jure
and de facto governmental control over
their export activities.
Absence of De Jure Control
Evidence supporting, though not
requiring, a finding of de jure absence
of government control over export
activities includes: (1) an absence of
restrictive stipulations associated with
the individual exporter’s business and
export licenses; (2) any legislative
enactments decentralizing control of
companies; and (3) any other formal
measures by the government
decentralizing control of companies. See
Sparklers at 20589.
In the instant review, Zhanjiang Regal
submitted a complete response to the
separate rates section of the
Department’s questionnaire. The
evidence submitted in the instant
review by Zhanjiang Regal includes
government laws and regulations on
corporate ownership and control,
business licences, and narrative
information regarding the company’s
operations and selection of
management. See Zhanjiang Regal
Verification Report at Exhibits 2 and 6.
The evidence provided by Zhanjiang
Regal supports a finding of an absence
of de jure governmental control over its
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export activities because it indicates
that: (1) there are no controls on exports
of subject merchandise, such as quotas
applied to, or licenses required for,
exports of the subject merchandise to
the United States; and (2) the subject
merchandise does not appear on any
government list regarding export
provisions or export licensing.
Absence of De Facto Control
The absence of de facto governmental
control over exports is based on whether
the respondent: (1) sets its own export
prices independent of the government
and other exporters; (2) retains the
proceeds from its export sales and
makes independent decisions regarding
the disposition of profits or financing of
losses; (3) has the authority to negotiate
and sign contracts and other
agreements; and (4) has autonomy from
the government regarding the selection
of management. See Silicon Carbide at
22587; Sparklers at 20589; see also
Notice of Final Determination of Sales
at Less Than Fair Value: Furfuryl
Alcohol from the People’s Republic of
China, 60 FR 22544, 22545 (May 8,
1995).
In its questionnaire responses,
Zhanjiang Regal submitted evidence
demonstrating an absence of de facto
governmental control over its export
activities. Specifically, this evidence
indicates that: (1) The company sets its
own export prices independent of the
government and without the approval of
a government authority; (2) the
company retains the proceeds from its
sales and makes independent decisions
regarding the disposition of profits or
financing of losses; (3) the company has
a general manager with the authority to
negotiate and bind the company in an
agreement; (4) the general manager is
selected by the board of directors, and
the general manager appoints the
deputy managers and the manager of
each department; and (5) there is no
restriction on the company’s use of
export revenues. Therefore, the
Department has preliminarily found that
Zhanjiang Regal qualifies for a separate
rate under the criteria established by
Silicon Carbide and Sparklers.
Use of Facts Available
Section 776(a)(2) of the Act, provides
that, if an interested party: (A)
withholds information that has been
requested by the Department; (B) fails to
provide such information in a timely
manner or in the form or manner
requested, subject to sections 782(c)(1)
and (e) of the Act; (C) significantly
impedes a proceeding under the
antidumping statute; or (D) provides
such information but the information
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cannot be verified, the Department
shall, subject to subsection 782(d) of the
Act, use facts otherwise available in
reaching the applicable determination.
In the instant review, the Department
discovered that Zhanjiang Regal
included part of its factory electricity
usage under selling, general, and
administrative (SG&A) electricity usage.
Specifically, the company included the
electricity used to run the chill
compressors in the processing plant
under the meter used for SG&A. See
Zhanjiang Regal Verification Report at
2. Furthermore, the company could not
determine how much of the SG&A
electricity reading was from the chill
compressors, thus preventing the
Department from verifying this
information. Id. at 31. However, the
plant engineer estimated (based on his
experience) the percentage of the SG&A
meter reading that was attributable to
the compressors. Id. Therefore, as facts
otherwise available, pursuant to section
776(a)(2)(D) of the Act, the Department
is assigning this estimate of the SG&A
electricity meter readings to factory
electricity. See Memorandum from
Javier Barrientos, AD/CVD Financial
Analyst, Office 9, through Alex
Villanueva, Program Manager, Office 9,
to the File: Analysis of Zhanjiang Regal
Trading Co., Ltd. for the Preliminary
Results in the Antidumping Duty New
Shipper Review of Certain Frozen
Warmwater Shrimp from the PRC, dated
June 27, 2006.
Surrogate Country
When the Department is investigating
imports from an NME country, section
773(c)(1) of the Act directs it to base
normal value (‘‘NV’’), in most
circumstances, on the NME producer’s
factors of production, valued in a
surrogate market–economy country or
countries considered to be appropriate
by the Department. In accordance with
section 773(c)(4) of the Act, in valuing
the factors of production, the
Department shall utilize, to the extent
possible, the prices or costs of factors of
production in one or more market–
economy countries that are at a level of
economic development comparable to
that of the NME country and are
significant producers of comparable
merchandise. The sources of the
surrogate values the Department used in
this review are discussed under the
‘‘Normal Value’’ section below.
The Department determined that
India, Sri Lanka, Indonesia, the
Philippines, and Egypt are countries
comparable to the PRC in terms of
economic development. See
Memorandum from Ron Lorentzen,
Director, Office of Policy, to Alex
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Villanueva, Program Manager, Office 9;
New Shipper Review of Certain Frozen
Warmwater Shrimp from the People’s
Republic of China (PRC): Request for a
List of Surrogate Countries, dated
November, 2005. Because of India’s and
Indonesia’s relative levels of shrimp
production, which is consistent with
worldwide characteristics of frozen
shrimp production, these two countries
were selected as significant producers of
comparable merchandise. See Surrogate
Country Memo at 4. The Department
select an appropriate surrogate country
based on the availability and reliability
of data from the countries. See
Department Policy Bulletin No. 04.1:
Non–Market Economy Surrogate
Country Selection Process (‘‘Policy
Bulletin’’), dated March 1, 2004. In this
case, the Department found that India is
a significant producer of comparable
merchandise, is at a similar level of
economic development pursuant to
section 773(c)(4) of the Act, and has
publicly available and reliable data. See
Surrogate Country Memo.
