Canned Pineapple Fruit from Thailand: Preliminary Results of Antidumping Duty Administrative Review, 44256-44260 [E6-12654]
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Federal Register / Vol. 71, No. 150 / Friday, August 4, 2006 / Notices
DEPARTMENT OF COMMERCE
International Trade Administration
[A–549–813]
Canned Pineapple Fruit from Thailand:
Preliminary Results of Antidumping
Duty Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests by
certain producers/exporters of the
subject merchandise and the
petitioners,1 the Department of
Commerce (the Department) is
conducting an administrative review of
the antidumping duty order on canned
pineapple fruit (CPF) from Thailand.
This review covers two producers/
exporters of the subject merchandise.
The period of review (POR) is July 1,
2004, through June 30, 2005.
The Department has preliminarily
determined that the companies subject
to this review made U.S. sales at prices
less than normal value (NV). If these
preliminary results are adopted in our
final results of administrative review,
we will instruct U.S. Customs and
Border Protection (CBP) to assess
antidumping duties on all appropriate
entries. Interested parties are invited to
comment on these preliminary results of
review. We will issue the final results of
review no later than 120 days from the
date of publication of this notice.
EFFECTIVE DATE: August 4, 2006.
FOR FURTHER INFORMATION CONTACT:
Magd Zalok or Howard Smith, AD/CVD
Operations, Office 4, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230,
telephone: (202) 482–4162 and (202)
482–5193, respectively.
SUPPLEMENTARY INFORMATION:
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AGENCY:
Background
On July 1, 2005, the Department
published in the Federal Register a
notice of ‘‘Opportunity to Request
Administrative Review’’ of the
antidumping duty order on CPF from
Thailand. See Antidumping or
Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity
To Request Administrative Review, 70
FR 38099 (July 1, 2005). In accordance
with 19 CFR § 351.213(b)(2), on July 19,
2005, the producer/exporter, Vita Food
Factory (1989) Ltd. (Vita), requested that
the Department conduct an
1 The petitioners are Maui Pineapple Company
Ltd. and the International Longshoreman’s and
Warehouseman’s Union.
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administrative review of its sales and
entries of subject merchandise into the
United Stated during the POR.
Additionally, in accordance with 19
CFR § 351.213(b)(1), on July 29, 2005,
the petitioners requested that the
Department conduct a review of
Tropical Food Industries Co., Ltd.
(TROFCO), The Prachuab Fruit Canning
Company (PRAFT), and Vita. On August
29, 2005, the Department initiated an
administrative review of TROFCO,
PRAFT, and Vita. See Initiation of
Antidumping and Countervailing Duty
Administrative Reviews and Requests
for Revocation in Part, 70 FR 51009
(August 29, 2005).
On August 5, 2005, the Department
issued its antidumping questionnaire to
TROFCO, PRAFT, and Vita. On August
10, 2005, PRAFT informed the
Department that it had no U.S. sales or
shipments of the subject merchandise
during the POR. In August and
September 2005, Vita responded to the
Department’s antidumping
questionnaire. Subsequently, the
Department issued supplemental
questionnaires to Vita. Throughout this
administrative review, the petitioners
have submitted comments regarding
Vita’s questionnaire responses. In a
letter submitted to the Department on
August 24, TROFCO requested an
extension of time to respond to the
Department’s questionnaire. Based on
TROFCO’s request, the Department
granted TROFCO an extension of time to
respond to section A of the
questionnaire until September 12, 2005,
and to sections B, C, and D of the
questionnaire until September 27, 2005.
However, TROFCO did not respond to
the Department’s questionnaire. On
October 6, 2005, the Department issued
a letter to TROFCO requesting that it
explain in writing whether it had no
shipment or sales of CPF to the United
States during the POR. In the letter, we
informed TROFCO that if it did not
respond to the Department’s letter by
October 13, 2005, the Department may
conclude that TROFCO decided not to
cooperate and may use facts available
that are adverse to TROFCO’s interests
in determining the company’s dumping
margin. The Department did not receive
a response from TROFCO.
Pursuant to section 751(a)(3)(A) of the
Tariff Act of 1930, as amended (the Act),
the Department may extend the
deadline for completion of an
administrative review if it determines
that it is not practicable to complete the
review within the statutory time limit of
245 days. On March 16, 2006, the
Department extended the time limit for
the preliminary results of review until
July 31, 2006 (see Canned Pineapple
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Fruit From Thailand: Notice of
Extension of Time Limit for Preliminary
Results of Antidumping Duty
Administrative Review, 71 FR 14497
(March 22, 2006)).
The Department is conducting this
administrative review in accordance
with section 751 of the Act.
Period of Review
The POR is July 1, 2004, through June
30, 2005.
Scope of the Order
The product covered by the order is
canned pineapple fruit, defined as
pineapple processed and/or prepared
into various product forms, including
rings, pieces, chunks, tidbits, and
crushed pineapple, that is packed and
cooked in metal cans with either
pineapple juice or sugar syrup added.
Imports of canned pineapple fruit are
currently classifiable under subheadings
2008.20.0010 and 2008.20.0090 of the
Harmonized Tariff Schedule of the
United States (HTSUS). HTSUS
2008.20.0010 covers canned pineapple
fruit packed in a sugar–based syrup;
HTSUS 2008.20.0090 covers CPF
packed without added sugar (i.e., juice–
packed). The HTSUS subheadings are
provided for convenience and customs
purposes. The written description of the
merchandise covered by this order is
dispositive.
Partial Preliminary Rescission of
Review
As noted above, PRAFT informed the
Department that it had no shipments of
subject merchandise to the United
States during the POR. After receiving
PRAFT’s ‘‘no shipments’’ claim, the
Department examined CBP entry data
for the POR. These data support the
conclusion that there were no entries,
exports, or sales of subject merchandise
from PRAFT during the POR. See
memorandum to the file from Magd
Zalok dated May 15, 2006. Further, on
May 22, 2006, the Department requested
that CBP notify it within 10 days if CBP
had evidence of exports of subject
merchandise from PRAFT during the
POR. CBP has not notified the
Department of such exports. See the
memorandum to the file from Magd
Zalok dated June 15, 2006. Therefore, in
accordance with 19 CFR § 351.213(d)(3),
and consistent with the Department’s
practice, we are preliminarily
rescinding our review of PRAFT. See,
e.g., Certain Steel Concrete Reinforcing
Bars From Turkey; Final Results,
Rescission of Antidumping Duty
Administrative Review in Part, and
Determination Not To Revoke in Part, 68
FR 53127, 53128 (September 9, 2003).
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Use of Adverse Facts Available (AFA)
Section 776(a)(2) of the Act provides
that, if an interested party (A)
Withholds information requested by the
Department, (B) fails to provide such
information by the deadline, or in the
form or manner requested, (C)
significantly impedes a proceeding, or
(D) provides information that cannot be
verified, the Department shall use,
subject to sections 782(d) and (e) of the
Act, facts otherwise available in
reaching the applicable determination.
Section 782(d) of the Act provides
that, if the Department determines that
a response to a request for information
does not comply with the request, the
Department will inform the person
submitting the response of the nature of
the deficiency and shall, to the extent
practicable, provide that person the
opportunity to remedy or explain the
deficiency. If that person submits
further information that continues to be
unsatisfactory, or this information is not
submitted within the applicable time
limits, the Department may, subject to
section 782(e) of the Act, disregard all
or part of the original and subsequent
responses, as appropriate.
