Honey From Argentina: Preliminary Results of New Shipper Review, 67850-67854 [E6-19899]
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67850
Federal Register / Vol. 71, No. 226 / Friday, November 24, 2006 / Notices
day when the Department is closed. See
Notice of Clarification: Application of
‘‘Next Business Day’’ Rule for
Administrative Determination Deadlines
Pursuant to the Tariff Act of 1930, As
Amended, 70 FR 24533 (May 10, 2005).
Accordingly, the deadline for
completion of the final results is no later
than March 12, 2007.
This notice is published in
accordance with section 751(a)(3)(A) of
the Act and section 351.213(h)(2) of the
Department’s regulations.
Dated: November 14, 2006.
Stephen J. Claeys,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. E6–19902 Filed 11–22–06; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–357–812]
Honey From Argentina: Preliminary
Results of New Shipper Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request by the
respondent Patagonik S.A. (Patagonik),
the Department of Commerce (the
Department) is conducting a new
shipper review of the antidumping
order of honey from Argentina. The
period of review (POR) is December 1,
2004, through December 31, 2005.
We preliminarily determine a zero
margin in the case of sales of honey
from Argentina from Patagonik. If these
preliminary results are adopted in our
final results of this new shipper review,
we will instruct Customs and Border
Protection (CBP) to assess antidumping
duties based on the difference between
the export price (EP) or constructed
export price (CEP) and normal value
(NV). Interested parties are invited to
comment on these preliminary results.
EFFECTIVE DATE: November 24, 2006.
FOR FURTHER INFORMATION CONTACT:
David Cordell or Robert James, AD/CVD
Operations, Office 7, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–0649 or (202) 482–
0408, respectively.
SUPPLEMENTARY INFORMATION:
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AGENCY:
Background
The Department published an
antidumping duty order on honey from
Argentina on December 10, 2001. See
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Notice of Antidumping Duty Order;
Honey From Argentina, 66 FR 63672.
On January 3, 2006, Patagonik, an
Argentine exporter of subject
merchandise, requested that the
Department conduct a new shipper
review. On January 20, 2006, the
Department initiated this new shipper
review. See Honey from Argentina:
Initiation of New Shipper Antidumping
Duty Review, 71 FR 4349 (January 26,
2006).
On January 30, 2006, the Department
issued sections A, B, and C of the
antidumping questionnaire to
Patagonik, as well as a supplemental
questionnaire to its unaffiliated
customer in the United States. We
received responses on February 16,
2006, March 2, 2006, and March 20,
2006.
The Department issued additional
supplemental questionnaires on April
13, May 22, and July 31, 2006. We
received responses to these additional
supplemental questionnaires on May 8,
June 9, and August 28, 2006. The
American Honey Producers Association
and the Sioux Honey Association
(petitioners) submitted comments on
respondent’s submissions on May 3,
May 26, and July 14, 2006.
On May 5, 2006, petitioners made a
sales below cost allegation in this
segment of the proceeding. Respondent
and petitioners submitted comments on
the allegation on May 16, and May 26,
2006, respectively. On June 27, 2006,
the Department initiated a sales below
cost investigation based upon
petitioner’s allegation and on July 18,
2006, the Department issued its section
D questionnaire to the selected
beekeepers and middleman, Colmenares
Santa Rosa. On August 15, 2006, the
beekeepers and the middleman
submitted their response to the cost
questionnaire. On September 7, 2006,
the Department issued a supplemental
cost questionnaire to which Patagonik’s
beekeepers and middleman replied on
October 6, 2006.
On June 30, 2006, the Department
extended the time limit for issuance of
the preliminary results of the new
shipper review to November 16, 2006.
See Notice of Extension of Time Limit
for Preliminary Results of Antidumping
New Shipper Review: Honey from
Argentina, 71 FR 39304 (July 12, 2006).
Scope of the Review
The merchandise covered by this
order is honey from Argentina. The
products covered are natural honey,
artificial honey containing more than 50
percent natural honey by weight,
preparations of natural honey
containing more than 50 percent natural
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honey by weight, and flavored honey.
The subject merchandise includes all
grades and colors of honey whether in
liquid, creamed, comb, cut comb, or
chunk form, and whether packaged for
retail or in bulk form.
The merchandise covered by this
order is currently classifiable under
subheadings 0409.00.00, 1702.90.90,
and 2106.90.99 of the Harmonized
Tariff Schedule of the United States
(HTSUS). Although the HTSUS
subheadings are provided for
convenience and customs purposes, the
Department’s written description of the
merchandise under this order is
dispositive.
Bona Fide Sale Analysis
For the reasons stated below, we
preliminarily find that Patagonik’s
reported U.S. sales during the POR
appear to be bona fide based on the
totality of the facts on the record.
Specifically, we find that: (1) The price
of Patagonik’s sale was within the range
of the prices of other entries of subject
merchandise from Argentina into the
United States during the POR; (2)
Patagonik’s sale was made between
Patagonik and unaffiliated parties at
arm’s length; and (3) there is no record
evidence that indicates that Patagonik’s
sale was not made based on commercial
principles. See the accompanying memo
from David Cordell through Robert
James, Program Manager, to Richard
Weible, Office Director, entitled Bona
Fide Nature of the Sale in the New
Shipper Review of Patagonik S.A.:
Honey from Argentina, dated November
16, 2006.
Verification
As provided in section 782(i) of the
Tariff Act of 1930, as amended (the Act),
we verified sales and cost information
provided by Patagonik, selected
beekeepers, and the middleman/
collector, using standard verification
procedures such as the examination of
relevant sales and financial records. The
sales verification took place between
September 11, 2006, and September 14,
2006. Sales verification results are
outlined in the public and proprietary
versions of our verification reports,
which are on file in the Central Records
Unit (CRU) in room B–099 of the main
Department building. See Memoranda to
the File from David Cordell, Deborah
Scott and Maryanne Burke through
Richard Weible Office Director, entitled
‘‘Verification of the Sales Response of
Patagonik S.A.’’, dated October 30,
2006. We conducted a cost verification
with respect to the collector and two
selected beekeeper cost respondents
from October 23, 2006, to October 27,
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2006. See Memoranda to the File from
Angela Strom and Heidi Schriefer to
Neal Halper ‘‘Verification of the Cost
Responses of Colmenares Santa Rosa
S.R.L.’’; ‘‘Verification of the Cost
Response of Beekeeper 2’’; and,
‘‘Verification of the Cost Response of
Beekeeper 4’’, which will be released
shortly.
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Product Comparison
In accordance with section 771(16) of
the Act, we considered all sales of
honey covered by the description in the
‘‘Scope of the Review’’ section of this
notice, supra, which were sold in the
respective third-country market during
the POR to be the foreign like product
for the purpose of determining
appropriate product comparisons to
honey sold in the United States. We
matched products based on the physical
characteristics reported by Patagonik in
accordance with the Department’s
model match criteria. Where there were
no sales of identical merchandise in the
third-country market to compare to U.S.
sales, we compared U.S. sales to the
next most similar foreign like product
on the basis of the characteristics and
reporting instructions listed in the
antidumping duty questionnaire and
instructions, or to constructed value
(CV), as appropriate.