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U.S. Price
In accordance with section 772(a) of
the Act, the Department calculated the
export price (‘‘EP’’) for sales to the
United States for Zhanjiang Regal
because the first sale to an unaffiliated
party was made before the date of
importation and the use of constructed
EP was not otherwise warranted. The
Department calculated EP based on the
price to unaffiliated purchasers in the
United States. Consistent with section
772(c) of the Act, as appropriate, the
Department deducted from the starting
price to the unaffiliated purchaser:
foreign inland freight; brokerage and
handling; and international freight. For
Zhanjiang Regal, foreign inland freight
and brokerage and handling were
provided by an NME vendor or paid for
using an NME currency. Thus, the
Department based the deduction of
these movement charges on surrogate
values. See Memorandum from Javier
Barrientos, AD/CVD Financial Analyst,
through Alex Villanueva, Program
Manager, Office 9, to the File; New
Shipper Review of Certain Frozen
Warmwater Shrimp from the People’s
Republic of China: Surrogate Values for
the Preliminary Results, dated June 27,
2006 (‘‘Surrogate Values Memo’’) for
details regarding the surrogate values for
movement expenses. For international
freight, provided by a non–market
economy provider, but paid for in U.S.
dollars, the Department based the
deduction on a surrogate value.
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Normal Value
In accordance with section 773(c) of
the Act, the Department calculated NV
based on factors of production (‘‘FOP’’)
reported by the respondents for the
POR. To calculate NV, the Department
valued the reported FOP by multiplying
the per–unit factor quantities by
publicly available Indian surrogate
values. In selecting surrogate values, the
Department considered the quality,
specificity, and contemporaneity of the
available values. As appropriate, the
Department adjusted the value of
material inputs to account for delivery
costs. Where appropriate, the
Department increased Indian surrogate
values by surrogate inland freight costs.
The Department calculated these inland
freight costs using the shorter of the
reported distances from the PRC port to
the PRC factory, or from the domestic
supplier to the factory. This adjustment
is in accordance with the United States
Court of Appeals for the Federal
Circuit’s (‘‘CAFC’’) decision in Sigma
Corp. v. United States, 117 F. 3d 1401,
1407–1408 (Fed.Cir. 1997). For those
values not contemporaneous with the
POR, the Department adjusted for
inflation or deflation using data
published in the IMF’s International
Financial Statistics. The Department
excluded from the surrogate country
import data used in the Department’s
calculations imports from Korea,
Thailand, and Indonesia due to
generally available export subsidies. See
China Nat’l Mach. Import & Export
Corp. v. United States, 293 F. Supp. 2d
1334 (CIT 2003), aff’d 104 Fed. Appx.
183 (Fed. Cir. 2004) and Certain Cut–toLength Carbon Steel Plate from
Romania: Notice of Final Results and
Final Partial Rescission of Antidumping
Duty Administrative Review, 70 FR
12651 (March 15, 2005) and
accompanying Issues and Decision
Memorandum at Comment 4.
Furthermore, the Department
disregarded prices from NME countries.
Finally, imports that were labeled as
originating from an ‘‘unspecified’’
country were excluded from the average
value, because the Department could
not be certain that they were not from
either an NME or a country with general
export subsidies. Finally, the
Department converted the surrogate
values to U.S. dollars as appropriate,
using the official exchange rate recorded
on the date of sale of subject
merchandise in this case, obtained from
Import Administration’s website at
https://www.ia.ita.doc.gov/exchange/
index.html. For further detail, see the
Surrogate Values Memo.
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38371
Changes from Verification
For electricity, the Department is
assigning the plant engineer’s estimate
of the SG&A electricity meter readings
to factory electricity. See Facts
Available section above.
For direct labor, the Department
discovered at verification that Zhanjiang
Regal made a clerical/transposing error
in summing certain fields in their
worksheets. See Zhanjiang Regal
Verification Report at 32. This error
affected the direct labor usage rate for
both growing and processing direct
labor. Therefore, the Department will
use its verification findings for direct
labor. See Zhanjiang Regal Analysis
Memo.
For international freight, Zhanjiang
Regal provided the actual cost it
incurred in U.S. dollars in its sales
database. However, at verification the
Department found the freight carrier
was based in an NME country. See
Zhanjiang Regal Verification Report at
25. Therefore, the Department used a
surrogate value for the international
freight expense Zhanjiang Regal
incurred on its sale of the subject
merchandise.
Preliminary Results of Review
The Department preliminarily
determines that the following weight
average margin exist during the period
July 16, 2004, through July 31, 2005:
CERTAIN FROZEN WARMWATER
SHRIMP FROM THE PRC
Exporter/Manufacturer
Zhanjiang Regal Integrated Marine Resources Co., Ltd. .......
Weighted–Average
Margin (Percent)
0.00
Public Comment
The Department will disclose to
parties to this proceeding the
calculations performed in reaching the
preliminary results within ten days of
the date of announcement of these
preliminary results. An interested party
may request a hearing within 30 days of
publication of these preliminary results.