The evidence on the record of this
review establishes that, pursuant to
section 776(a)(2)(A) and (C) of the Act,
the use of total facts available is
warranted in determining the dumping
margin for TROFCO because this
company failed to provide requested
information. Specifically, TROFCO
failed to respond to the Department’s
antidumping questionnaire.
On October 6, 2005, the Department
informed TROFCO by letter that failure
to respond to the request for information
by October 13, 2005, may result in the
use of AFA in determining its dumping
margin. TROFCO, however, did not
respond to the Department’s October 6,
2005, letter. Because TROFCO failed to
provide any of the necessary
information requested by the
Department and thus significantly
impeded this segment of the proceeding,
pursuant to sections 776(a)(2)(A) and (C)
of the Act, we have based the dumping
margin for TROFCO on the facts
otherwise available (FA).
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Use of Adverse Inferences
Section 776(b) of the Act states that if
the Department ‘‘finds that an interested
party has failed to cooperate by not
acting to the best of its ability to comply
with a request for information from the
administering authority or the
Commission, the administering
authority or the Commission ..., in
reaching the applicable determination
under this title, may use an inference
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that is adverse to the interests of that
party in selecting from among the facts
otherwise available.’’ See also Statement
of Administrative Action (SAA)
accompanying the Uruguay Round
Agreements Act (URAA), H. Rep. No.
103–316 at 870 (1994). Section 776(b) of
the Act goes on to note that an adverse
inference may include reliance on
information derived from (1) the
petition; (2) a final determination in the
investigation under this title; (3) any
previous review under section 751 or
determination under section 753; or (4)
any other information on the record.
Adverse inferences are appropriate ‘‘to
ensure that the party does not obtain a
more favorable result by failing to
cooperate than if it had cooperated
fully.’’ See SAA at 870. The Court of
Appeals for the Federal Circuit (CAFC),
in Nippon Steel Corporation v. United
States, 337 F.3d 1373, 1380 (Fed. Cir.
2003), held that the Department need
not show intentional conduct existed on
the part of the respondent, but merely
that a ‘‘failure to cooperate to the best
of a respondent’s ability’’ existed, i.e.,
information was not provided ‘‘under
circumstances in which it is reasonable
to conclude that less than full
cooperation has been shown.’’ Id.
The record shows that TROFCO failed
to cooperate to the best of its ability
within the meaning of section 776(b) of
the Act. As noted above, TROFCO failed
to provide any response to the
Department’s requests for information.
As a general matter, it is reasonable for
the Department to assume that TROFCO
possessed the records necessary to
participate in this review. Thus, by not
supplying the information the
Department requested, TROFCO failed
to cooperate to the best of its ability. As
TROFCO failed to cooperate to the best
of its ability, we are applying an adverse
inference in determining its dumping
margin pursuant to section 776(b) of the
Act. As AFA, we have preliminarily
assigned to TROFCO a dumping margin
of 51.16 percent, the highest margin
determined for any respondent during
any segment of this proceeding,
consistent with section 776(b)(2) of the
Act. This rate was calculated for a
respondent in the less than fair value
investigation. See Notice of
Antidumping Duty Order and Amended
Final Determination: Canned Pineapple
Fruit From Thailand, 60 FR 36775 (July
18, 1995).
Corroboration of Information
Section 776(c) of the Act requires the
Department, to the extent practicable, to
corroborate secondary information used
as FA based on independent sources
that are reasonably at its disposal.
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Secondary information is defined as
‘‘{i}nformation derived from the
petition that gave rise to the
investigation or review, the final
determination concerning the subject
merchandise, or any previous review
under section 751 concerning the
subject merchandise.’’ See SAA at 870
and 19 CFR § 351.308(c).
The SAA clarifies that ‘‘corroborate’’
means that the Department will satisfy
itself that the secondary information to
be used has probative value (see SAA at
870). The SAA also states that
independent sources used to corroborate
such information may include, for
example, published price lists, official
import statistics and customs data, and
information obtained from interested
parties during the particular
investigation or review. Id. To
corroborate secondary information, the
Department will, to the extent
practicable, examine the reliability and
relevance of the information to be used.
However, unlike other types of
information, such as input costs or
selling expenses, there are no
independent sources to establish the
reliability of calculated dumping
margins. Thus, in an administrative
review, if the Department chooses as
total AFA a calculated dumping margin
from a prior segment of the proceeding,
it is not necessary to question the
reliability of the margin for that time
period. With respect to the relevancy
aspect of corroboration, however, the
Department will consider information
reasonably at its disposal as to whether
there are circumstances that would
render a dumping margin inappropriate.
Where circumstances indicate that the
selected dumping margin is not
appropriate as AFA, the Department
will disregard the margin and determine
an appropriate dumping margin. See,
e.g., Fresh Cut Flowers from Mexico;
Final Results of Antidumping Duty
Administrative Review, 61 FR 6812,
6814 (February 22, 1996) (where the
Department disregarded the highest
dumping margin as AFA because the
margin was based on another company’s
uncharacteristic business expense
resulting in an unusually high dumping
margin). We have preliminarily
determined that the 51.16 percent rate is
appropriate because it was calculated
for another respondent in a prior
segment of this proceeding, and it has
not been judicially invalidated. Thus,
we consider the calculated rate of 51.16
to be corroborated.
Comparison Methodology
In order to determine whether Vita
sold CPF to the United States at prices
less than NV, the Department compared
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the export price (EP) of individual U.S.
sales to the monthly weighted–average
NV of sales of the foreign like product
made in the ordinary course of trade
(see section 777A(d)(2) of the Act; see
also section 773(a)(1)(B)(i) of the Act).
Section 771(16) of the Act defines
foreign like product as merchandise that
is identical or similar to subject
merchandise and produced by the same
person and in the same country as the
subject merchandise. Thus, we
considered all products covered by the
scope of the order, that were produced
by the same person and in the same
country as the subject merchandise, and
sold by Vita in the comparison market
during the POR, to be foreign like
products for the purpose of determining
appropriate product comparisons to CPF
sold in the United States. The
Department compared U.S. sales to sales
made in the comparison market within
the contemporaneous window period,
which extends from three months prior
to the month in which the U.S. sale was
made until two months after the month
in which the U.S. sale was made. Where
there were no sales of identical
merchandise made in the comparison
market in the ordinary course of trade,
the Department compared U.S. sales to
sales of the most similar foreign like
product made in the ordinary course of
trade. In making product comparisons,
the Department selected identical and
most similar foreign like products based
on the physical characteristics reported
by Vita in the following order of
importance: weight, form, variety, and
grade. Where there were no appropriate
sales of foreign like product to compare
to a U.S. sale, we compared the price of
the U.S. sale to constructed value (CV),
in accordance with section 773(a)(4) of
the Act.