Level of Trade
In accordance with section
773(a)(1)(B)(i) of the Act, to the extent
practicable, we determine NV based on
sales in the third country market at the
same level of trade (LOT) as EP or CEP.
The NV LOT is that of the starting-price
sales in the third country market or,
when NV is based on CV, that of the
sales from which we derive selling,
general and administrative (SG&A)
expenses and profit. For CEP, it is the
level of the constructed sale from the
exporter to an affiliated importer after
the deductions required under section
772(d) of the Act.
To determine whether NV sales are at
a different LOT than CEP, we examine
stages in the marketing process and
selling functions along the chain of
distribution between the producer and
the unaffiliated customer. If the
comparison-market sales are at a
different LOT and the difference affects
price comparability, as manifested in a
pattern of consistent price differences
between the sales on which NV is based
and comparison-market sales at the LOT
of the export transaction, we make an
LOT adjustment under section
773(a)(7)(A) of the Act. Finally, for CEP
sales, if the NV level is more remote
from the factory than the CEP level and
there is no basis for determining
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whether the difference in the levels
between NV and CEP affects price
comparability, we adjust NV under
section 773(a)(7)(B) of the Act (the CEPoffset provision). See Final
Determination of Sales at Less Than
Fair Value: Certain Cut-to-Length
Carbon Steel Plate from South Africa,
62 FR 61731, 61732–33 (November 19,
1997).
Patagonik reported a single LOT for
all U.S. and third-country sales.
Patagonik claimed that its selling
activities in both markets are identical,
and nothing on the record appears to
suggest otherwise. For Patagonik, we
determine that all reported sales are
made at the same LOT, and we have no
need to make an LOT adjustment. See
Analysis Memoranda for Patagonik,
dated November 16, 2006.
Comparisons
To determine whether sales of subject
merchandise made by Patagonik to the
United States were made at less than
fair value, we compared the EP or CEP
to the NV, as described below. Pursuant
to section 777A(d)(2) of the Act, we
compared the EP or CEP of individual
U.S. transactions to the monthly weightaveraged NV of the foreign like product
where there were sales at prices above
the COP, as discussed in the ‘‘Cost of
Production Analysis’’ section below.
Date of Sale
Section 351.401(i) of the Department’s
regulations states that the Department
normally will use date of invoice, as
recorded in the exporter’s or producer’s
records kept in the ordinary course of
business, as the date of sale, but may
use a date other than the date of invoice
if it better reflects the date on which
material terms of sale are established.
Patagonik reported invoice date as the
date of sale for both markets. For
Patagonik, the Department, consistent
with prior practice, used the reported
shipment date as the date of sale for
both its third-country and U.S. markets
when shipment occurred prior to
invoice date. See Notice of Final
Determinations of Sales at Less than
Fair Value: Certain Durum Wheat and
Hard Red Spring Wheat from Canada,
68 FR 52741 (September 5, 2003), and
accompanying Decision Memo at
Comment 3.1
1 See page 16 of the Decision Memorandum,
which is available on the Web at https://
ia.ita.doc.gov/frn/summary/canada/03–22661–
1.pdf or in the Import Administration’s CRU located
at Room B–099, U.S. Department of Commerce,
14th Street and Constitution Avenue, NW.,
Washington, DC 20230.
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Export Price and Constructed Export
Price
Section 772(a) of the Act defines EP
as ‘‘the price at which the subject
merchandise is first sold (or agreed to be
sold) before the date of importation by
the producer or exporter of subject
merchandise outside of the United
States to an unaffiliated purchaser in the
United States or to an unaffiliated
purchaser for exportation to the United
States * * *,’’ as adjusted under
subsection (c). Section 772(b) of the Act
defines CEP as ‘‘the price at which the
subject merchandise is first sold (or
agreed to be sold) in the United States
before or after the date of importation by
or for the account of the producer or
exporter of such merchandise or by a
seller affiliated with the producer or
exporter, to a purchaser not affiliated
with the producer or exporter * * *,’’
as adjusted under subsections (c) and
(d). For purposes of this new shipper
review, Patagonik classified its U.S. sale
as EP because it was made before the
date of importation directly to an
unaffiliated purchaser in the U.S.
market. For purposes of these
preliminary results, we have accepted
this classification.
For those sales which we are
classifying as EP transactions, we
calculated EP in accordance with
section 772(a) of the Act. We based EP
on the FOB price for export to the
unaffiliated importer in the U.S. market.
We adjusted gross unit price for billing
adjustments where applicable. We also
made deductions for movement
expenses in accordance with section
772(c)(2)(A) of the Act; these included,
where appropriate, foreign inland
freight, warehousing, insurance,
consolidation, port charges and foreign
brokerage and handling.
Affiliation
On November 16, 2006, the
Department determined that Colmenares
Santa Rosa (CSR) and Patagonik are
affiliated within the meaning of section
771(33) of the Act, and also that the two
companies should be treated as a single
entity for the purposes of this new
shipper review and that the companies
should receive a single antidumping
duty rate. See memo from David Cordell
through Robert James, Program
Manager, to Richard Weible, Office
Director, entitled Relationship between
Patagonik S.A. and Colmenares Santa
Rosa S.R.L. in the 2004–2005 New
Shipper Review of Antidumping Order
on Honey from Argentina from David
Cordell through Robert James to Richard
Weible, (Collapsing and Affiliation
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CV Comparisons’’ and ‘‘Price-to-Price
Comparisons’’ sections of this notice.
Normal Value
2. Cost of Production
1. Selection of Comparison Market
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Memorandum), dated November 16,
2006.
Background
In accordance with section
773(a)(1)(C) of the Act, to determine
whether there was a sufficient volume
of sales in the home market to serve as
a viable basis for calculating NV (i.e.,
the aggregate volume of home market
sales of the foreign like product is
greater than or equal to five percent of
the aggregate volume of U.S. sales), we
compare each company’s aggregate
volume of home market sales of the
foreign like product to its aggregate
volume of U.S. sales of subject
merchandise. For Patagonik, the
aggregate volume of sales in the home
market of the foreign like product was
less than five percent of the aggregate
volume of U.S. sales of the subject
merchandise. Therefore, we determined
for Patagonik that sales in the home
market did not provide a viable basis for
calculating NV.
When sales in the home market are
not suitable to serve as the basis for NV,
section 773(a)(1)(B)(ii) of the Act
provides that sales to a third-country
market may be utilized if (i) The prices
in such market are representative; (ii)
the aggregate quantity of the foreign like
product sold by the producer or
exporter in the third-country market is
five percent or more of the aggregate
quantity of the subject merchandise sold
in or to the United States; and (iii) the
Department does not determine that a
particular market situation in the thirdcountry market prevents a proper
comparison with the U.S. price.