See 19 CFR 351.310(c). Interested
parties may submit written comments
(case briefs) within 30 days of
publication of the preliminary results
and rebuttal comments (rebuttal briefs),
which must be limited to issues raised
in the case briefs, within five days after
the time limit for filing case briefs. See
19 CFR 351.309(c)(1)(ii) and 19 CFR
351.309(d). Parties who submit
arguments are requested to submit with
the argument: (1) a statement of the
issues; (2) a brief summary of the
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Federal Register / Vol. 71, No. 129 / Thursday, July 6, 2006 / Notices
argument; and (3) a table of authorities.
Further, the Department requests that
parties submitting written comments
provide the Department with a diskette
containing the public version of those
comments. Unless the deadline is
extended pursuant to section
751(a)(3)(A) of the Act, the Department
will issue the final results of this new
shipper review, including the results of
the Department’s analysis of the issues
raised by the parties in their comments,
within 120 days of publication of these
preliminary results. The assessment of
antidumping duties on entries of
merchandise covered by this review and
future deposits of estimated duties shall
be based on the final results of this
review.
jlentini on PROD1PC65 with NOTICES
Assessment Rates
Upon issuing the final results of the
review, the Department shall determine,
and CBP shall assess, antidumping
duties on all appropriate entries. The
Department will issue appropriate
appraisement instructions for the
companies subject to this review
directly to CBP within 15 days of
publication of the final results of this
review. Pursuant to 19 CFR
351.212(b)(1), the Department will
calculate importer–specific ad valorem
duty assessment rates based on the ratio
of the total amount of the dumping
margins calculated for the examined
sales to the total entered value of those
same sales. The Department will
instruct CBP to assess antidumping
duties on all appropriate entries covered
by this review if any importer–specific
assessment rate calculated in the final
results of this review is above de
minimis.
Cash Deposit Requirements
Upon completion of this review, the
Department will require cash deposits at
the rate established in the final results
as further described below.
Bonding will no longer be permitted
to fulfill security requirements for
shipments of certain frozen warmwater
shrimp from the PRC produced and
exported by Zhanjiang Regal that are
entered, or withdrawn from warehouse,
for consumption on or after the
publication date of the final results of
this new shipper review. See 19 CFR
§ 351.214(e). The following cash deposit
requirements will be effective upon
publication of the final results of this
new shipper review for all shipments of
subject merchandise from Zhanjiang
Regal entered, or withdrawn from
warehouse, for consumption on or after
the publication date: (1) For subject
merchandise manufactured and
exported by Zhanjiang Regal, the cash
VerDate Aug<31>2005
17:01 Jul 05, 2006
Jkt 208001
deposit rate will be the rate established
in the final results of this review, except
that no cash deposit will be required if
the cash deposit rate calculated in the
final results is zero or de minimis; and
(2) for subject merchandise exported by
Zhanjiang Regal but not manufactured
by itself, the cash deposit rate will
continue to be the
PRC–wide rate (i.e., 112.81 percent);
and (3) for subject merchandise
produced by Zhanjiang Regal but not
exported by itself, the cash deposit rate
will be the rate applicable to the
exporter. These requirements, when
imposed, shall remain in effect until
publication of the final results of the
next administrative review.
Notification to Importers
This notice serves as a preliminary
reminder to importers of their
responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
This new shipper review and notice
are in accordance with sections
751(a)(1), 751(a)(2)(B), and 777(i) of the
Act and 19 CFR 351.214(h)(i).
respondent interested parties, the
Department conducted expedited (120day) sunset reviews. See section
751(c)(3)(B) of the Act. As a result of
these sunset reviews, the Department
finds that revocation of the antidumping
duty orders would be likely to lead to
continuation or recurrence of dumping
at the levels listed in the ‘‘Final Results
of Reviews’’ section below.
EFFECTIVE DATE: July 6, 2006.
FOR FURTHER INFORMATION CONTACT: Zev
Primor or Kristin Case, AD/CVD
Operations, Office 5, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street & Constitution
Avenue, NW, Washington, DC 20230;
telephone: (202) 482–4114 or (202) 482–
3174.
SUPPLEMENTARY INFORMATION:
Background
On March 1, 2006, the Department of
Commerce (the Department) initiated
the second sunset reviews of the
antidumping duty orders on stainless
steel bar (SSB) from Brazil, India, Japan,
and Spain pursuant to section 751(c) of
the Tariff Act of 1930, as amended (the
Act). See Initiation of Five-year
(‘‘Sunset’’) Reviews, 71 FR 10476
(March 1, 2006). The Department
received a notice of intent to participate
from Carpenter Technology Corp.,
Crucible Specialty Metals Division of
Dated: June 27, 2006.
Crucible Materials Corp., Electralloy
Corp., North American Stainless,
David M. Spooner,
Assistant Secretaryfor Import Administration. Universal Stainless & Alloy Products,
Inc., and Valbruna Slater Stainless, Inc.