Export Price
The Department based the price of
each of Vita’s U.S. sales of subject
merchandise on EP, as defined in
section 772(a) of the Act, because the
merchandise was sold, prior to
importation, to unaffiliated purchasers
in the United States, or to unaffiliated
purchasers for exportation to the United
States and the use of constructed export
price was not otherwise warranted
based on the facts on the record. In
accordance with section 772 (a) and (c)
of the Act, we calculated EP using the
prices Vita charged for packed subject
merchandise, from which we made
deductions for movement expenses,
including, where applicable, charges for
transportation, terminal handling,
container stuffing, bill of lading
preparation, Customs clearance, and
legal and port fees documentation. See
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Analysis Memorandum for Vita Food
Factory (1989) Co., Ltd., (Vita Analysis
Memorandum) dated concurrently with
this notice. We did not calculate EP
using the post–sale, post–POR price
adjustments reported by Vita because
Vita failed to demonstrate that it is
entitled to these adjustments (the post–
sale adjustments benefitted Vita, and
thus Vita bore the burden to
demonstrate that it is entitled to these
adjustments). See Corus Engineering
Steels Ltd. v. United States, Slip Op.
2003–110, 2003 CIT Lexis 110 at * 11
(‘‘The burden of proof is upon the
claimant to prove entitlement.’’). See
also Vita’s Post Sale Price Adjustment
Memorandum, dated concurrently with
this notice.
Normal Value
After testing home market viability
and whether comparison market sales
were at below–cost prices, we
calculated NV for Vita as noted in the
‘‘Price–to-Price Comparisons’’ and
‘‘Price–to-CV Comparisons’’ sections of
this notice.
A. Home Market Viability
In accordance with section
773(a)(1)(C) of the Act, in order to
determine whether there was a
sufficient volume of sales in the home
market to serve as a viable basis for
calculating NV (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 compared the
aggregate volume of Vita’s home market
sales of the foreign like product to the
aggregate volume of its U.S. sales of
subject merchandise. Because the
aggregate volume of Vita’s home market
sales of foreign like product is less than
five percent of the aggregate volume of
its U.S. sales of subject merchandise, we
based NV on sales of the foreign like
product in a country other than Vita’s
home market. See section
773(a)(1)(B)(ii) of the Act. Specifically,
we based NV for Vita on sales of the
foreign like product in the Netherlands,
the third–country market with the
greatest volume of foreign like product
sales.
B. Cost of Production (COP) Analysis
In the most recently completed
administrative review of the
antidumping duty order on CPF from
Thailand, the Department determined
that Vita sold foreign like product at
prices below the cost of producing the
product and excluded such sales from
the calculation of NV. As a result, in
accordance with section 773(b)(2)(A)(ii)
of the Act, the Department determined
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that there are reasonable grounds to
believe or suspect that during the
instant POR, Vita sold the foreign like
product at prices below the cost of
producing the product. Thus, the
Department initiated a sales below cost
inquiry with respect to Vita.
1. Calculation of COP
In accordance with section 773(b)(3)
of the Act, for each unique foreign like
product sold by Vita during the POR, we
calculated a weighted–average COP
based on the sum of the respondent’s
materials and fabrication costs, selling,
general and administrative (SG&A)
expenses, including interest expenses,
and packing costs. Consistent with the
position taken by the Department in
prior segments of this proceeding, for
reporting purposes, Vita allocated joint
product costs between solid and juice
products using the net realizable value
of the products during the five-year
period 1990 through 1994. We relied on
the costs submitted by Vita without
exception.
2. Test of Comparison Market Sales
Prices
In order to determine whether sales
were made at prices below the COP, on
a product–specific basis we compared
the respondent’s weighted–average
COPs to the prices of its comparison
market sales of foreign like product, as
required under section 773(b) of the Act.
In accordance with sections 773(b)(1)(A)
and (B) of the Act, in determining
whether to disregard comparison market
sales made at prices less than the COP,
we examined whether such sales were
made: (1) in substantial quantities
within an extended period of time; and
(2) at prices which permitted the
recovery of all costs within a reasonable
period of time. We compared the COP
to comparison market sales prices, less
any applicable movement charges.
3. Results of the COP Test
Pursuant to section 773(b)(2)(C) of the
Act, where less than 20 percent of a
respondent’s sales of a given product
were made at prices less than the COP,
we did not disregard any below–cost
sales of that product because the below–
cost sales were not made in ‘‘substantial
quantities.’’ Where 20 percent or more
of a respondent’s sales of a given
product were made at prices less than
the COP during the POR, we determined
such sales to have been made in
‘‘substantial quantities’’ and within an
extended period of time (i.e., one year)
pursuant to sections 773(b)(2)(B) and (C)
of the Act. Based on our comparison of
POR average costs to reported prices, we
also determined, in accordance with
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production and sale of the foreign like
product, in the ordinary course of trade,
for consumption in the Netherlands. We
based selling expenses on weighted–
average actual comparison market direct
and indirect selling expenses.
Price–to-Price Comparisons
Where it was appropriate to base NV
on prices, we used the prices at which
the foreign like product was first sold
for consumption in the comparison
market, in the usual commercial
quantities, in the ordinary course of
trade, and, to the extent possible, at the
same level of trade (LOT) as the
comparison U.S. sale.
We based NV on the prices of Vita’s
sales to unaffiliated customers in the
Netherlands. We made adjustments,
where appropriate, for physical
differences in the merchandise in
accordance with section 773(a)(6)(C)(ii)
of the Act. In accordance with sections
773(a)(6)(A), (B), and (C) of the Act,
where appropriate, we deducted from
the starting price movement expenses,
including, where applicable, charges for
transportation, terminal handling,
container stuffing, bill of lading
preparation, customs clearance, and
legal and port fees documentation. We
also made circumstance of sale
adjustments to account for differences
in packing, credit and other direct
selling expenses incurred in the
comparison and U.S. markets. In
addition, where applicable, pursuant to
19 CFR § 351.410 (e), we made a
reasonable allowance for other selling
expenses where commissions were paid
in only one of the markets under
consideration. See Vita Analysis
Memorandum. In accordance with the
Department’s practice, where all
contemporaneous matches to a U.S. sale
resulted in difference–in-merchandise
adjustments exceeding 20 percent of the
cost of manufacturing the product sold
in the United States, we based NV on
CV.
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section 773(b)(2)(D) of the Act, that
these sales were not made at prices
which would permit recovery of all
costs within a reasonable period of time.
As a result, we disregarded these
below–cost sales.
Level of Trade
In accordance with section
773(a)(1)(B) of the Act, to the extent
practicable, we determined NV based on
sales in the comparison market at the
same LOT as the EP. The NV LOT is
based on the starting price of the sales
in the comparison market or, when NV
is based on CV, the starting price of the
sales from which we derive SG&A
expenses and profit. For EP sales, the
U.S. LOT is based on the starting price
of the sales to the U.S. market.
To determine whether NV sales are at
a different LOT than the EP sales, 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
a LOT adjustment under section
773(a)(7)(A) of the Act. In determining
whether separate LOTs exist, we
obtained information from Vita
regarding the marketing stages for the
reported U.S. and comparison market
sales, including a description of the
selling activities performed by Vita for
each channel of distribution. Generally,
if the reported LOTs are the same, the
functions and activities of the seller at
each level should be similar.
Conversely, if a party reports that LOTs
are different for different groups of
sales, the selling functions and activities
of the seller for each group should be
dissimilar.
