Honey from the People's Republic of China: Preliminary Results of Antidumping Duty New Shipper Review, 36422-36426 [E7-12891]
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Federal Register / Vol. 72, No. 127 / Tuesday, July 3, 2007 / Notices
Washington, D.C. 20230. The
Department also asks parties to serve a
copy of their requests to the Office of
Antidumping/Countervailing
Operations, Attention: Sheila Forbes, in
room 3065 of the main Commerce
Building. Further, in accordance with
section 351.303(f)(l)(i) of the
regulations, a copy of each request must
be served on every party on the
Department’s service list.
The Department will publish in the
Federal Register a notice of ‘‘Initiation
of Administrative Review of
Antidumping or Countervailing Duty
Order, Finding, or Suspended
Investigation’’ for requests received by
the last day of July 2007. If the
Department does not receive, by the last
day of July 2007, a request for review of
entries covered by an order, finding, or
suspended investigation listed in this
notice and for the period identified
above, the Department will instruct the
U.S. Customs and Border Protection to
assess antidumping or countervailing
duties on those entries at a rate equal to
the cash deposit of (or bond for)
estimated antidumping or
countervailing duties required on those
entries at the time of entry, or
withdrawal from warehouse, for
consumption and to continue to collect
the cash deposit previously ordered.
This notice is not required by statute
but is published as a service to the
international trading community.
Dated: June 26, 2007.
Susan H. Kuhbach,
Acting Deputy Assistant Secretary for Import
Administration.
[FR Doc. 07–3248 Filed 6–28–07; 3:40 pm]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–863]
Honey from the People’s Republic of
China: Preliminary Results of
Antidumping Duty New Shipper
Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(‘‘the Department’’) is currently
conducting the semi–annual 2005–2006
new shipper review of the antidumping
duty order on honey from the People’s
Republic of China (‘‘PRC’’). We
preliminarily determine to apply
adverse facts available (‘‘AFA’’) with
respect to Shanghai Bloom International
Trading Co., Ltd. (‘‘Shanghai Bloom’’),
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AGENCY:
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which failed to cooperate to the best of
its ability, provided unverifiable
information, and impeded the
proceeding. If these preliminary results
are adopted in our final results of this
review, we will instruct U.S. Customs
and Border Protection (‘‘CBP’’) to assess
antidumping duties on entries of subject
merchandise during the period of
review (‘‘POR’’) for which the importer–
specific assessment rates are above de
minimis.
Interested parties are invited to
comment on these preliminary results.
We will issue the final results no later
than 120 days from the date of
publication of this notice.
EFFECTIVE DATE: July 3, 2007)
FOR FURTHER INFORMATION CONTACT: Erin
Begnal or Anya Naschak, AD/CVD
Operations, Office 9, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230;
telephone: (202) 482–1442 or (202) 482–
6375, respectively.
SUPPLEMENTARY INFORMATION:
Background
On June 21, 2006, the Department
received a timely request from Shanghai
Bloom, in accordance with section
751(a)(2)(B) of the Tariff Act of 1930, as
amended (‘‘the Act’’), and 19 CFR
351.214(c), for a new shipper review of
the antidumping duty order on honey
from the People’s Republic of China
(‘‘PRC’’). On July 20, 2006, the
Department extended the deadline to
initiate Shanghai Bloom’s new shipper
review, in order to clarify certain
information contained in Shanghai
Bloom’s request for a new shipper
review. On August 30, 2006, after
receiving supplemental information
from Shanghai Bloom, the Department
found that the request for review with
respect to Shanghai Bloom met all of the
regulatory requirements set forth in 19
CFR 351.214(b) and initiated a
antidumping duty new shipper review
covering the period December 1, 2005,
through June 30, 2006. See Honey from
the People’s Republic of China:
Initiation of New Shipper Antidumping
Duty Review, 71 FR 52764 (September 7,
2006)
(‘‘Initiation Notice’’).
On September 11, 2006, the
Department issued an antidumping duty
questionnaire to Shanghai Bloom. See
Letter to Shanghai Bloom from Carrie
Blozy, Program Manager, AD/CVD
Operations, Office 9 (September 11,
2006). On October 2, 2006, Shanghai
Bloom responded to section A of the
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Department’s questionnaire. On October
18, 2006, Shanghai Bloom submitted its
response to sections C and D, and
importer–specific questions of the
Department’s questionnaire. On October
26, 2006, the Department issued a
supplemental questionnaire to Shanghai
Bloom, and received Shanghai Bloom’s
response on November 24, 2006. On
January 3, 2007, the Department issued
a second supplemental questionnaire to
Shanghai Bloom. Shanghai Bloom
submitted its response and its
importer’s response to the Department’s
second supplemental questionnaire on
January 31, 2007.