[FR Doc. E6–10565 Filed 7–5–06; 8:45 am]
(collectively the domestic interested
BILLING CODE 3510–DS–S
parties), within the deadline specified
in 19 CFR 351.218(d)(1)(i) pertaining to
sunset reviews. The domestic interested
DEPARTMENT OF COMMERCE
parties claimed interested–party status
International Trade Administration
under section 771(9)(C) of the Act as
manufacturers of a domestic like
[A–351–825, A–533–810, A–588–833, A–469–
product in the United States. We
805]
received complete substantive responses
from the domestic interested parties
Stainless Steel Bar from Brazil, India,
within the 30-day deadline specified in
Japan, and Spain; Final Results of the
19 CFR 351.218(d)(3)(i). We received no
Expedited Sunset Reviews of the
responses from the respondent
Antidumping Duty Orders
interested parties. As a result, pursuant
AGENCY: Import Administration,
to section 751(c)(3)(B) of the Act and 19
International Trade Administration,
CFR 351.218(e)(1)(ii)(C)(2), the
Department of Commerce.
Department has conducted expedited
SUMMARY: On March 1, 2006, the
(120-day) sunset reviews of these orders.
Department of Commerce initiated the
Scope of the Orders
second sunset reviews of the
Imports covered by these orders are
antidumping duty orders on stainless
shipments of SSB. SSB means articles of
steel bar from Brazil, India, Japan, and
stainless steel in straight lengths that
Spain pursuant to section 751(c) of the
have been either hot–rolled, forged,
Tariff Act of 1930, as amended. On the
turned, cold–drawn, cold–rolled or
basis of a notice of intent to participate
otherwise cold–finished, or ground,
and adequate substantive responses
having a uniform solid cross section
filed on behalf of domestic interested
along their whole length in the shape of
parties and no responses received from
PO 00000
Frm 00017
Fmt 4703
Sfmt 4703
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]]>Agencies
[Federal Register Volume 71, Number 129 (Thursday, July 6, 2006)]
[Notices]
[Pages 38368-38372]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-10565]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-893]
Certain Frozen Warmwater Shrimp from the People's Republic of
China: Preliminary Results of the Antidumping Duty New Shipper Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (``the Department'') is currently
conducting a new shipper review of the antidumping duty order on
certain frozen warmwater shrimp from the People's Republic of China
(``PRC'') covering the period July 16, 2004, through July 31, 2005. The
Department preliminarily determines that sales have not been made below
normal value (``NV'') with respect to Zhanjiang Regal Integrated Marine
Resources Co., Ltd. (``Zhanjiang Regal''), which participated fully and
is entitled to a separate rate in this review. If these preliminary
results are adopted in its final results of this review, the Department
will instruct U.S. Customs and Border Protection (``CBP'') to assess
antidumping duties on entries of subject merchandise during the period
of review (``POR'') for which the importer-specific assessment rates
are above de minimis.
EFFECTIVE DATE: July 6, 2006.
FOR FURTHER INFORMATION CONTACT: Javier Barrientos, AD/CVD Operations,
Office 9, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW,
Washington, DC 20230; telephone: (202) 482-2243.
SUPPLEMENTARY INFORMATION:
Case History
General
On February 1, 2005, the Department published in the Federal
Register an amended final determination and antidumping duty order on
certain frozen warmwater shrimp from the PRC. See Notice of Amended
Final Determination of Sales at Less Than Fair Value and Antidumping
Duty Order: Certain Frozen Warmwater Shrimp From the People's Republic
of China, 70 FR 05149 (February 1, 2005). On August 26, 2005, the
Department received a new shipper review request from Zhanjiang Regal.
On September 16, 2005, the Department requested that Zhanjiang Regal
correct certain filing deficiencies. See the Department's letter dated
September 16, 2005. On September 20, 2005, Zhanjiang Regal resubmitted
their new shipper review request in accordance with section
751(a)(2)(B) of the Tariff Act of 1930, as amended (the Act), and
section 351.214(c) of the Department's regulations. On September 30,
2005, the Department initiated a new shipper review with respect to
Zhanjiang Regal. See Certain Frozen Warmwater Shrimp From the People's
Republic of China: Initiation of New Shipper Review, 70 FR 58679
(October 7, 2005) (``Initiation Notice'').
On February 16, 2006, the Department placed the entry package it
received from CBP for Zhanjiang Regal's new shipper sale on the record
of this review. See Memorandum from Javier Barrientos, AD/CVD Financial
Analyst, Office 9, through Alex Villanueva, Program Manager, Office 9,
to the File: Antidumping Duty New Shipper Review of Certain Frozen
Warmwater Shrimp from the People's Republic of China: Placing Entry
Packages on the Record, dated February 9, 2006.
Questionnaires and Responses
On October 21, 2005, the Department issued sections A, C, and D of
the general antidumping duty questionnaire to Zhanjiang Regal, along
with the standard importer questionnaire for new shipper reviews.
Zhanjiang Regal submitted its response to section A of the
questionnaire on November 21, 2005, and subsequently submitted its
response to sections C and D, and the importer questionnaire, on
December 9, 2005. On December 22, 2005, the Department issued its first
supplemental questionnaire for sections A, C and D. Zhanjiang Regal
filed its response to this supplemental questionnaire on January 17,
2006. On March 13, 2006, the Department issued its second supplemental
questionnaire for sections A, C, and D to Zhanjiang Regal and its
importer. Zhanjiang Regal filed its response to the Department's second
sections A, C, and D supplemental questionnaires on April 3, 2006, and
to the importer's questionnaire on April 7, 2006.