Patagonik reported Germany as its
largest third-country market during the
POR, in terms of volume of sales by
quantity (and with five percent or more
of sales, by quantity, to the United
States). The Department preliminarily
determines that the prices in Germany
are representative and no particular
market situation exists that would
prevent a proper comparison to EP or
CEP. As a result, for Patagonik, NV is
based on sales to Germany.
In summary, therefore, NV for
Patagonik is based on third-country
market sales to unaffiliated purchasers
made in commercial quantities and in
the ordinary course of trade. For NV, we
used the prices at which the foreign like
product was first sold for consumption
in the usual commercial quantities, in
the ordinary course of trade, and, to the
extent possible, at the same LOT as the
EP or CEP, as appropriate. We
calculated NV as noted in the ‘‘Price-to-
As noted above, on May 5, 2006,
petitioners made a sales below cost
allegation in this segment of the
proceeding. Respondent and petitioners
submitted comments on the allegation
on May 16, and May 26, 2006,
respectively. On June 20, 2006, the
Department initiated a sales below cost
investigation.
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A. Cost of Production Analysis
As previously stated, Patagonik is an
exporter, not a producer, of subject
merchandise in this review. On
February 16, 2006, Patagonik submitted
a list of its unaffiliated honey suppliers,
which identified companies,
individuals, and cooperatives operating
as either producers (beekeepers) or
intermediary parties (collectors) in
Patagonik’s honey purchases. The list
was updated in exhibit A–16 in
Patagonik’s May 8, 2006 and August 4,
2006 responses. To calculate a COP and
CV for the merchandise under
consideration, the Department followed
the same methodology relied upon in
the first administrative review. The
Department selected its five largest
beekeepers and honey collector from
Patagonik’s list of suppliers. See
Memorandum to the File: ‘‘Selection of
Cost of Production Respondents,’’ dated
June 27, 2006.
B. Calculation of COP
In accordance with section 773(b)(3)
of the Act, we calculated a COP for each
beekeeper supplier based on the sum of
the cost of materials and fabrication for
the foreign like product, plus amounts
for general and administrative (G&A)
and financial expenses. Since all the
beekeepers utilized the intermediary
party, Colmenares Santa Rosa, S.R.L.
(CSR), to supply honey to Patagonik for
its export sales, we used the collecting
costs associated with CSR (i.e., the
selected honey collector) and added
such costs to the individual COP
reported by each beekeeper supplier.
We then calculated a simple average of
the COP figures, inclusive of collecting
costs, to obtain a final COP figure for
Patagonik. We note that our final COP
represents the costs incurred over the
cost reporting period (CRP) covering
June 1, 2004 to May 31, 2005, which
differs from the established POR in this
new shipper review. The CRP was
established to capture the cost of
producing honey for a complete
production season.
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Collector Cost Adjustments
For purposes of allocating the
collecting costs incurred by CSR, we
used the actual honey received less
returns at the CSR warehouse during the
CRP as opposed to reported estimated
purchased volumes. We also included
the cost of blending as a component of
the collector’s costs, captured the full
labor costs associated with the manager
of CSR and excluded income taxes from
the total reported collector costs. See
Memorandum from Angela Strom to
Neal M. Halper ‘‘Cost of Production and
Constructed Value Adjustments for the
Preliminary Results-Collector’’, dated
November 16, 2006.
Beekeeper Cost Respondent
Adjustments
We relied on the COP data submitted
by each beekeeper in its cost
questionnaire response, except for the
following adjustments.
Common Adjustments
Due to the limited source documents
maintained by the individual beekeeper
cost respondents, we were unable to
confirm management’s estimates related
to the reported amounts for the
consumption of surplus honey or sugar
as feed for the hives. Because the
reported feed amounts were based on
management’s estimates, we compared
the reported feed costs to publicly
available data. As a result, we adjusted
the reported feed costs for Beekeepers 1,
2, 3, 4, and 5 to reflect the data available
from public sources.
Individual Beekeeper Adjustments
Beekeeper 1
We made no beekeeper specific
adjustments.
Beekeeper 2
1. We adjusted the reported rental
cost for land to reflect the market value
of the actual quantity of honey that was
bartered for the land use.
2. We increased the reported costs for
both the depreciation expense of
additional fixed assets and other
additional expenses identified at the
cost verification.
3. We adjusted the reported drum cost
calculation by revising the reported
market value of a drum to reflect the per
unit purchase price actually paid by
Beekeeper 2 during the cost reporting
period.
Beekeeper 3
We made no beekeeper specific
adjustments.
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Beekeeper 4
1. We adjusted the reported
production quantities based on our cost
verification findings.
2. During the cost reporting period,
Beekeeper 4 hired a contractor to
operate his hives and the fee was a set
percentage of the honey production.
Therefore, we adjusted the reported
contractor fee calculation to reflect the
contractor’s percentage of the revised
honey production quantities at market
value.
3. We adjusted the reported drum cost
calculation to reflect the revised
production quantities.
Beekeeper 5
1. We adjusted the reported costs to
include an unreconciled difference
between the reported costs and the
beekeeper’s books and records from the
overall cost reconciliation.
2. We adjusted the reported costs to
include directors’ fees reported in the
beekeeper’s fiscal year financial
statements.
See Memorandum from Heidi K.
Schriefer to Neal M. Halper ‘‘Cost of
Production and Constructed Value
Adjustments for the Preliminary
Results—Patagonik S.A. Beekeeper
Respondents’’ dated November 16,
2006.
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C. Test of Third-Country Prices and
Results of the Cost of Production Test
In determining whether to disregard
third country market sales made at
prices below the COP, in accordance
with sections 773(b)(1)(A) and (B) of the
Act, we examined: (1) Whether, within
an extended period of time, such sales
were made in substantial quantities; and
(2) whether such sales were made at
prices which permitted the recovery of
all costs within a reasonable period of
time in the normal course of trade.
Where less than 20 percent of the
respondent’s third country market sales
of a given model (i.e., CONNUM) were
at prices below the COP, we did not
disregard any below-cost sales of that
model because we determined that the
below-cost sales were not made within
an extended period of time and in
‘‘substantial quantities.’’ Where 20
percent or more of the respondent’s
third country market sales of a given
model were at prices less than COP, we
disregarded the below-cost sales
because: (1) They were made within an
extended period of time in ‘‘substantial
quantities,’’ in accordance with sections
773(b)(2)(B) and (C) of the Act, and (2)
based on our comparison of prices to the
weighted-average COPs for the POR,
they were at prices which would not
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permit the recovery of all costs within
a reasonable period of time, in
accordance with section 773(b)(2)(D) of
the Act. Therefore, for purposes of this
new shipper review, we disregarded
below-cost sales made by Patagonik
where 20 percent or more of the
respondent’s third country market sales
of a given model were at prices less than
COP, and used the remaining sales as
the basis for determining NV, in
accordance with section 773(b)(1) of the
Act.
Our cost test for Patagonik revealed
that for third country market sales of
certain models, less than 20 percent of
the sales of those models were at prices
below the COP. We therefore retained
all such sales in our analysis and used
them as the basis for determining NV.