Vita reported that it sold the
merchandise under review to two types
of customers, sales agents and end
users, in the United States and the
Netherlands through one channel of
distribution in each market. See Vita’s
September 22, 2005, and November 25,
2005, questionnaire responses at 18–24
and 11–13, respectively. In each
channel of distribution, Vita engaged in
the following selling activities for both
types of customers: order processing,
packing, freight and delivery, and
paying sales commissions. Because the
one sales channel in the United States
involves the same functions for all sales,
and the one sales channel in the
Netherlands also involves the same
functions for all sales, we have
Price–to-CV Comparisons
In accordance with section 773(a)(4)
of the Act, we based NV on CV when
we were unable to compare the U.S. sale
to a comparison market sale of an
identical or similar product. For each
unique CPF product sold by Vita in the
United States during the POR, we
calculated a weighted–average CV based
on the sum of the respondent’s materials
and fabrication costs, SG&A expenses,
including interest expenses, packing
costs, and profit. In accordance with
section 773(e)(2)(A) of the Act, we based
SG&A expenses and profit on the
amounts incurred and realized by the
respondent in connection with the
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44259
preliminarily determined that there is
one LOT in the United States and one
LOT in the Netherlands. Moreover,
because Vita performed nearly identical
selling functions for U.S. and Dutch
sales (the only difference being that, at
times, Vita arranged the international
shipping for Dutch sales, whereas it did
not provide this service for U.S. sales),
we have preliminarily determined that,
during the POR, Vita sold the foreign
like product and subject merchandise at
the same LOT. Therefore, we have
determined that a LOT adjustment is not
warranted.
Currency Conversion
Pursuant to section 773A(a) of the
Act, we converted amounts expressed in
foreign currencies into U.S. dollar
amounts based on the exchange rates in
effect on the dates of the U.S. sales, as
certified by the Federal Reserve Bank.
Preliminary Results of Review
As a result of this review, we
preliminarily determined that the
following weighted–average dumping
margins exist for the period July 1, 2004,
through June 30, 2005:
Manufacturer/Exporter
Vita Food Factory
(1989) Ltd. .................
Tropical Food Industries
Co., Ltd. ....................
Margin (percent)
16.14
51.16
Public Comment
Within 10 days of publicly
announcing the preliminary results of
this review, we will disclose to
interested parties, any calculations
performed in connection with the
preliminary results. See 19 CFR
§ 351.224(b). Any interested party may
request a hearing within 30 days of the
publication of this notice in the Federal
Register. See 19 CFR § 351.310(c). If
requested, a hearing will be held 44
days after the date of publication of this
notice in the Federal Register, or the
first workday thereafter. Interested
parties are invited to comment on the
preliminary results of this review. The
Department will consider case briefs
filed by interested parties within 30
days after the date of publication of this
notice in the Federal Register. Also,
interested parties may file rebuttal
briefs, limited to issues raised in the
case briefs. The Department will
consider rebuttal briefs filed not later
than five days after the time limit for
filing case briefs. Parties who submit
arguments are requested to submit with
each argument: (1) A statement of the
issue, (2) a brief summary of the
argument and (3) a table of authorities.
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Federal Register / Vol. 71, No. 150 / Friday, August 4, 2006 / Notices
gechino on PROD1PC61 with NOTICES
Further, we request that parties
submitting written comments provide
the Department with a diskette
containing an electronic copy of the
public version of such comments.
Unless the deadline for issuing the final
results of review is extended, the
Department will issue the final results
of this administrative review, including
the results of its analysis of issues raised
in the written comments, within 120
days of publication of the preliminary
results in the Federal Register.
Assessment Rates
In accordance with 19 CFR
§ 351.212(b)(1), in these preliminary
results of review, we calculated
importer/customer–specific assessment
rates for Vita’s subject merchandise.
Since Vita did not report the entered
value for its sales, we calculated per–
unit assessment rates for its
merchandise by summing, on an
importer or customer–specific basis, the
dumping margins calculated for all U.S.
sales to the importer or customer, and
dividing this amount by the total
quantity of those sales. If the importer/
customer–specific assessment rate is
above de minimis (i.e., 0.50 percent ad
valorem or greater), we will instruct
CBP to assess the importer/customer–
specific rate uniformly, as appropriate,
on all entries of subject merchandise
during the POR that were entered by the
importer or sold to the customer. To
determine whether the per–unit duty
assessment rates were de minimis (i.e.,
less than 0.50 percent ad valorem), in
accordance with the requirement set
forth in 19 CFR § 351.106(c)(2), we
calculated importer/customer–specific
ad valorem ratios based on the
estimated entered value. For TROFCO,
the respondent receiving a dumping
margin based upon AFA, we will
instruct CBP to liquidate entries
according to the AFA ad valorem rate.
Within 15 days of publication of the
final results of review, the Department
will issue instructions to CBP directing
it to assess the final importer/customer–
specific assessment rates (if above de
minimis) uniformly on all entries of
subject merchandise made by the
relevant importer during the POR. The
Department clarified its ‘‘automatic
assessment’’ regulation on May 6, 2003
(68 FR 23954). This clarification applies
to POR entries of subject merchandise
produced by companies examined in
this review (i.e., companies for which a
dumping margin was calculated) where
the companies did not know that their
merchandise was destined for the
United States. In such instances, we will
instruct CBP to liquidate unreviewed
entries at the all–others rate if there is
VerDate Aug<31>2005
22:39 Aug 03, 2006
Jkt 208001
no rate for the intermediate
company(ies) involved in the
transaction. For a full discussion of this
clarification, see Antidumping and
Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68
FR 23954 (May 6, 2003).
Dated: July 31, 2006.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E6–12654 Filed 8–3–06; 8:45 am]
Cash Deposit Requirements
DEPARTMENT OF COMMERCE
The following cash deposit
requirements will be effective for all
shipments of the subject merchandise
entered, or withdrawn from warehouse,
for consumption on or after the
publication date of the final results of
this administrative review, as provided
by section 751(a)(1) of the Act: (1) The
cash deposit rate for the reviewed
companies will be the rate established
in the final results of this review (except
that if the rate for a particular company
is de minimis, i.e., less than 0.5 percent,
no cash deposit will be required for that
company); (2) for previously
investigated or reviewed companies not
listed above, the cash deposit rate will
continue to be the company–specific
rate published for the most recent
period; (3) if the exporter is not a firm
covered in this review, a prior review,
or the less–than-fair–value (LTFV)
investigation, but the manufacturer is,
the cash deposit rate will be the rate
established for the most recent period
for the manufacturer of the subject
merchandise; and (4) the cash deposit
rate for all other manufacturers or
exporters will continue to be the ‘‘all
others’’ rate of 24.64 percent, which is
the ‘‘all others’’ rate established in the
LTFV investigation. These cash deposit
rates, when imposed, shall remain in
effect until publication of the final
results of the next administrative
review.
National Oceanic and Atmospheric
Administration
Notification to Importers
This notice also 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 and 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 Act.
PO 00000
Frm 00007
Fmt 4703
Sfmt 4703
BILLING CODE 3510–DS–S
[I.D. 072806B]
Fisheries of the Caribbean, Gulf of
Mexico, and South Atlantic; South
Atlantic Snapper Grouper Fishery
Management Plan; Amendment 15
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice of intent to prepare a
draft environmental impact statement;
supplement; request for comments.