On January 9, 2007, the Department
extended the deadline for the
preliminary results of the new shipper
review until June 26, 2007. See Notice
of Extension of the Preliminary Results
of Antidumping Duty New Shipper
Review: Honey From the People’s
Republic of China, 72 FR 947 (January
9, 2007).
On March 20, 2007, the Department
rejected Shanghai Bloom’s January 31,
2007, response on the grounds that
proprietary information was not
sufficiently summarized in the public
version. On March 22, 2007, per the
Department’s instruction, Shanghai
Bloom resubmitted its response as well
as its importer’s response to the
Department’s second supplemental
questionnaire. On March 29, 2007,
Shanghai Bloom submitted revised FOP
spreadsheets and reconciliation charts
that related to its March 22, 2007, filing.
On March 30, 2007, the Department
issued Shanghai Bloom a third
supplemental questionnaire. The
Department received Shanghai Bloom’s
response and its importer’s response to
the third supplemental questionnaire on
April 13, 2007. On April 19, 2007,
Shanghai Bloom re–filed its importer’s
response to the Department’s March 30,
2007, importer–specific questions
contained in its third supplemental
questionnaire. From May 15, 2007,
through May 18, 2007, the Department
conducted verifications of the sales and
factors of production information
submitted by Shanghai Bloom and its
unaffiliated producer, Linxiang Jindeya
Bee–Keeping Co., Ltd. (‘‘Linxiang
Jindeya’’).
Surrogate Country and Factors
On March 13, 2007, the Department
provided parties with an opportunity to
submit publicly available information
(‘‘PAI’’) on surrogate countries and
values for consideration in these
preliminary results. See Letter to All
Interested Parties, from Christopher D.
Riker, Program Manager, AD/CVD
Operations, Office 9, regarding New
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Shipper Review of Honey from the
People’s Republic of China, dated
March 13, 2007.
On March 28, 2007, Shanghai Bloom
submitted surrogate value data (see
Letter from Shanghai Bloom to the U.S.
Department of Commerce regarding
Honey from the People’s Republic of
China New Shipper Review (March 28,
2007). On May 14, 2007, the petitioners1
submitted surrogate value data (see
Letter to the U.S. Department of
Commerce, from petitioners, regarding
9th New Shipper Review of Honey from
the People’s Republic of China, dated
May 14, 2007.
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Verification
As provided in section 782(i)(3) of the
Act and 19 CFR 351.307(b)(iv), the
Department verified the questionnaire
responses of Shanghai Bloom from May
15, 2007, to May 18, 2007, (which
included a verification of Shanghai
Bloom’s unaffiliated producer, Linxiang
Jindeya). For these companies, we used
standard verification procedures,
including on–site inspection of the
manufacturer’s and exporter’s facilities,
and examination of relevant sales and
financial records. Our verification
results are outlined in the verification
report for each company. For a further
discussion, see Memorandum to the
File, through Christopher D. Riker,
Program Manager, AD/CVD Operations,
Office 9, from Anya Naschak, Senior
International Trade Compliance
Analyst, and Michael Holton, Senior
International Trade Compliance
Analyst, regarding Verification of the
Questionnaire Responses of Shanghai
Bloom International Trading Co. Ltd., in
the Antidumping New Shipper Review
of Honey from the People’s Republic of
China (‘‘Shanghai Bloom Verification
Report’’); see also Memorandum to the
File, through Christopher D. Riker,
Program Manager, AD/CVD Operations,
Office 9, from Anya Naschak, Senior
International Trade Compliance
Analyst, and Michael Holton, Senior
International Trade Compliance
Analyst, regarding Verification of the
Questionnaire Responses of Shanghai
Bloom that relate to Linxiang Jindeya
Bee–Keeping Co., Ltd., in the
Antidumping New Shipper Review of
Honey from the People’s Republic of
China (‘‘Linxiang Jindeya Verification
Report’’).
Scope of Order
The products covered by this order
are natural honey, artificial honey
containing more than 50 percent natural
1 Petitioners are the American Honey Producers
Association and the Sioux Honey Association.
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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 subject to 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
order is dispositive.
Separate Rates
In proceedings involving non–market
economy (‘‘NME’’) countries, the
Department begins with a rebuttable
presumption that all companies within
the country are subject to government
control and, thus, should be assigned a
single antidumping duty rate unless an
exporter can affirmatively demonstrate
an absence of government control, both
in law (de jure) and in fact (de facto),
with respect to its export activities. In
this review, Shanghai Bloom submitted
information in support of its claim for
a company–specific rate.