Our cost test also indicated that for
other models sold by Patagonik, more
than 20 percent of the third country
market sales of those models were sold
at prices below COP within an extended
period of time and were at prices which
would not permit the recovery of all
costs within a reasonable period of time.
Thus, in accordance with section
773(b)(1) of the Act, we excluded these
below-cost sales from our analysis and
used the remaining above-cost sales as
the basis for determining NV.
Price-to-Price Comparisons
For those product comparisons for
which there were sales at prices above
the COP, we based NV on the thirdcountry market prices to unaffiliated
purchasers. In accordance with section
773(a)(6)(B) of the Act, we made
adjustments, where applicable, for
movement expenses. In accordance with
section 773(a)(6)(C) of the Act, we made
circumstance-of-sale adjustments for
credit and other direct selling expenses
where appropriate. We adjusted gross
unit price for billing adjustments where
applicable. We note that certain claimed
direct expenses in the third-country
market are being re-classified as either
indirect selling expenses or as part of
the cost of production, for the reasons
outlined in the accompanying Analysis
Memoranda. See Patagonik’s Sales
Analysis Memorandum, dated
November 16, 2006, and Patagonik’s
COP Memorandum, dated November 16,
2006.
Currency Conversion
The Department’s preferred source for
daily exchange rates is the Federal
Reserve Bank. See Preliminary Results
of Antidumping Duty Administrative
Review: Stainless Steel Sheet and Strip
in Coils from France, 68 FR 47049
(August 7, 2003). However, the Federal
Reserve Bank does not track or publish
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67853
exchange rates for the Argentine Peso.
Therefore, we made currency
conversions based on the daily
exchange rates from Factiva, a Dow
Jones & Reuters Retrieval Service.
Factiva publishes exchange rates for
Monday through Friday only. We used
the rate of exchange on the most recent
Friday for conversion dates involving
Saturday and Sunday where necessary.
Preliminary Results of Review
As a result of our review, we
preliminarily determine the following
weighted-average dumping margins
exist for the period December 1, 2004,
through December 30, 2005:
Exporter
Patagonik S.A./
Colmenares Santa
Rosa S.R.L ................
Weighted-average
margin
(percentage)
0.00
The Department will disclose
calculations performed within 5 days of
the date of publication of this notice in
accordance with 19 CFR 351.224(b). An
interested party may request a hearing
within 30 days of publication. See 19
CFR 351.310(c). Any hearing, if
requested, will be held 37 days after the
date of publication of these preliminary
results, or the first business day
thereafter, unless the Department alters
the date pursuant to 19 CFR 351.310(d).
Interested parties may submit case briefs
or written comments no later than 30
days after the date of publication of
these preliminary results of review.
Rebuttal briefs and rebuttals to written
comments, limited to issues raised in
the case briefs and comments, may be
filed no later than 35 days after the date
of publication of this notice. Parties who
submit arguments in these proceedings
are requested to submit with the
argument: 1) A statement of the issue, 2)
a brief summary of the argument, and 3)
a table of authorities. Further, parties
submitting case briefs, rebuttal briefs,
and written comments should provide
the Department with an additional copy
of the public version of any such
argument on diskette. The Department
will issue final results of this new
shipper review, including the results of
our analysis of the issues in any such
case briefs, rebuttal briefs, and written
comments or at a hearing, within 120
days of publication of these preliminary
results.
Assessment Rate
The Department shall determine, and
CBP shall assess, antidumping duties on
all appropriate entries. In accordance
with 19 CFR 351.212(b)(1), we
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calculated importer-specific ad valorem
assessment rates for the merchandise
based on the ratio of the total amount of
antidumping duties calculated for the
examined sales made during the POR to
the total customs value of the sales used
to calculate those duties. This rate will
be assessed uniformly on all Patagonik/
Colmenares entries of that particular
importer made during the POR. The
Department intends to issue assessment
instructions to CBP 15 days after the
date of publication of the final results of
review.
Cash Deposit
At the initiation of this review, the
Department issued cash deposit
instructions based on the certifications
that Patagonik was the exporter and that
CSR was the supplier of subject
merchandise. The Department has since
determined that Patagonik and CSR are
affiliated and, furthermore, that the
Department should treat Patagonik and
CSR as a single entity for purposes of
this new shipper review. final, the
combination from the cash deposit
instructions issued at initiation will no
longer apply. The See Collapsing and
Affiliation Memorandum. As such, if
this preliminary determination becomes
Department would typically apply the
combination cash deposit rate to the
Patagonik/CSR entity and the producers
who supplied Patagonik/CSR during the
POR. However, in this particular
instance, the number of producers in the
form of unaffiliated beekeepers which
supplied CSR/Patagonik during the POR
is voluminous. The Preamble to the
Department’s regulations states ‘‘it may
not be practicable to establish
combination rates when there are a large
number of producers, such as in certain
agricultural cases.’’ Antidumping
Duties; Countervailing Duties: Final
Rule, 62 FR 27296, 27303 (May 19,
1997). The Department believes the
unique circumstances envisaged in the
Preamble are present in this particular
review. Therefore the Department
preliminarily determines that the
numerous producers in this case make
it impracticable to apply a combination
rate.
The following cash-deposit
requirements will be effective upon
publication of the final results of this
new shipper review for all shipments of
the subject merchandise from
Patagonik/CSR, entered or withdrawn
from warehouse, for consumption on or
after the publication date as provided
for by section 751(a)(2)(C) of the Act.
For shipments of subject merchandise
exported by Patagonik/CSR, the cash
deposit rate shall be the rate determined
in the final results of the review. These
VerDate Aug<31>2005
13:24 Nov 22, 2006
Jkt 211001
Background
BV on August 8, 2006. Corus Staal BV
claimed interested party status as a
foreign producer, under Section
771(9)(A) of the Tariff Act of 1930, as
amended (‘‘the Act’’), 19 U.S.C.
1677(9)(A), and 19 CFR 351.102(b). The
following domestic interested parties
each submitted a Notice of Intent to
Participate, all within the deadline
specified in section 351.218(d)(1)(i) of
the Department’s regulations,
identifying themselves as interested
parties under 771(9)(c) of the Act: Nucor
Corporation (August 10, 2006); Gallatin
Steel, IPSCO Steel, Inc., and Steel
Dynamics, Inc. (August 15, 2006); Mittal
Steel USA (August 16, 2006); United
Steel, Paper and Forestry, Rubber,
Manufacturing, Energy, Allied
Industrial and Service Workers
International Union, AFL–CIO–CLC
(August 16, 2006); and United States
Steel Corporation (August 16, 2006).
The Department received a complete
and timely joint substantive response
from certain domestic interested parties
(United States Steel Corporation, Mittal
Steel USA Inc., Nucor Corporation,
Gallatin Steel Company, Steel Dynamics
Inc., and IPSCO Steel Inc.) (‘‘Domestic
Producers’’) on August 31, 2006, within
the deadline specified under section
351.218(d)(3)(i) of the Department’s
regulations. The Department also
received a complete substantive
response from Corus Staal BV on August
31, 2006. On September 8, 2006, the
Department received rebuttal comments
from United States Steel Corporation
and from Corus Staal BV.