AGENCY:
SUMMARY: The South Atlantic Fishery
Management Council (Council) is
preparing a Draft Environmental Impact
Statement (DEIS) to assess the
environmental impacts of a range of
management actions proposed in its
draft Amendment 15 to the Snapper
Grouper Fishery Management Plan of
the South Atlantic (FMP). This notice is
intended to supplement notices
published in January 2002, September
2003, and July 2005, announcing the
preparations of DEISs for FMP
Amendments 13, 13B, and 13C,
respectively.
DATES: Comments on the scope of the
DEIS will be accepted through
September 5, 2006.
ADDRESSES: Comments should be sent to
Jack McGovern, National Marine
Fisheries Service, Southeast Regional
Office, 263 13th Avenue South, St.
Petersburg, FL 33701; Phone: 727–824–
5311; Fax: 727–824–5308; email:
John.McGovern@noaa.gov.
FOR FURTHER INFORMATION CONTACT: Kim
Iverson, Public Information Officer, toll
free 1–866–SAFMC–10 or 843–571–
4366; kim.iverson@safmc.net.
SUPPLEMENTARY INFORMATION: The
snapper grouper fishery operating in the
South Atlantic exclusive economic zone
is managed under the FMP. Following
Council preparation, this FMP was
approved and implemented by NMFS in
March 1983, under the authority of the
Magnuson-Stevens Fishery
Conservation and Management Act
(Magnuson-Stevens Act).
The actions proposed in FMP
Amendment 15 originated from the
E:\FR\FM\04AUN1.SGM
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Agencies
[Federal Register Volume 71, Number 150 (Friday, August 4, 2006)]
[Notices]
[Pages 44256-44260]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-12654]
[[Page 44256]]
=======================================================================
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-549-813]
Canned Pineapple Fruit from Thailand: Preliminary Results of
Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests by certain producers/exporters of the
subject merchandise and the petitioners,\1\ the Department of Commerce
(the Department) is conducting an administrative review of the
antidumping duty order on canned pineapple fruit (CPF) from Thailand.
This review covers two producers/exporters of the subject merchandise.
The period of review (POR) is July 1, 2004, through June 30, 2005.
---------------------------------------------------------------------------
\1\ The petitioners are Maui Pineapple Company Ltd. and the
International Longshoreman's and Warehouseman's Union.
---------------------------------------------------------------------------
The Department has preliminarily determined that the companies
subject to this review made U.S. sales at prices less than normal value
(NV). If these preliminary results are adopted in our final results of
administrative review, we will instruct U.S. Customs and Border
Protection (CBP) to assess antidumping duties on all appropriate
entries. Interested parties are invited to comment on these preliminary
results of review. We will issue the final results of review no later
than 120 days from the date of publication of this notice.
EFFECTIVE DATE: August 4, 2006.
FOR FURTHER INFORMATION CONTACT: Magd Zalok or Howard Smith, AD/CVD
Operations, Office 4, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230, telephone: (202) 482-
4162 and (202) 482-5193, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 1, 2005, the Department published in the Federal Register a
notice of ``Opportunity to Request Administrative Review'' of the
antidumping duty order on CPF from Thailand. See Antidumping or
Countervailing Duty Order, Finding, or Suspended Investigation;
Opportunity To Request Administrative Review, 70 FR 38099 (July 1,
2005). In accordance with 19 CFR Sec. 351.213(b)(2), on July 19, 2005,
the producer/exporter, Vita Food Factory (1989) Ltd. (Vita), requested
that the Department conduct an administrative review of its sales and
entries of subject merchandise into the United Stated during the POR.
Additionally, in accordance with 19 CFR Sec. 351.213(b)(1), on July
29, 2005, the petitioners requested that the Department conduct a
review of Tropical Food Industries Co., Ltd. (TROFCO), The Prachuab
Fruit Canning Company (PRAFT), and Vita. On August 29, 2005, the
Department initiated an administrative review of TROFCO, PRAFT, and
Vita. See Initiation of Antidumping and Countervailing Duty
Administrative Reviews and Requests for Revocation in Part, 70 FR 51009
(August 29, 2005).
On August 5, 2005, the Department issued its antidumping
questionnaire to TROFCO, PRAFT, and Vita. On August 10, 2005, PRAFT
informed the Department that it had no U.S. sales or shipments of the
subject merchandise during the POR. In August and September 2005, Vita
responded to the Department's antidumping questionnaire. Subsequently,
the Department issued supplemental questionnaires to Vita. Throughout
this administrative review, the petitioners have submitted comments
regarding Vita's questionnaire responses. In a letter submitted to the
Department on August 24, TROFCO requested an extension of time to
respond to the Department's questionnaire. Based on TROFCO's request,
the Department granted TROFCO an extension of time to respond to
section A of the questionnaire until September 12, 2005, and to
sections B, C, and D of the questionnaire until September 27, 2005.
However, TROFCO did not respond to the Department's questionnaire. On
October 6, 2005, the Department issued a letter to TROFCO requesting
that it explain in writing whether it had no shipment or sales of CPF
to the United States during the POR. In the letter, we informed TROFCO
that if it did not respond to the Department's letter by October 13,
2005, the Department may conclude that TROFCO decided not to cooperate
and may use facts available that are adverse to TROFCO's interests in
determining the company's dumping margin. The Department did not
receive a response from TROFCO.
Pursuant to section 751(a)(3)(A) of the Tariff Act of 1930, as
amended (the Act), the Department may extend the deadline for
completion of an administrative review if it determines that it is not
practicable to complete the review within the statutory time limit of
245 days. On March 16, 2006, the Department extended the time limit for
the preliminary results of review until July 31, 2006 (see Canned
Pineapple Fruit From Thailand: Notice of Extension of Time Limit for
Preliminary Results of Antidumping Duty Administrative Review, 71 FR
14497 (March 22, 2006)).
The Department is conducting this administrative review in
accordance with section 751 of the Act.
Period of Review
The POR is July 1, 2004, through June 30, 2005.
Scope of the Order
The product covered by the order is canned pineapple fruit, defined
as pineapple processed and/or prepared into various product forms,
including rings, pieces, chunks, tidbits, and crushed pineapple, that
is packed and cooked in metal cans with either pineapple juice or sugar
syrup added. Imports of canned pineapple fruit are currently
classifiable under subheadings 2008.20.0010 and 2008.20.0090 of the
Harmonized Tariff Schedule of the United States (HTSUS). HTSUS
2008.20.0010 covers canned pineapple fruit packed in a sugar-based
syrup; HTSUS 2008.20.0090 covers CPF packed without added sugar (i.e.,
juice-packed). The HTSUS subheadings are provided for convenience and
customs purposes. The written description of the merchandise covered by
this order is dispositive.
Partial Preliminary Rescission of Review
As noted above, PRAFT informed the Department that it had no
shipments of subject merchandise to the United States during the POR.
After receiving PRAFT's ``no shipments'' claim, the Department examined
CBP entry data for the POR. These data support the conclusion that
there were no entries, exports, or sales of subject merchandise from
PRAFT during the POR. See memorandum to the file from Magd Zalok dated
May 15, 2006. Further, on May 22, 2006, the Department requested that
CBP notify it within 10 days if CBP had evidence of exports of subject
merchandise from PRAFT during the POR. CBP has not notified the
Department of such exports. See the memorandum to the file from Magd
Zalok dated June 15, 2006. Therefore, in accordance with 19 CFR Sec.