Surrogate Country and Values
On November 2, 2005, the team requested from the Office of Policy a
memorandum listing surrogate countries. The Department received a list
of surrogate countries on November 7, 2005. On March 2, 2006, the
Department notified parties of the opportunity to submit comments on
surrogate country selection and surrogate values. No party submitted
surrogate country selection comments, although Zhanjiang Regal
submitted
[[Page 38369]]
surrogate value comments. On May 22, 2006, the Department issued its
surrogate country selection memorandum. See Memorandum from Javier
Barrientos, AD/CVD Financial Analyst, Office 9, through Alex
Villanueva, Program Manager, Office 9, and Jim Doyle, Director, Office
9, to the File: Antidumping Duty New Shipper Review of Certain Frozen
Warmwater Shrimp from the People's Republic of China: Selection of a
Surrogate Country, dated May 22, 2006 (``Surrogate Country Memo'').
Period of Review
The POR covers July 16, 2004, through July 31, 2005.
Scope of the Order
The scope of this order includes certain warmwater shrimp and
prawns, whether frozen, wild-caught (ocean harvested) or farm-raised
(produced by aquaculture), head-on or head-off, shell-on or peeled,
tail-on or tail-off (including the telson and the uropods), deveined or
not deveined, cooked or raw, or otherwise processed in frozen form.
The frozen warmwater shrimp and prawn products included in the
scope of this order, regardless of definitions in the Harmonized Tariff
Schedule of the United States (HTSUS), are products which are processed
from warmwater shrimp and prawns through freezing and which are sold in
any count size.
The products described above may be processed from any species of
warmwater shrimp and prawns. Warmwater shrimp and prawns are generally
classified in, but are not limited to, the penaeidae family. Some
examples of the farmed and wild-caught warmwater species include, but
are not limited to, whiteleg shrimp (penaeus vannemei), banana prawn
(penaeus merguiensis), fleshy prawn (penaeus chinensis), giant river
prawn (macrobrachium rosenbergii), giant tiger prawn (penaeus monodon),
redspotted shrimp (penaeus brasiliensis), southern brown shrimp
(penaeus subtilis), southern pink shrimp (penaeus notialis), southern
rough shrimp (trachypenaeus curvirostris), southern white shrimp
(penaeus schmitti), blue shrimp (penaeus stylirostris), western white
shrimp (penaeus occidentalis), and indian white prawn (penaeus
indicus).
Frozen shrimp and prawns that are packed with marinade, spices or
sauce are included in the scope of this order. In addition, food
preparations, which are not ``prepared meals,'' that contain more than
20 percent by weight of shrimp or prawn are also included in the scope
of this order.
Excluded from the scope are: (1) Breaded shrimp and prawns (HTSUS
subheading 1605.20.10.20); (2) shrimp and prawns generally classified
in the pandalidae family and commonly referred to as coldwater shrimp,
in any state of processing; (3) fresh shrimp and prawns whether shell-
on or peeled (HTSUS subheadings 0306.23.00.20 and 0306.23.00.40); (4)
shrimp and prawns in prepared meals (HTSUS subheading 1605.20.05.10);
(5) dried shrimp and prawns; 6) Lee Kum Kee's shrimp sauce; (7) canned
warmwater shrimp and prawns (HTSUS subheading 1605.20.10.40); (8)
certain dusted shrimp; and (9) certain battered shrimp. Dusted shrimp
is a shrimp-based product: (1) that is produced from fresh (or thawed-
from-frozen) and peeled shrimp; (2) to which a ``dusting'' layer of
rice or wheat flour of at least 95 percent purity has been applied; (3)
with the entire surface of the shrimp flesh thoroughly and evenly
coated with the flour; (4) with the non-shrimp content of the end
product constituting between four and ten percent of the product's
total weight after being dusted, but prior to being frozen; (5) that is
subjected to individually quick frozen (IQF) freezing immediately after
application of the dusting layer. Battered shrimp is a shrimp-based
product that, when dusted in accordance with the definition of dusting
above, is coated with a wet viscous layer containing egg and/or milk,
and par-fried.
The products covered by this order are currently classified under
the following HTSUS subheadings: 0306.13.00.03, 0306.13.00.06,
0306.13.00.09, 0306.13.00.12, 0306.13.00.15, 0306.13.00.18,
0306.13.00.21, 0306.13.00.24, 0306.13.00.27, 0306.13.00.40,
1605.20.10.10, and 1605.20.10.30. These HTSUS subheadings are provided
for convenience and for Customs purposes only and are not dispositive,
but rather the written description of the scope of this order is
dispositive.
Verification
On March 30, 2006, the Department issued the verification outline
to Zhanjiang Regal. The Department conducted verification of the
questionnaire responses submitted by Zhanjiang Regal at its office in
Zhanjiang, PRC from April 10 -14, 2006. The Department used standard
verification procedures, including on-site inspection of the
facilities, and examination of relevant sales and financial records.
The Department's verification results are outlined in the verification
report, which is being issued concurrently with this notice. For
further discussion, see Memorandum from Javier Barrientos, AD/CVD
Financial Analyst, Office 9, through Alex Villanueva, Program Manager,
Office 9, to the File: Verification of the Sales and Factors Response
of Zhanjiang Regal Trading Co., Ltd. (``Zhanjiang Regal'') in the
Antidumping Duty New Shipper Review of Certain Frozen Warmwater Shrimp
from the People's Republic of China, dated June 27, 2006, (``Zhanjiang
Regal Verification Report'').