On September 20, 2006, the
Department determined that Domestic
Producers’ and Corus Staal BV’s August
31, 2006, submissions constituted
adequate responses to the notice of
initiation, in accordance with sections
351.218(e)(1)(i) and (ii) of the
Department’s regulations. See Sunset
Review of Certain Hot-Rolled Carbon
Steel Flat Products from the
Netherlands: Adequacy of Domestic and
Respondent Interested Party Responses
to the Notice of Initiation. As a result,
the Department determined, in
accordance with section 351.218(e)(2) of
its regulations, to conduct a full (240day) review.
On August 1, 2006, the Department of
Commerce (‘‘the Department’’)
published in the Federal Register the
notice of initiation of its sunset review
of the antidumping duty order on
certain hot-rolled carbon steel flat
products from the Netherlands. See
Initiation of Five-Year (‘‘Sunset’’)
Reviews, 71 FR 43443 (August 1, 2006).
The Department received a Notice of
Intent to Participate from Corus Staal
Extension of Time Limits for
Preliminary and Final Results of
Review
The Act provides for the completion
of a full sunset review within 240 days
of the publication of the initiation
notice. See section 751(c)(5)(A) of the
Act. In accordance with section
751(c)(5)(B) of the Act, the Department
may extend the period of time for
making its determination by not more
deposit requirements, when imposed,
shall remain in effect until publication
of the final results of the next
administrative review.
Notification to Importers
This notice also serves as a
preliminary reminder to importers of
their responsibility under 19 CFR
351.402(f) to file a certificate regarding
the reimbursement of antidumping
duties prior to liquidation of the
relevant entries during this review
period. Failure to comply with this
requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
We are issuing and publishing this
notice in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: November 16, 2006.
Stephen J. Claeys,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E6–19899 Filed 11–22–06; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–421–807]
Certain Hot-Rolled Carbon Steel Flat
Products from the Netherlands;
Extension of Time Limits for
Preliminary and Final Results of Full
Five-Year (‘‘Sunset’’) Review of
Antidumping Duty Order
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: November 24, 2006.
FOR FURTHER INFORMATION CONTACT:
Steve Bezirganian or Robert James, AD/
CVD Operations, Office 7, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street & Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–1131 or (202) 482–
0649, respectively.
AGENCY:
PO 00000
Frm 00009
Fmt 4703
Sfmt 4703
E:\FR\FM\24NON1.SGM
24NON1
Agencies
[Federal Register Volume 71, Number 226 (Friday, November 24, 2006)]
[Notices]
[Pages 67850-67854]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-19899]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-357-812]
Honey From Argentina: Preliminary Results of New Shipper Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request by the respondent Patagonik S.A.
(Patagonik), the Department of Commerce (the Department) is conducting
a new shipper review of the antidumping order of honey from Argentina.
The period of review (POR) is December 1, 2004, through December 31,
2005.
We preliminarily determine a zero margin in the case of sales of
honey from Argentina from Patagonik. If these preliminary results are
adopted in our final results of this new shipper review, we will
instruct Customs and Border Protection (CBP) to assess antidumping
duties based on the difference between the export price (EP) or
constructed export price (CEP) and normal value (NV). Interested
parties are invited to comment on these preliminary results.
EFFECTIVE DATE: November 24, 2006.
FOR FURTHER INFORMATION CONTACT: David Cordell or Robert James, AD/CVD
Operations, Office 7, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0649 or (202) 482-0408, respectively.
SUPPLEMENTARY INFORMATION:
Background
The Department published an antidumping duty order on honey from
Argentina on December 10, 2001. See Notice of Antidumping Duty Order;
Honey From Argentina, 66 FR 63672. On January 3, 2006, Patagonik, an
Argentine exporter of subject merchandise, requested that the
Department conduct a new shipper review. On January 20, 2006, the
Department initiated this new shipper review. See Honey from Argentina:
Initiation of New Shipper Antidumping Duty Review, 71 FR 4349 (January
26, 2006).
On January 30, 2006, the Department issued sections A, B, and C of
the antidumping questionnaire to Patagonik, as well as a supplemental
questionnaire to its unaffiliated customer in the United States. We
received responses on February 16, 2006, March 2, 2006, and March 20,
2006.
The Department issued additional supplemental questionnaires on
April 13, May 22, and July 31, 2006. We received responses to these
additional supplemental questionnaires on May 8, June 9, and August 28,
2006. The American Honey Producers Association and the Sioux Honey
Association (petitioners) submitted comments on respondent's
submissions on May 3, May 26, and July 14, 2006.
On May 5, 2006, petitioners made a sales below cost allegation in
this segment of the proceeding. Respondent and petitioners submitted
comments on the allegation on May 16, and May 26, 2006, respectively.
On June 27, 2006, the Department initiated a sales below cost
investigation based upon petitioner's allegation and on July 18, 2006,
the Department issued its section D questionnaire to the selected
beekeepers and middleman, Colmenares Santa Rosa. On August 15, 2006,
the beekeepers and the middleman submitted their response to the cost
questionnaire. On September 7, 2006, the Department issued a
supplemental cost questionnaire to which Patagonik's beekeepers and
middleman replied on October 6, 2006.
On June 30, 2006, the Department extended the time limit for
issuance of the preliminary results of the new shipper review to
November 16, 2006. See Notice of Extension of Time Limit for
Preliminary Results of Antidumping New Shipper Review: Honey from
Argentina, 71 FR 39304 (July 12, 2006).
Scope of the Review
The merchandise covered by this order is honey from Argentina. The
products covered are natural honey, artificial honey containing more
than 50 percent natural honey by weight, preparations of natural honey
containing more than 50 percent natural honey by weight, and flavored
honey. The subject merchandise includes all grades and colors of honey
whether in liquid, creamed, comb, cut comb, or chunk form, and whether
packaged for retail or in bulk form.
The merchandise covered by this order is currently classifiable
under subheadings 0409.00.00, 1702.90.90, and 2106.90.99 of the
Harmonized Tariff Schedule of the United States (HTSUS). Although the
HTSUS subheadings are provided for convenience and customs purposes,
the Department's written description of the merchandise under this
order is dispositive.
Bona Fide Sale Analysis
For the reasons stated below, we preliminarily find that
Patagonik's reported U.S. sales during the POR appear to be bona fide
based on the totality of the facts on the record. Specifically, we find
that: (1) The price of Patagonik's sale was within the range of the
prices of other entries of subject merchandise from Argentina into the
United States during the POR; (2) Patagonik's sale was made between
Patagonik and unaffiliated parties at arm's length; and (3) there is no
record evidence that indicates that Patagonik's sale was not made based
on commercial principles. See the accompanying memo from David Cordell
through Robert James, Program Manager, to Richard Weible, Office
Director, entitled Bona Fide Nature of the Sale in the New Shipper
Review of Patagonik S.A.: Honey from Argentina, dated November 16,
2006.
Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(the Act), we verified sales and cost information provided by
Patagonik, selected beekeepers, and the middleman/collector, using
standard verification procedures such as the examination of relevant
sales and financial records. The sales verification took place between
September 11, 2006, and September 14, 2006. Sales verification results
are outlined in the public and proprietary versions of our verification
reports, which are on file in the Central Records Unit (CRU) in room B-
099 of the main Department building. See Memoranda to the File from
David Cordell, Deborah Scott and Maryanne Burke through Richard Weible
Office Director, entitled ``Verification of the Sales Response of
Patagonik S.A.'', dated October 30, 2006. We conducted a cost
verification with respect to the collector and two selected beekeeper
cost respondents from October 23, 2006, to October 27,
[[Page 67851]]
2006. See Memoranda to the File from Angela Strom and Heidi Schriefer
to Neal Halper ``Verification of the Cost Responses of Colmenares Santa
Rosa S.R.L.''; ``Verification of the Cost Response of Beekeeper 2'';
and, ``Verification of the Cost Response of Beekeeper 4'', which will
be released shortly.
Product Comparison
In accordance with section 771(16) of the Act, we considered all
sales of honey covered by the description in the ``Scope of the
Review'' section of this notice, supra, which were sold in the
respective third-country market during the POR to be the foreign like
product for the purpose of determining appropriate product comparisons
to honey sold in the United States. We matched products based on the
physical characteristics reported by Patagonik in accordance with the
Department's model match criteria. Where there were no sales of
identical merchandise in the third-country market to compare to U.S.
sales, we compared U.S. sales to the next most similar foreign like
product on the basis of the characteristics and reporting instructions
listed in the antidumping duty questionnaire and instructions, or to
constructed value (CV), as appropriate.
Level of Trade
In accordance with section 773(a)(1)(B)(i) of the Act, to the
extent practicable, we determine NV based on sales in the third country
market at the same level of trade (LOT) as EP or CEP. The NV LOT is
that of the starting-price sales in the third country market or, when
NV is based on CV, that of the sales from which we derive selling,
general and administrative (SG&A) expenses and profit. For CEP, it is
the level of the constructed sale from the exporter to an affiliated
importer after the deductions required under section 772(d) of the Act.
To determine whether NV sales are at a different LOT than CEP, we
examine stages in the marketing process and selling functions along the
chain of distribution between the producer and the unaffiliated
customer. If the comparison-market sales are at a different LOT and the
difference affects price comparability, as manifested in a pattern of
consistent price differences between the sales on which NV is based and
comparison-market sales at the LOT of the export transaction, we make
an LOT adjustment under section 773(a)(7)(A) of the Act. Finally, for
CEP sales, if the NV level is more remote from the factory than the CEP
level and there is no basis for determining whether the difference in
the levels between NV and CEP affects price comparability, we adjust NV
under section 773(a)(7)(B) of the Act (the CEP-offset provision). See
Final Determination of Sales at Less Than Fair Value: Certain Cut-to-
Length Carbon Steel Plate from South Africa, 62 FR 61731, 61732-33
(November 19, 1997).
Patagonik reported a single LOT for all U.S. and third-country
sales. Patagonik claimed that its selling activities in both markets
are identical, and nothing on the record appears to suggest otherwise.
For Patagonik, we determine that all reported sales are made at the
same LOT, and we have no need to make an LOT adjustment. See Analysis
Memoranda for Patagonik, dated November 16, 2006.
Comparisons
To determine whether sales of subject merchandise made by Patagonik
to the United States were made at less than fair value, we compared the
EP or CEP to the NV, as described below. Pursuant to section 777A(d)(2)
of the Act, we compared the EP or CEP of individual U.S. transactions
to the monthly weight-averaged NV of the foreign like product where
there were sales at prices above the COP, as discussed in the ``Cost of
Production Analysis'' section below.
Date of Sale
Section 351.401(i) of the Department's regulations states that the
Department normally will use date of invoice, as recorded in the
exporter's or producer's records kept in the ordinary course of
business, as the date of sale, but may use a date other than the date
of invoice if it better reflects the date on which material terms of
sale are established. Patagonik reported invoice date as the date of
sale for both markets. For Patagonik, the Department, consistent with
prior practice, used the reported shipment date as the date of sale for
both its third-country and U.S. markets when shipment occurred prior to
invoice date. See Notice of Final Determinations of Sales at Less than
Fair Value: Certain Durum Wheat and Hard Red Spring Wheat from Canada,
68 FR 52741 (September 5, 2003), and accompanying Decision Memo at
Comment 3.\1\
---------------------------------------------------------------------------
\1\ See page 16 of the Decision Memorandum, which is available
on the Web at https://ia.ita.doc.gov/frn/summary/canada/03-22661-
1.pdf or in the Import Administration's CRU located at Room B-099,
U.S. Department of Commerce, 14th Street and Constitution Avenue,
NW., Washington, DC 20230.
---------------------------------------------------------------------------
Export Price and Constructed Export Price
Section 772(a) of the Act defines EP as ``the price at which the
subject merchandise is first sold (or agreed to be sold) before the
date of importation by the producer or exporter of subject merchandise
outside of the United States to an unaffiliated purchaser in the United
States or to an unaffiliated purchaser for exportation to the United
States * * *,'' as adjusted under subsection (c). Section 772(b) of the
Act defines CEP as ``the price at which the subject merchandise is
first sold (or agreed to be sold) in the United States before or after
the date of importation by or for the account of the producer or
exporter of such merchandise or by a seller affiliated with the
producer or exporter, to a purchaser not affiliated with the producer
or exporter * * *,'' as adjusted under subsections (c) and (d). For
purposes of this new shipper review, Patagonik classified its U.S. sale
as EP because it was made before the date of importation directly to an
unaffiliated purchaser in the U.S. market. For purposes of these
preliminary results, we have accepted this classification.
For those sales which we are classifying as EP transactions, we
calculated EP in accordance with section 772(a) of the Act. We based EP
on the FOB price for export to the unaffiliated importer in the U.S.
market. We adjusted gross unit price for billing adjustments where
applicable. We also made deductions for movement expenses in accordance
with section 772(c)(2)(A) of the Act; these included, where
appropriate, foreign inland freight, warehousing, insurance,
consolidation, port charges and foreign brokerage and handling.
Affiliation
On November 16, 2006, the Department determined that Colmenares
Santa Rosa (CSR) and Patagonik are affiliated within the meaning of
section 771(33) of the Act, and also that the two companies should be
treated as a single entity for the purposes of this new shipper review
and that the companies should receive a single antidumping duty rate.
See memo from David Cordell through Robert James, Program Manager, to
Richard Weible, Office Director, entitled Relationship between
Patagonik S.A. and Colmenares Santa Rosa S.R.L. in the 2004-2005 New
Shipper Review of Antidumping Order on Honey from Argentina from David
Cordell through Robert James to Richard Weible, (Collapsing and
Affiliation
[[Page 67852]]
Memorandum), dated November 16, 2006.