351.213(d)(3), and consistent with the Department's practice, we are
preliminarily rescinding our review of PRAFT. See, e.g., Certain Steel
Concrete Reinforcing Bars From Turkey; Final Results, Rescission of
Antidumping Duty Administrative Review in Part, and Determination Not
To Revoke in Part, 68 FR 53127, 53128 (September 9, 2003).
[[Page 44257]]
Use of Adverse Facts Available (AFA)
Section 776(a)(2) of the Act provides that, if an interested party
(A) Withholds information requested by the Department, (B) fails to
provide such information by the deadline, or in the form or manner
requested, (C) significantly impedes a proceeding, or (D) provides
information that cannot be verified, the Department shall use, subject
to sections 782(d) and (e) of the Act, facts otherwise available in
reaching the applicable determination.
Section 782(d) of the Act provides that, if the Department
determines that a response to a request for information does not comply
with the request, the Department will inform the person submitting the
response of the nature of the deficiency and shall, to the extent
practicable, provide that person the opportunity to remedy or explain
the deficiency. If that person submits further information that
continues to be unsatisfactory, or this information is not submitted
within the applicable time limits, the Department may, subject to
section 782(e) of the Act, disregard all or part of the original and
subsequent responses, as appropriate.
The evidence on the record of this review establishes that,
pursuant to section 776(a)(2)(A) and (C) of the Act, the use of total
facts available is warranted in determining the dumping margin for
TROFCO because this company failed to provide requested information.
Specifically, TROFCO failed to respond to the Department's antidumping
questionnaire.
On October 6, 2005, the Department informed TROFCO by letter that
failure to respond to the request for information by October 13, 2005,
may result in the use of AFA in determining its dumping margin. TROFCO,
however, did not respond to the Department's October 6, 2005, letter.
Because TROFCO failed to provide any of the necessary information
requested by the Department and thus significantly impeded this segment
of the proceeding, pursuant to sections 776(a)(2)(A) and (C) of the
Act, we have based the dumping margin for TROFCO on the facts otherwise
available (FA).
Use of Adverse Inferences
Section 776(b) of the Act states that if the Department ``finds
that an interested party has failed to cooperate by not acting to the
best of its ability to comply with a request for information from the
administering authority or the Commission, the administering authority
or the Commission ..., in reaching the applicable determination under
this title, may use an inference that is adverse to the interests of
that party in selecting from among the facts otherwise available.'' See
also Statement of Administrative Action (SAA) accompanying the Uruguay
Round Agreements Act (URAA), H. Rep. No. 103-316 at 870 (1994). Section
776(b) of the Act goes on to note that an adverse inference may include
reliance on information derived from (1) the petition; (2) a final
determination in the investigation under this title; (3) any previous
review under section 751 or determination under section 753; or (4) any
other information on the record. Adverse inferences are appropriate
``to ensure that the party does not obtain a more favorable result by
failing to cooperate than if it had cooperated fully.'' See SAA at 870.
The Court of Appeals for the Federal Circuit (CAFC), in Nippon Steel
Corporation v. United States, 337 F.3d 1373, 1380 (Fed. Cir. 2003),
held that the Department need not show intentional conduct existed on
the part of the respondent, but merely that a ``failure to cooperate to
the best of a respondent's ability'' existed, i.e., information was not
provided ``under circumstances in which it is reasonable to conclude
that less than full cooperation has been shown.'' Id.
The record shows that TROFCO failed to cooperate to the best of its
ability within the meaning of section 776(b) of the Act. As noted
above, TROFCO failed to provide any response to the Department's
requests for information. As a general matter, it is reasonable for the
Department to assume that TROFCO possessed the records necessary to
participate in this review. Thus, by not supplying the information the
Department requested, TROFCO failed to cooperate to the best of its
ability. As TROFCO failed to cooperate to the best of its ability, we
are applying an adverse inference in determining its dumping margin
pursuant to section 776(b) of the Act. As AFA, we have preliminarily
assigned to TROFCO a dumping margin of 51.16 percent, the highest
margin determined for any respondent during any segment of this
proceeding, consistent with section 776(b)(2) of the Act. This rate was
calculated for a respondent in the less than fair value investigation.
See Notice of Antidumping Duty Order and Amended Final Determination:
Canned Pineapple Fruit From Thailand, 60 FR 36775 (July 18, 1995).
Corroboration of Information
Section 776(c) of the Act requires the Department, to the extent
practicable, to corroborate secondary information used as FA based on
independent sources that are reasonably at its disposal. Secondary
information is defined as ``{i{time} nformation derived from the
petition that gave rise to the investigation or review, the final
determination concerning the subject merchandise, or any previous
review under section 751 concerning the subject merchandise.'' See SAA
at 870 and 19 CFR Sec. 351.308(c).
The SAA clarifies that ``corroborate'' means that the Department
will satisfy itself that the secondary information to be used has
probative value (see SAA at 870). The SAA also states that independent
sources used to corroborate such information may include, for example,
published price lists, official import statistics and customs data, and
information obtained from interested parties during the particular
investigation or review. Id. To corroborate secondary information, the
Department will, to the extent practicable, examine the reliability and
relevance of the information to be used. However, unlike other types of
information, such as input costs or selling expenses, there are no
independent sources to establish the reliability of calculated dumping
margins. Thus, in an administrative review, if the Department chooses
as total AFA a calculated dumping margin from a prior segment of the
proceeding, it is not necessary to question the reliability of the
margin for that time period. With respect to the relevancy aspect of
corroboration, however, the Department will consider information
reasonably at its disposal as to whether there are circumstances that
would render a dumping margin inappropriate. Where circumstances
indicate that the selected dumping margin is not appropriate as AFA,
the Department will disregard the margin and determine an appropriate
dumping margin. See, e.g., Fresh Cut Flowers from Mexico; Final Results
of Antidumping Duty Administrative Review, 61 FR 6812, 6814 (February
22, 1996) (where the Department disregarded the highest dumping margin
as AFA because the margin was based on another company's
uncharacteristic business expense resulting in an unusually high
dumping margin). We have preliminarily determined that the 51.16
percent rate is appropriate because it was calculated for another
respondent in a prior segment of this proceeding, and it has not been
judicially invalidated. Thus, we consider the calculated rate of 51.16
to be corroborated.
Comparison Methodology
In order to determine whether Vita sold CPF to the United States at
prices less than NV, the Department compared
[[Page 44258]]
the export price (EP) of individual U.S. sales to the monthly weighted-
average NV of sales of the foreign like product made in the ordinary
course of trade (see section 777A(d)(2) of the Act; see also section
773(a)(1)(B)(i) of the Act). Section 771(16) of the Act defines foreign
like product as merchandise that is identical or similar to subject
merchandise and produced by the same person and in the same country as
the subject merchandise. Thus, we considered all products covered by
the scope of the order, that were produced by the same person and in
the same country as the subject merchandise, and sold by Vita in the
comparison market during the POR, to be foreign like products for the
purpose of determining appropriate product comparisons to CPF sold in
the United States. The Department compared U.S. sales to sales made in
the comparison market within the contemporaneous window period, which
extends from three months prior to the month in which the U.S. sale was
made until two months after the month in which the U.S. sale was made.