New Shipper Status
Consistent with the Department's practice, the Department
investigated the bona fide bona fide nature of the sale made by
Zhanjiang Regal for this new shipper review. The Department found the
sale in question was made on a bona fide basis. Based on the
Department's investigation into the bona fide nature of the sale, the
questionnaire responses submitted by Zhanjiang Regal, and the
Department's verification thereof, as well as Zhanjiang Regal's
eligibility for a separate rate (see below), and the Department's
preliminarily determination that Zhanjiang Regal was not affiliated
with any exporter or producer that had previously shipped subject
merchandise to the United States, we preliminarily determine that the
respondent has met the requirements to qualify as a new shipper during
the POR. Therefore, for purposes of these preliminary results of the
review, the Department is treating Zhanjiang Regal's sale of subject
merchandise to the United States as an appropriate transaction for this
new shipper review. See Memorandum from Javier Barrientos, AD/CVD
Financial Analyst, Office 9, through Alex Villanueva, Program Manager,
Office 9, to James C. Doyle, Office Director, Office 9: Bona Fide
Nature of the Sale in the Antidumping Duty New Shipper Review of
Certain Frozen Warmwater Shrimp: Zhanjiang Regal Trading Co., Ltd.,
dated June 27, 2006.
Separate Rates
The Department has treated the PRC as a non-market economy
(``NME'') country in all previous antidumping cases. See, e.g., Final
Determination of Sales at Less Than Fair Value and Final Partial
Affirmative Determination of Critical Circumstances: Diamond Sawblades
and Parts Thereof from the People's Republic of China, 71 FR 29303 (May
22, 2006).In accordance with section 771(18)(C)(i) of the Act, any
determination that a foreign country is
[[Page 38370]]
an NME country shall remain in effect until revoked by the
administering authority. The Department has no evidence suggesting that
this determination should be changed. Therefore, the Department treated
the PRC as an NME country for purposes of this review and calculated NV
by valuing the factors of production (``FOP'') in a surrogate country.
It is the Department's policy to assign all exporters of the
merchandise subject to review that are located in NME countries a
single antidumping duty rate unless an exporter can demonstrate an
absence of governmental control, both in law (de jure) de facto and in
fact (de facto), with respect to its export activities. To establish
whether an exporter is sufficiently independent of governmental control
to be entitled to a separate rate, the Department analyzes the exporter
using the criteria established in the Final Determination of Sales at
Less Than Fair Value: Sparklers from the People's Republic of China, 56
FR 20588 (May 6, 1991) (``Sparklers''), as adopted and amplified in the
Final Determination of Sales at Less Than Fair Value: Silicon Carbide
from the People's Republic of China, 59 FR 22585, 22586-87 (May 2,
1994) (``Silicon Carbide''). Under the separate rates criteria
established in these cases, the Department assigns separate rates to
NME exporters only if they can demonstrate the absence of both de jure
and de facto governmental control over their export activities.
Absence of De Jure Control
Evidence supporting, though not requiring, a finding of de jure
absence of government control over export activities includes: (1) an
absence of restrictive stipulations associated with the individual
exporter's business and export licenses; (2) any legislative enactments
decentralizing control of companies; and (3) any other formal measures
by the government decentralizing control of companies. See Sparklers at
20589.
In the instant review, Zhanjiang Regal submitted a complete
response to the separate rates section of the Department's
questionnaire. The evidence submitted in the instant review by
Zhanjiang Regal includes government laws and regulations on corporate
ownership and control, business licences, and narrative information
regarding the company's operations and selection of management. See
Zhanjiang Regal Verification Report at Exhibits 2 and 6. The evidence
provided by Zhanjiang Regal supports a finding of an absence of de jure
governmental control over its export activities because it indicates
that: (1) there are no controls on exports of subject merchandise, such
as quotas applied to, or licenses required for, exports of the subject
merchandise to the United States; and (2) the subject merchandise does
not appear on any government list regarding export provisions or export
licensing.
Absence of De Facto Control
The absence of de facto governmental control over exports is based
on whether the respondent: (1) sets its own export prices independent
of the government and other exporters; (2) retains the proceeds from
its export sales and makes independent decisions regarding the
disposition of profits or financing of losses; (3) has the authority to
negotiate and sign contracts and other agreements; and (4) has autonomy
from the government regarding the selection of management. See Silicon
Carbide at 22587; Sparklers at 20589; see also Notice of Final
Determination of Sales at Less Than Fair Value: Furfuryl Alcohol from
the People's Republic of China, 60 FR 22544, 22545 (May 8, 1995).
In its questionnaire responses, Zhanjiang Regal submitted evidence
demonstrating an absence of de facto governmental control over its
export activities. Specifically, this evidence indicates that: (1) The
company sets its own export prices independent of the government and
without the approval of a government authority; (2) the company retains
the proceeds from its sales and makes independent decisions regarding
the disposition of profits or financing of losses; (3) the company has
a general manager with the authority to negotiate and bind the company
in an agreement; (4) the general manager is selected by the board of
directors, and the general manager appoints the deputy managers and the
manager of each department; and (5) there is no restriction on the
company's use of export revenues. Therefore, the Department has
preliminarily found that Zhanjiang Regal qualifies for a separate rate
under the criteria established by Silicon Carbide and Sparklers.
Use of Facts Available
Section 776(a)(2) of the Act, provides that, if an interested
party: (A) withholds information that has been requested by the
Department; (B) fails to provide such information in a timely manner or
in the form or manner requested, subject to sections 782(c)(1) and (e)
of the Act; (C) significantly impedes a proceeding under the
antidumping statute; or (D) provides such information but the
information cannot be verified, the Department shall, subject to
subsection 782(d) of the Act, use facts otherwise available in reaching
the applicable determination.