Normal Value
1. Selection of Comparison Market
In accordance with section 773(a)(1)(C) of the Act, to determine
whether there was a sufficient volume of sales in the home market to
serve as a viable basis for calculating NV (i.e., the aggregate volume
of home market sales of the foreign like product is greater than or
equal to five percent of the aggregate volume of U.S. sales), we
compare each company's aggregate volume of home market sales of the
foreign like product to its aggregate volume of U.S. sales of subject
merchandise. For Patagonik, the aggregate volume of sales in the home
market of the foreign like product was less than five percent of the
aggregate volume of U.S. sales of the subject merchandise. Therefore,
we determined for Patagonik that sales in the home market did not
provide a viable basis for calculating NV.
When sales in the home market are not suitable to serve as the
basis for NV, section 773(a)(1)(B)(ii) of the Act provides that sales
to a third-country market may be utilized if (i) The prices in such
market are representative; (ii) the aggregate quantity of the foreign
like product sold by the producer or exporter in the third-country
market is five percent or more of the aggregate quantity of the subject
merchandise sold in or to the United States; and (iii) the Department
does not determine that a particular market situation in the third-
country market prevents a proper comparison with the U.S. price.
Patagonik reported Germany as its largest third-country market during
the POR, in terms of volume of sales by quantity (and with five percent
or more of sales, by quantity, to the United States). The Department
preliminarily determines that the prices in Germany are representative
and no particular market situation exists that would prevent a proper
comparison to EP or CEP. As a result, for Patagonik, NV is based on
sales to Germany.
In summary, therefore, NV for Patagonik is based on third-country
market sales to unaffiliated purchasers made in commercial quantities
and in the ordinary course of trade. For NV, we used the prices at
which the foreign like product was first sold for consumption in the
usual commercial quantities, in the ordinary course of trade, and, to
the extent possible, at the same LOT as the EP or CEP, as appropriate.
We calculated NV as noted in the ``Price-to-CV Comparisons'' and
``Price-to-Price Comparisons'' sections of this notice.
2. Cost of Production
Background
As noted above, on May 5, 2006, petitioners made a sales below cost
allegation in this segment of the proceeding. Respondent and
petitioners submitted comments on the allegation on May 16, and May 26,
2006, respectively. On June 20, 2006, the Department initiated a sales
below cost investigation.
A. Cost of Production Analysis
As previously stated, Patagonik is an exporter, not a producer, of
subject merchandise in this review. On February 16, 2006, Patagonik
submitted a list of its unaffiliated honey suppliers, which identified
companies, individuals, and cooperatives operating as either producers
(beekeepers) or intermediary parties (collectors) in Patagonik's honey
purchases. The list was updated in exhibit A-16 in Patagonik's May 8,
2006 and August 4, 2006 responses. To calculate a COP and CV for the
merchandise under consideration, the Department followed the same
methodology relied upon in the first administrative review. The
Department selected its five largest beekeepers and honey collector
from Patagonik's list of suppliers. See Memorandum to the File:
``Selection of Cost of Production Respondents,'' dated June 27, 2006.
B. Calculation of COP
In accordance with section 773(b)(3) of the Act, we calculated a
COP for each beekeeper supplier based on the sum of the cost of
materials and fabrication for the foreign like product, plus amounts
for general and administrative (G&A) and financial expenses. Since all
the beekeepers utilized the intermediary party, Colmenares Santa Rosa,
S.R.L. (CSR), to supply honey to Patagonik for its export sales, we
used the collecting costs associated with CSR (i.e., the selected honey
collector) and added such costs to the individual COP reported by each
beekeeper supplier. We then calculated a simple average of the COP
figures, inclusive of collecting costs, to obtain a final COP figure
for Patagonik. We note that our final COP represents the costs incurred
over the cost reporting period (CRP) covering June 1, 2004 to May 31,
2005, which differs from the established POR in this new shipper
review. The CRP was established to capture the cost of producing honey
for a complete production season.
Collector Cost Adjustments
For purposes of allocating the collecting costs incurred by CSR, we
used the actual honey received less returns at the CSR warehouse during
the CRP as opposed to reported estimated purchased volumes. We also
included the cost of blending as a component of the collector's costs,
captured the full labor costs associated with the manager of CSR and
excluded income taxes from the total reported collector costs. See
Memorandum from Angela Strom to Neal M. Halper ``Cost of Production and
Constructed Value Adjustments for the Preliminary Results-Collector'',
dated November 16, 2006.
Beekeeper Cost Respondent Adjustments
We relied on the COP data submitted by each beekeeper in its cost
questionnaire response, except for the following adjustments.
Common Adjustments
Due to the limited source documents maintained by the individual
beekeeper cost respondents, we were unable to confirm management's
estimates related to the reported amounts for the consumption of
surplus honey or sugar as feed for the hives. Because the reported feed
amounts were based on management's estimates, we compared the reported
feed costs to publicly available data. As a result, we adjusted the
reported feed costs for Beekeepers 1, 2, 3, 4, and 5 to reflect the
data available from public sources.
Individual Beekeeper Adjustments
Beekeeper 1
We made no beekeeper specific adjustments.
Beekeeper 2
1. We adjusted the reported rental cost for land to reflect the
market value of the actual quantity of honey that was bartered for the
land use.
2. We increased the reported costs for both the depreciation
expense of additional fixed assets and other additional expenses
identified at the cost verification.
3. We adjusted the reported drum cost calculation by revising the
reported market value of a drum to reflect the per unit purchase price
actually paid by Beekeeper 2 during the cost reporting period.
Beekeeper 3
We made no beekeeper specific adjustments.
[[Page 67853]]
Beekeeper 4
1. We adjusted the reported production quantities based on our cost
verification findings.
2. During the cost reporting period, Beekeeper 4 hired a contractor
to operate his hives and the fee was a set percentage of the honey
production. Therefore, we adjusted the reported contractor fee
calculation to reflect the contractor's percentage of the revised honey
production quantities at market value.
3. We adjusted the reported drum cost calculation to reflect the
revised production quantities.
Beekeeper 5
1. We adjusted the reported costs to include an unreconciled
difference between the reported costs and the beekeeper's books and
records from the overall cost reconciliation.
2. We adjusted the reported costs to include directors' fees
reported in the beekeeper's fiscal year financial statements.
See Memorandum from Heidi K. Schriefer to Neal M. Halper ``Cost of
Production and Constructed Value Adjustments for the Preliminary
Results--Patagonik S.A. Beekeeper Respondents'' dated November 16,
2006.
C. Test of Third-Country Prices and Results of the Cost of Production
Test
In determining whether to disregard third country market sales made
at prices below the COP, in accordance with sections 773(b)(1)(A) and
(B) of the Act, we examined: (1) Whether, within an extended period of
time, such sales were made in substantial quantities; and (2) whether
such sales were made at prices which permitted the recovery of all
costs within a reasonable period of time in the normal course of trade.