Accordingly, we have considered
whether Shanghai Bloom is
independent from government control,
and therefore eligible for a separate rate.
The Department’s separate–rate test to
determine whether the exporters are
independent from government control
does not consider, in general,
macroeconomic/border–type controls,
e.g., export licenses, quotas, and
minimum export prices, particularly if
these controls are imposed to prevent
dumping. The test focuses, rather, on
controls over the investment, pricing,
and output decision–making process at
the individual firm level. See Certain
Cut–to-Length Carbon Steel Plate from
Ukraine: Final Determination of Sales at
Less than Fair Value, 62 FR 61754,
61757 (November 19, 1997), and
Tapered Roller Bearings and Parts
Thereof, Finished and Unfinished, from
the People’s Republic of China: Final
Results of Antidumping Duty
Administrative Review, 62 FR 61276,
61279 (November 17, 1997).
To establish whether a firm is
sufficiently independent from
government control of its export
activities to be entitled to a separate
rate, the Department analyzes each
entity exporting the subject
merchandise under a test arising from
the Notice of Final Determination of
Sales at Less Than Fair Value: Sparklers
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from the People’s Republic of China, 56
FR 20588, 20589 (May 6, 1991)
(Sparklers), as amplified by Notice of
Final Determination of Sales at Less
Than Fair Value: Silicon Carbide from
the People’s Republic of China, 59 FR
22585, 22586–7 (May 2, 1994) (Silicon
Carbide). In accordance with the
separate–rates criteria, the Department
assigns separate rates in NME cases only
if respondents can demonstrate the
absence of both de jure and de facto
government control over export
activities.
Shanghai Bloom provided complete
separate–rate information in its
responses to our original and
supplemental questionnaires.
Accordingly, we performed a separate–
rates analysis to determine whether it is
independent from government control.
Absence of De Jure Control
The Department considers the
following de jure criteria in determining
whether an individual company may be
granted a separate rate: (1) an absence of
restrictive stipulations associated with
an individual exporter’s business and
export licenses; (2) any legislative
enactments decentralizing control of
companies; and (3) other formal
measures by the government
decentralizing control of companies. See
Sparklers, 56 FR at 20589. Our analysis
shows that the evidence on the record
supports a preliminary finding of de
jure absence of government control for
Shanghai Bloom. Shanghai Bloom has
placed on the record a number of
documents to demonstrate absence of de
jure control, including the ‘‘Company
Law of the People’s Republic of China’’
(December 29, 1993), and the ‘‘Foreign
Trade Law of the People’s Republic of
China’’ (May 12, 1994). See Exhibit A–
2 of Shanghai Bloom’s October 2, 2005,
submission (Shanghai Bloom Section
A). Shanghai Bloom also submitted a
copy of its business license in Exhibit
A–3 of its section A response, and a
revised business license at verification.
See Shanghai Bloom Verification Report
at Exhibit SB2. The Shanghai Industry
and Commerce Administration Bureau
issued these licenses. Shanghai Bloom
explained that its business license
defines the scope of the company’s
business activities and ensures the
company has sufficient capital to
continue its business operations.
Shanghai Bloom affirmed that license
defines the scope of its business
operations and that there are no other
limitations imposed by the business
license.
Shanghai Bloom stated that it is
governed by the Company Law and the
Foreign Trade Law, which it claimed
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governs the establishment of limited
liability companies and provides that
such a company shall operate
independently and be responsible for its
own profits and losses and allowing
them full autonomy from the central
authority in governing their business
operations. We have reviewed Article 11
of Chapter II of the Foreign Trade Law,
which states, ‘‘foreign trade dealers
shall enjoy full autonomy in their
business operation and be responsible
for their own profits and losses in
accordance with the law.’’ As in prior
cases, we have analyzed such PRC laws
and found that they establish an absence
of de jure control. See, e.g., Pure
Magnesium from the People’s Republic
of China: Final Results of New Shipper
Review, 63 FR 3085, 3086 (January 21,
1998) and Preliminary Results of New
Shipper Review: Certain Preserved
Mushrooms From the People’s Republic
of China, 66 FR 30695, 30696 (June 7,
2001), as affirmed in Final Results of
New Shipper Review: Certain Preserved
Mushrooms From the People’s Republic
of China, 66 FR 45006 (August 27,
2001). Therefore, we preliminarily
determine that there is an absence of de
jure control over the export activities of
Shanghai Bloom.
Absence of De Facto Control
Typically, the Department considers
four factors in evaluating whether a
respondent is subject to de facto
government control of its export
functions: (1) whether the export prices
are set by, or subject to, the approval of
a government authority; (2) whether the
respondent has authority to negotiate
and sign contracts, and other
agreements; (3) whether the respondent
has autonomy from the government in
making decisions regarding the
selection of its management; and (4)
whether the respondent retains the
proceeds of its export sales and makes
independent decisions regarding
disposition of profits or financing of
losses. See Silicon Carbide, 59 FR at
22587.