In the instant review, the Department discovered that Zhanjiang
Regal included part of its factory electricity usage under selling,
general, and administrative (SG&A) electricity usage. Specifically, the
company included the electricity used to run the chill compressors in
the processing plant under the meter used for SG&A. See Zhanjiang Regal
Verification Report at 2. Furthermore, the company could not determine
how much of the SG&A electricity reading was from the chill
compressors, thus preventing the Department from verifying this
information. Id. at 31. However, the plant engineer estimated (based on
his experience) the percentage of the SG&A meter reading that was
attributable to the compressors. Id. Therefore, as facts otherwise
available, pursuant to section 776(a)(2)(D) of the Act, the Department
is assigning this estimate of the SG&A electricity meter readings to
factory electricity. See Memorandum from Javier Barrientos, AD/CVD
Financial Analyst, Office 9, through Alex Villanueva, Program Manager,
Office 9, to the File: Analysis of Zhanjiang Regal Trading Co., Ltd.
for the Preliminary Results in the Antidumping Duty New Shipper Review
of Certain Frozen Warmwater Shrimp from the PRC, dated June 27, 2006.
Surrogate Country
When the Department is investigating imports from an NME country,
section 773(c)(1) of the Act directs it to base normal value (``NV''),
in most circumstances, on the NME producer's factors of production,
valued in a surrogate market-economy country or countries considered to
be appropriate by the Department. In accordance with section 773(c)(4)
of the Act, in valuing the factors of production, the Department shall
utilize, to the extent possible, the prices or costs of factors of
production in one or more market-economy countries that are at a level
of economic development comparable to that of the NME country and are
significant producers of comparable merchandise. The sources of the
surrogate values the Department used in this review are discussed under
the ``Normal Value'' section below.
The Department determined that India, Sri Lanka, Indonesia, the
Philippines, and Egypt are countries comparable to the PRC in terms of
economic development. See Memorandum from Ron Lorentzen, Director,
Office of Policy, to Alex
[[Page 38371]]
Villanueva, Program Manager, Office 9; New Shipper Review of Certain
Frozen Warmwater Shrimp from the People's Republic of China (PRC):
Request for a List of Surrogate Countries, dated November, 2005.
Because of India's and Indonesia's relative levels of shrimp
production, which is consistent with worldwide characteristics of
frozen shrimp production, these two countries were selected as
significant producers of comparable merchandise. See Surrogate Country
Memo at 4. The Department select an appropriate surrogate country based
on the availability and reliability of data from the countries. See
Department Policy Bulletin No. 04.1: Non-Market Economy Surrogate
Country Selection Process (``Policy Bulletin''), dated March 1, 2004.
In this case, the Department found that India is a significant producer
of comparable merchandise, is at a similar level of economic
development pursuant to section 773(c)(4) of the Act, and has publicly
available and reliable data. See Surrogate Country Memo.
U.S. Price
In accordance with section 772(a) of the Act, the Department
calculated the export price (``EP'') for sales to the United States for
Zhanjiang Regal because the first sale to an unaffiliated party was
made before the date of importation and the use of constructed EP was
not otherwise warranted. The Department calculated EP based on the
price to unaffiliated purchasers in the United States. Consistent with
section 772(c) of the Act, as appropriate, the Department deducted from
the starting price to the unaffiliated purchaser: foreign inland
freight; brokerage and handling; and international freight. For
Zhanjiang Regal, foreign inland freight and brokerage and handling were
provided by an NME vendor or paid for using an NME currency. Thus, the
Department based the deduction of these movement charges on surrogate
values. See Memorandum from Javier Barrientos, AD/CVD Financial
Analyst, through Alex Villanueva, Program Manager, Office 9, to the
File; New Shipper Review of Certain Frozen Warmwater Shrimp from the
People's Republic of China: Surrogate Values for the Preliminary
Results, dated June 27, 2006 (``Surrogate Values Memo'') for details
regarding the surrogate values for movement expenses. For international
freight, provided by a non-market economy provider, but paid for in
U.S. dollars, the Department based the deduction on a surrogate value.
Normal Value
In accordance with section 773(c) of the Act, the Department
calculated NV based on factors of production (``FOP'') reported by the
respondents for the POR. To calculate NV, the Department valued the
reported FOP by multiplying the per-unit factor quantities by publicly
available Indian surrogate values. In selecting surrogate values, the
Department considered the quality, specificity, and contemporaneity of
the available values. As appropriate, the Department adjusted the value
of material inputs to account for delivery costs. Where appropriate,
the Department increased Indian surrogate values by surrogate inland
freight costs. The Department calculated these inland freight costs
using the shorter of the reported distances from the PRC port to the
PRC factory, or from the domestic supplier to the factory. This
adjustment is in accordance with the United States Court of Appeals for
the Federal Circuit's (``CAFC'') decision in Sigma Corp. v. United
States, 117 F. 3d 1401, 1407-1408 (Fed.Cir. 1997). For those values not
contemporaneous with the POR, the Department adjusted for inflation or
deflation using data published in the IMF's International Financial
Statistics. The Department excluded from the surrogate country import
data used in the Department's calculations imports from Korea,
Thailand, and Indonesia due to generally available export subsidies.
See China Nat'l Mach. Import & Export Corp. v. United States, 293 F.