Where less than 20 percent of the respondent's third country market
sales of a given model (i.e., CONNUM) were at prices below the COP, we
did not disregard any below-cost sales of that model because we
determined that the below-cost sales were not made within an extended
period of time and in ``substantial quantities.'' Where 20 percent or
more of the respondent's third country market sales of a given model
were at prices less than COP, we disregarded the below-cost sales
because: (1) They were made within an extended period of time in
``substantial quantities,'' in accordance with sections 773(b)(2)(B)
and (C) of the Act, and (2) based on our comparison of prices to the
weighted-average COPs for the POR, they were at prices which would not
permit the recovery of all costs within a reasonable period of time, in
accordance with section 773(b)(2)(D) of the Act. Therefore, for
purposes of this new shipper review, we disregarded below-cost sales
made by Patagonik where 20 percent or more of the respondent's third
country market sales of a given model were at prices less than COP, and
used the remaining sales as the basis for determining NV, in accordance
with section 773(b)(1) of the Act.
Our cost test for Patagonik revealed that for third country market
sales of certain models, less than 20 percent of the sales of those
models were at prices below the COP. We therefore retained all such
sales in our analysis and used them as the basis for determining NV.
Our cost test also indicated that for other models sold by Patagonik,
more than 20 percent of the third country market sales of those models
were sold at prices below COP within an extended period of time and
were at prices which would not permit the recovery of all costs within
a reasonable period of time. Thus, in accordance with section 773(b)(1)
of the Act, we excluded these below-cost sales from our analysis and
used the remaining above-cost sales as the basis for determining NV.
Price-to-Price Comparisons
For those product comparisons for which there were sales at prices
above the COP, we based NV on the third-country market prices to
unaffiliated purchasers. In accordance with section 773(a)(6)(B) of the
Act, we made adjustments, where applicable, for movement expenses. In
accordance with section 773(a)(6)(C) of the Act, we made circumstance-
of-sale adjustments for credit and other direct selling expenses where
appropriate. We adjusted gross unit price for billing adjustments where
applicable. We note that certain claimed direct expenses in the third-
country market are being re-classified as either indirect selling
expenses or as part of the cost of production, for the reasons outlined
in the accompanying Analysis Memoranda. See Patagonik's Sales Analysis
Memorandum, dated November 16, 2006, and Patagonik's COP Memorandum,
dated November 16, 2006.
Currency Conversion
The Department's preferred source for daily exchange rates is the
Federal Reserve Bank. See Preliminary Results of Antidumping Duty
Administrative Review: Stainless Steel Sheet and Strip in Coils from
France, 68 FR 47049 (August 7, 2003). However, the Federal Reserve Bank
does not track or publish exchange rates for the Argentine Peso.
Therefore, we made currency conversions based on the daily exchange
rates from Factiva, a Dow Jones & Reuters Retrieval Service. Factiva
publishes exchange rates for Monday through Friday only. We used the
rate of exchange on the most recent Friday for conversion dates
involving Saturday and Sunday where necessary.
Preliminary Results of Review
As a result of our review, we preliminarily determine the following
weighted-average dumping margins exist for the period December 1, 2004,
through December 30, 2005:
------------------------------------------------------------------------
Weighted-average
Exporter margin
(percentage)
------------------------------------------------------------------------
Patagonik S.A./Colmenares Santa Rosa S.R.L.......... 0.00
------------------------------------------------------------------------
The Department will disclose calculations performed within 5 days
of the date of publication of this notice in accordance with 19 CFR
351.224(b). An interested party may request a hearing within 30 days of
publication. See 19 CFR 351.310(c). Any hearing, if requested, will be
held 37 days after the date of publication of these preliminary
results, or the first business day thereafter, unless the Department
alters the date pursuant to 19 CFR 351.310(d). Interested parties may
submit case briefs or written comments no later than 30 days after the
date of publication of these preliminary results of review. Rebuttal
briefs and rebuttals to written comments, limited to issues raised in
the case briefs and comments, may be filed no later than 35 days after
the date of publication of this notice. Parties who submit arguments in
these proceedings are requested to submit with the argument: 1) A
statement of the issue, 2) a brief summary of the argument, and 3) a
table of authorities. Further, parties submitting case briefs, rebuttal
briefs, and written comments should provide the Department with an
additional copy of the public version of any such argument on diskette.
The Department will issue final results of this new shipper review,
including the results of our analysis of the issues in any such case
briefs, rebuttal briefs, and written comments or at a hearing, within
120 days of publication of these preliminary results.
Assessment Rate
The Department shall determine, and CBP shall assess, antidumping
duties on all appropriate entries. In accordance with 19 CFR
351.212(b)(1), we
[[Page 67854]]
calculated importer-specific ad valorem assessment rates for the
merchandise based on the ratio of the total amount of antidumping
duties calculated for the examined sales made during the POR to the
total customs value of the sales used to calculate those duties. This
rate will be assessed uniformly on all Patagonik/Colmenares entries of
that particular importer made during the POR. The Department intends to
issue assessment instructions to CBP 15 days after the date of
publication of the final results of review.
Cash Deposit
At the initiation of this review, the Department issued cash
deposit instructions based on the certifications that Patagonik was the
exporter and that CSR was the supplier of subject merchandise. The
Department has since determined that Patagonik and CSR are affiliated
and, furthermore, that the Department should treat Patagonik and CSR as
a single entity for purposes of this new shipper review. final, the
combination from the cash deposit instructions issued at initiation
will no longer apply. The See Collapsing and Affiliation Memorandum. As
such, if this preliminary determination becomes Department would
typically apply the combination cash deposit rate to the Patagonik/CSR
entity and the producers who supplied Patagonik/CSR during the POR.
However, in this particular instance, the number of producers in the
form of unaffiliated beekeepers which supplied CSR/Patagonik during the
POR is voluminous. The Preamble to the Department's regulations states
``it may not be practicable to establish combination rates when there
are a large number of producers, such as in certain agricultural
cases.'' Antidumping Duties; Countervailing Duties: Final Rule, 62 FR
27296, 27303 (May 19, 1997). The Department believes the unique
circumstances envisaged in the Preamble are present in this particular
review. Therefore the Department preliminarily determines that the
numerous producers in this case make it impracticable to apply a
combination rate.
The following cash-deposit requirements will be effective upon
publication of the final results of this new shipper review for all
shipments of the subject merchandise from Patagonik/CSR, entered or
withdrawn from warehouse, for consumption on or after the publication
date as provided for by section 751(a)(2)(C) of the Act. For shipments
of subject merchandise exported by Patagonik/CSR, the cash deposit rate
shall be the rate determined in the final results of the review. These
deposit requirements, when imposed, shall remain in effect until
publication of the final results of the next administrative review.
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
We are issuing and publishing this notice in accordance with
sections 751(a)(1) and 777(i)(1) of the Act.
Dated: November 16, 2006.
Stephen J. Claeys,
Acting Assistant Secretary for Import Administration.
[FR Doc. E6-19899 Filed 11-22-06; 8:45 am]
BILLING CODE 3510-DS-P