Where there were no sales of identical merchandise made in the
comparison market in the ordinary course of trade, the Department
compared U.S. sales to sales of the most similar foreign like product
made in the ordinary course of trade. In making product comparisons,
the Department selected identical and most similar foreign like
products based on the physical characteristics reported by Vita in the
following order of importance: weight, form, variety, and grade. Where
there were no appropriate sales of foreign like product to compare to a
U.S. sale, we compared the price of the U.S. sale to constructed value
(CV), in accordance with section 773(a)(4) of the Act.
Export Price
The Department based the price of each of Vita's U.S. sales of
subject merchandise on EP, as defined in section 772(a) of the Act,
because the merchandise was sold, prior to importation, to unaffiliated
purchasers in the United States, or to unaffiliated purchasers for
exportation to the United States and the use of constructed export
price was not otherwise warranted based on the facts on the record. In
accordance with section 772 (a) and (c) of the Act, we calculated EP
using the prices Vita charged for packed subject merchandise, from
which we made deductions for movement expenses, including, where
applicable, charges for transportation, terminal handling, container
stuffing, bill of lading preparation, Customs clearance, and legal and
port fees documentation. See Analysis Memorandum for Vita Food Factory
(1989) Co., Ltd., (Vita Analysis Memorandum) dated concurrently with
this notice. We did not calculate EP using the post-sale, post-POR
price adjustments reported by Vita because Vita failed to demonstrate
that it is entitled to these adjustments (the post-sale adjustments
benefitted Vita, and thus Vita bore the burden to demonstrate that it
is entitled to these adjustments). See Corus Engineering Steels Ltd. v.
United States, Slip Op. 2003-110, 2003 CIT Lexis 110 at * 11 (``The
burden of proof is upon the claimant to prove entitlement.''). See also
Vita's Post Sale Price Adjustment Memorandum, dated concurrently with
this notice.
Normal Value
After testing home market viability and whether comparison market
sales were at below-cost prices, we calculated NV for Vita as noted in
the ``Price-to-Price Comparisons'' and ``Price-to-CV Comparisons''
sections of this notice.
A. Home Market Viability
In accordance with section 773(a)(1)(C) of the Act, in order to
determine whether there was a sufficient volume of sales in the home
market to serve as a viable basis for calculating NV (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 compared the aggregate volume of Vita's home market sales of
the foreign like product to the aggregate volume of its U.S. sales of
subject merchandise. Because the aggregate volume of Vita's home market
sales of foreign like product is less than five percent of the
aggregate volume of its U.S. sales of subject merchandise, we based NV
on sales of the foreign like product in a country other than Vita's
home market. See section 773(a)(1)(B)(ii) of the Act. Specifically, we
based NV for Vita on sales of the foreign like product in the
Netherlands, the third-country market with the greatest volume of
foreign like product sales.
B. Cost of Production (COP) Analysis
In the most recently completed administrative review of the
antidumping duty order on CPF from Thailand, the Department determined
that Vita sold foreign like product at prices below the cost of
producing the product and excluded such sales from the calculation of
NV. As a result, in accordance with section 773(b)(2)(A)(ii) of the
Act, the Department determined that there are reasonable grounds to
believe or suspect that during the instant POR, Vita sold the foreign
like product at prices below the cost of producing the product. Thus,
the Department initiated a sales below cost inquiry with respect to
Vita.
1. Calculation of COP
In accordance with section 773(b)(3) of the Act, for each unique
foreign like product sold by Vita during the POR, we calculated a
weighted-average COP based on the sum of the respondent's materials and
fabrication costs, selling, general and administrative (SG&A) expenses,
including interest expenses, and packing costs. Consistent with the
position taken by the Department in prior segments of this proceeding,
for reporting purposes, Vita allocated joint product costs between
solid and juice products using the net realizable value of the products
during the five-year period 1990 through 1994. We relied on the costs
submitted by Vita without exception.
2. Test of Comparison Market Sales Prices
In order to determine whether sales were made at prices below the
COP, on a product-specific basis we compared the respondent's weighted-
average COPs to the prices of its comparison market sales of foreign
like product, as required under section 773(b) of the Act. In
accordance with sections 773(b)(1)(A) and (B) of the Act, in
determining whether to disregard comparison market sales made at prices
less than the COP, we examined whether such sales were made: (1) in
substantial quantities within an extended period of time; and (2) at
prices which permitted the recovery of all costs within a reasonable
period of time. We compared the COP to comparison market sales prices,
less any applicable movement charges.
3. Results of the COP Test
Pursuant to section 773(b)(2)(C) of the Act, where less than 20
percent of a respondent's sales of a given product were made at prices
less than the COP, we did not disregard any below-cost sales of that
product because the below-cost sales were not made in ``substantial
quantities.'' Where 20 percent or more of a respondent's sales of a
given product were made at prices less than the COP during the POR, we
determined such sales to have been made in ``substantial quantities''
and within an extended period of time (i.e., one year) pursuant to
sections 773(b)(2)(B) and (C) of the Act. Based on our comparison of
POR average costs to reported prices, we also determined, in accordance
with
[[Page 44259]]
section 773(b)(2)(D) of the Act, that these sales were not made at
prices which would permit recovery of all costs within a reasonable
period of time. As a result, we disregarded these below-cost sales.
Price-to-Price Comparisons
Where it was appropriate to base NV on prices, we used the prices
at which the foreign like product was first sold for consumption in the
comparison market, in the usual commercial quantities, in the ordinary
course of trade, and, to the extent possible, at the same level of
trade (LOT) as the comparison U.S. sale.
We based NV on the prices of Vita's sales to unaffiliated customers
in the Netherlands. We made adjustments, where appropriate, for
physical differences in the merchandise in accordance with section
773(a)(6)(C)(ii) of the Act. In accordance with sections 773(a)(6)(A),
(B), and (C) of the Act, where appropriate, we deducted from the
starting price movement expenses, including, where applicable, charges
for transportation, terminal handling, container stuffing, bill of
lading preparation, customs clearance, and legal and port fees
documentation. We also made circumstance of sale adjustments to account
for differences in packing, credit and other direct selling expenses
incurred in the comparison and U.S. markets. In addition, where
applicable, pursuant to 19 CFR Sec. 351.410 (e), we made a reasonable
allowance for other selling expenses where commissions were paid in
only one of the markets under consideration. See Vita Analysis
Memorandum. In accordance with the Department's practice, where all
contemporaneous matches to a U.S. sale resulted in difference-in-
merchandise adjustments exceeding 20 percent of the cost of
manufacturing the product sold in the United States, we based NV on CV.
Price-to-CV Comparisons
In accordance with section 773(a)(4) of the Act, we based NV on CV
when we were unable to compare the U.S. sale to a comparison market
sale of an identical or similar product. For each unique CPF product
sold by Vita in the United States during the POR, we calculated a
weighted-average CV based on the sum of the respondent's materials and
fabrication costs, SG&A expenses, including interest expenses, packing
costs, and profit. In accordance with section 773(e)(2)(A) of the Act,
we based SG&A expenses and profit on the amounts incurred and realized
by the respondent in connection with the production and sale of the
foreign like product, in the ordinary course of trade, for consumption
in the Netherlands. We based selling expenses on weighted-average
actual comparison market direct and indirect selling expenses.