Supp. 2d 1334 (CIT 2003), aff'd 104 Fed. Appx. 183 (Fed. Cir. 2004) and
Certain Cut-to-Length Carbon Steel Plate from Romania: Notice of Final
Results and Final Partial Rescission of Antidumping Duty Administrative
Review, 70 FR 12651 (March 15, 2005) and accompanying Issues and
Decision Memorandum at Comment 4. Furthermore, the Department
disregarded prices from NME countries. Finally, imports that were
labeled as originating from an ``unspecified'' country were excluded
from the average value, because the Department could not be certain
that they were not from either an NME or a country with general export
subsidies. Finally, the Department converted the surrogate values to
U.S. dollars as appropriate, using the official exchange rate recorded
on the date of sale of subject merchandise in this case, obtained from
Import Administration's website at https://www.ia.ita.doc.gov/exchange/
index.html. For further detail, see the Surrogate Values Memo.
Changes from Verification
For electricity, the Department is assigning the plant engineer's
estimate of the SG&A electricity meter readings to factory electricity.
See Facts Available section above.
For direct labor, the Department discovered at verification that
Zhanjiang Regal made a clerical/transposing error in summing certain
fields in their worksheets. See Zhanjiang Regal Verification Report at
32. This error affected the direct labor usage rate for both growing
and processing direct labor. Therefore, the Department will use its
verification findings for direct labor. See Zhanjiang Regal Analysis
Memo.
For international freight, Zhanjiang Regal provided the actual cost
it incurred in U.S. dollars in its sales database. However, at
verification the Department found the freight carrier was based in an
NME country. See Zhanjiang Regal Verification Report at 25. Therefore,
the Department used a surrogate value for the international freight
expense Zhanjiang Regal incurred on its sale of the subject
merchandise.
Preliminary Results of Review
The Department preliminarily determines that the following weight
average margin exist during the period July 16, 2004, through July 31,
2005:
Certain Frozen Warmwater Shrimp from the PRC
------------------------------------------------------------------------
Weighted-Average
Exporter/Manufacturer Margin (Percent)
------------------------------------------------------------------------
Zhanjiang Regal Integrated Marine Resources Co., 0.00
Ltd................................................
------------------------------------------------------------------------
Public Comment
The Department will disclose to parties to this proceeding the
calculations performed in reaching the preliminary results within ten
days of the date of announcement of these preliminary results. An
interested party may request a hearing within 30 days of publication of
these preliminary results. See 19 CFR 351.310(c). Interested parties
may submit written comments (case briefs) within 30 days of publication
of the preliminary results and rebuttal comments (rebuttal briefs),
which must be limited to issues raised in the case briefs, within five
days after the time limit for filing case briefs. See 19 CFR
351.309(c)(1)(ii) and 19 CFR 351.309(d). Parties who submit arguments
are requested to submit with the argument: (1) a statement of the
issues; (2) a brief summary of the
[[Page 38372]]
argument; and (3) a table of authorities. Further, the Department
requests that parties submitting written comments provide the
Department with a diskette containing the public version of those
comments. Unless the deadline is extended pursuant to section
751(a)(3)(A) of the Act, the Department will issue the final results of
this new shipper review, including the results of the Department's
analysis of the issues raised by the parties in their comments, within
120 days of publication of these preliminary results. The assessment of
antidumping duties on entries of merchandise covered by this review and
future deposits of estimated duties shall be based on the final results
of this review.
Assessment Rates
Upon issuing the final results of the review, the Department shall
determine, and CBP shall assess, antidumping duties on all appropriate
entries. The Department will issue appropriate appraisement
instructions for the companies subject to this review directly to CBP
within 15 days of publication of the final results of this review.
Pursuant to 19 CFR 351.212(b)(1), the Department will calculate
importer-specific ad valorem duty assessment rates based on the ratio
of the total amount of the dumping margins calculated for the examined
sales to the total entered value of those same sales. The Department
will instruct CBP to assess antidumping duties on all appropriate
entries covered by this review if any importer-specific assessment rate
calculated in the final results of this review is above de minimis.
Cash Deposit Requirements
Upon completion of this review, the Department will require cash
deposits at the rate established in the final results as further
described below.
Bonding will no longer be permitted to fulfill security
requirements for shipments of certain frozen warmwater shrimp from the
PRC produced and exported by Zhanjiang Regal that are entered, or
withdrawn from warehouse, for consumption on or after the publication
date of the final results of this new shipper review. See 19 CFR Sec.
351.214(e). The following cash deposit requirements will be effective
upon publication of the final results of this new shipper review for
all shipments of subject merchandise from Zhanjiang Regal entered, or
withdrawn from warehouse, for consumption on or after the publication
date: (1) For subject merchandise manufactured and exported by
Zhanjiang Regal, the cash deposit rate will be the rate established in
the final results of this review, except that no cash deposit will be
required if the cash deposit rate calculated in the final results is
zero or de minimis; and (2) for subject merchandise exported by
Zhanjiang Regal but not manufactured by itself, the cash deposit rate
will continue to be the
PRC-wide rate (i.e., 112.81 percent); and (3) for subject
merchandise produced by Zhanjiang Regal but not exported by itself, the
cash deposit rate will be the rate applicable to the exporter. These
requirements, when imposed, shall remain in effect until publication of
the final results of the next administrative review.
Notification to Importers
This notice serves as a preliminary reminder to importers of their
responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
This new shipper review and notice are in accordance with sections
751(a)(1), 751(a)(2)(B), and 777(i) of the Act and 19 CFR
351.214(h)(i).
Dated: June 27, 2006.
David M. Spooner,
Assistant Secretaryfor Import Administration.
[FR Doc. E6-10565 Filed 7-5-06; 8:45 am]
BILLING CODE 3510-DS-S