Level of Trade
In accordance with section 773(a)(1)(B) of the Act, to the extent
practicable, we determined NV based on sales in the comparison market
at the same LOT as the EP. The NV LOT is based on the starting price of
the sales in the comparison market or, when NV is based on CV, the
starting price of the sales from which we derive SG&A expenses and
profit. For EP sales, the U.S. LOT is based on the starting price of
the sales to the U.S. market.
To determine whether NV sales are at a different LOT than the EP
sales, 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 a LOT adjustment under section
773(a)(7)(A) of the Act. In determining whether separate LOTs exist, we
obtained information from Vita regarding the marketing stages for the
reported U.S. and comparison market sales, including a description of
the selling activities performed by Vita for each channel of
distribution. Generally, if the reported LOTs are the same, the
functions and activities of the seller at each level should be similar.
Conversely, if a party reports that LOTs are different for different
groups of sales, the selling functions and activities of the seller for
each group should be dissimilar.
Vita reported that it sold the merchandise under review to two
types of customers, sales agents and end users, in the United States
and the Netherlands through one channel of distribution in each market.
See Vita's September 22, 2005, and November 25, 2005, questionnaire
responses at 18-24 and 11-13, respectively. In each channel of
distribution, Vita engaged in the following selling activities for both
types of customers: order processing, packing, freight and delivery,
and paying sales commissions. Because the one sales channel in the
United States involves the same functions for all sales, and the one
sales channel in the Netherlands also involves the same functions for
all sales, we have preliminarily determined that there is one LOT in
the United States and one LOT in the Netherlands. Moreover, because
Vita performed nearly identical selling functions for U.S. and Dutch
sales (the only difference being that, at times, Vita arranged the
international shipping for Dutch sales, whereas it did not provide this
service for U.S. sales), we have preliminarily determined that, during
the POR, Vita sold the foreign like product and subject merchandise at
the same LOT. Therefore, we have determined that a LOT adjustment is
not warranted.
Currency Conversion
Pursuant to section 773A(a) of the Act, we converted amounts
expressed in foreign currencies into U.S. dollar amounts based on the
exchange rates in effect on the dates of the U.S. sales, as certified
by the Federal Reserve Bank.
Preliminary Results of Review
As a result of this review, we preliminarily determined that the
following weighted-average dumping margins exist for the period July 1,
2004, through June 30, 2005:
------------------------------------------------------------------------
Manufacturer/Exporter Margin (percent)
------------------------------------------------------------------------
Vita Food Factory (1989) Ltd........................ 16.14
Tropical Food Industries Co., Ltd................... 51.16
------------------------------------------------------------------------
Public Comment
Within 10 days of publicly announcing the preliminary results of
this review, we will disclose to interested parties, any calculations
performed in connection with the preliminary results. See 19 CFR Sec.
351.224(b). Any interested party may request a hearing within 30 days
of the publication of this notice in the Federal Register. See 19 CFR
Sec. 351.310(c). If requested, a hearing will be held 44 days after
the date of publication of this notice in the Federal Register, or the
first workday thereafter. Interested parties are invited to comment on
the preliminary results of this review. The Department will consider
case briefs filed by interested parties within 30 days after the date
of publication of this notice in the Federal Register. Also, interested
parties may file rebuttal briefs, limited to issues raised in the case
briefs. The Department will consider rebuttal briefs filed not later
than five days after the time limit for filing case briefs. Parties who
submit arguments are requested to submit with each argument: (1) A
statement of the issue, (2) a brief summary of the argument and (3) a
table of authorities.
[[Page 44260]]
Further, we request that parties submitting written comments provide
the Department with a diskette containing an electronic copy of the
public version of such comments. Unless the deadline for issuing the
final results of review is extended, the Department will issue the
final results of this administrative review, including the results of
its analysis of issues raised in the written comments, within 120 days
of publication of the preliminary results in the Federal Register.
Assessment Rates
In accordance with 19 CFR Sec. 351.212(b)(1), in these preliminary
results of review, we calculated importer/customer-specific assessment
rates for Vita's subject merchandise. Since Vita did not report the
entered value for its sales, we calculated per-unit assessment rates
for its merchandise by summing, on an importer or customer-specific
basis, the dumping margins calculated for all U.S. sales to the
importer or customer, and dividing this amount by the total quantity of
those sales. If the importer/customer-specific assessment rate is above
de minimis (i.e., 0.50 percent ad valorem or greater), we will instruct
CBP to assess the importer/customer-specific rate uniformly, as
appropriate, on all entries of subject merchandise during the POR that
were entered by the importer or sold to the customer. To determine
whether the per-unit duty assessment rates were de minimis (i.e., less
than 0.50 percent ad valorem), in accordance with the requirement set
forth in 19 CFR Sec. 351.106(c)(2), we calculated importer/customer-
specific ad valorem ratios based on the estimated entered value. For
TROFCO, the respondent receiving a dumping margin based upon AFA, we
will instruct CBP to liquidate entries according to the AFA ad valorem
rate. Within 15 days of publication of the final results of review, the
Department will issue instructions to CBP directing it to assess the
final importer/customer-specific assessment rates (if above de minimis)
uniformly on all entries of subject merchandise made by the relevant
importer during the POR. The Department clarified its ``automatic
assessment'' regulation on May 6, 2003 (68 FR 23954). This
clarification applies to POR entries of subject merchandise produced by
companies examined in this review (i.e., companies for which a dumping
margin was calculated) where the companies did not know that their
merchandise was destined for the United States. In such instances, we
will instruct CBP to liquidate unreviewed entries at the all-others
rate if there is no rate for the intermediate company(ies) involved in
the transaction. For a full discussion of this clarification, see
Antidumping and Countervailing Duty Proceedings: Assessment of
Antidumping Duties, 68 FR 23954 (May 6, 2003).
Cash Deposit Requirements
The following cash deposit requirements will be effective for all
shipments of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the publication date of the
final results of this administrative review, as provided by section
751(a)(1) of the Act: (1) The cash deposit rate for the reviewed
companies will be the rate established in the final results of this
review (except that if the rate for a particular company is de minimis,
i.e., less than 0.5 percent, no cash deposit will be required for that
company); (2) for previously investigated or reviewed companies not
listed above, the cash deposit rate will continue to be the company-
specific rate published for the most recent period; (3) if the exporter
is not a firm covered in this review, a prior review, or the less-than-
fair-value (LTFV) investigation, but the manufacturer is, the cash
deposit rate will be the rate established for the most recent period
for the manufacturer of the subject merchandise; and (4) the cash
deposit rate for all other manufacturers or exporters will continue to
be the ``all others'' rate of 24.64 percent, which is the ``all
others'' rate established in the LTFV investigation. These cash deposit
rates, when imposed, shall remain in effect until publication of the
final results of the next administrative review.
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping and 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 Act.
Dated: July 31, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E6-12654 Filed 8-3-06; 8:45 am]
BILLING CODE 3510-DS-S