As stated in previous cases, there is
some evidence that certain enactments
of the PRC central government have not
been implemented uniformly among
different sectors and/or jurisdictions in
the PRC. Id. at 22586–22587. Therefore,
the Department has determined that an
analysis of de facto control is critical in
determining whether respondents are,
in fact, subject to a degree of
government control, which would
preclude the Department from assigning
separate rates.
Shanghai Bloom has asserted the
following: (1) it is a privately owned
company; (2) there is no government
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participation in its setting of export
prices; (3) its general manager has the
authority to bind sales contracts; (4) the
company’s executive director appoints
the company’s management and it does
not have to notify government
authorities of its management selection;
(5) there are no restrictions on the use
of its export revenue; and (6) its
executive director decides how profits
will be used.
In support of its claim to independent
price negotiations, Shanghai Bloom
stated that such negotiations were
conducted through emails and
telephone calls, and that it had placed
on the record copies of all emails
between itself and its U.S. customer
during the POR.2 Shanghai Bloom also
stated that its only email account was
the account listed on the above–
referenced sales negotiations. Id.
At the verification of Shanghai Bloom,
the Department found that the emails
placed on the record by Shanghai Bloom
were not stored in Shanghai Bloom’s
email account, and were instead stored
in text files on Shanghai Bloom’s
computer hard drive. See Shanghai
Bloom Verification Report at 9. In
addition, the Department found at
verification that Shanghai Bloom used
an additional email address for official
company business; the Department
requested access to this email account.
However, company officials stated that
all information in the account had been
deleted prior to granting the Department
access to the account. See Shanghai
Bloom Verification Report at 8.
However, the Department successfully
verified that Shanghai Bloom is a
privately owned company (see Shanghai
Bloom Verification Report at 3–4 and
Exhibit SB2), that Shanghai Bloom
independently selected management (id.
at 10), and that Shanghai Bloom had
authority to determine the use of sales
revenue (id.). Moreover, the Department
found no indications of restrictions on
the use of export revenue (id.).
Furthermore, Shanghai Bloom supplied
sales negotiation documentation
including a purchase order and sales
contract with an independent third
party, demonstrating its independent
setting of export prices. See Shanghai
Bloom Verification Report at 18.
Irrespective of the issues with respect
to the email accounts, which are
addressed separately below under ‘‘Use
of Adverse Facts Otherwise Available,’’
because evidence on the record
2 See e.g., Shanghai Bloom’s Section A at Exhibit
A-5, Shanghai Bloom’s Response to the
Departments Second Supplemental Questionnaire
at 3, (March 22, 2007), and Shanghai Bloom’s
Response to the Department’s Third Supplemental
Questionnaire at 1, (April 13, 2007).
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preliminarily indicates an absence of
government control, both in law and in
fact, over Shanghai Bloom’s export
activities, we preliminarily determine
that it has met the criteria for the
application of a separate rate. However,
we will continue to carefully examine
these issues for the Final Results.
Use of Adverse Facts Otherwise
Available
For the reasons outlined below, we
have applied total adverse facts
available to Shanghai Bloom. Section
776(a)(2) of the Act provides that, if an
interested party: (A) withholds
information that has been requested by
the Department; (B) fails to provide such
information in a timely manner or in the
form or manner requested subject to
sections 782(c)(1) and (e) of the Act; (C)
significantly impedes a proceeding
under the antidumping statute; or (D)
provides such information but the
information cannot be verified, the
Department shall, subject to section
782(d) of the Act, use facts otherwise
available in reaching the applicable
determination. Section 782(d) of the Act
provides that when the Department
finds that a respondent has not
complied with a request for information,
the Department shall inform the
respondent of the deficiency and allow
them an opportunity to remedy or
explain the deficiency. If the
Department finds that the subsequent
response of the respondent is deficient
or is not filed within the applicable time
limits, the Department may, subject to
subsection (e) disregard all or part of the
original and subsequent responses.
Moreover, section 782(e) states that the
Department shall not decline to
consider information by a respondent if:
(1) the information is submitted by the
deadline established for its submission;
(2) the information can be verified; (3)
the information is not so incomplete
that it cannot serve as a reliable basis for
reaching the applicable determination;
(4) the interested party has
demonstrated that it acted to the best of
its ability in providing information and
meeting the requirements established by
the Department with respect to the
information; and (5) the information can
be used without undue difficulties.
The Department conducted
verification of Shanghai Bloom’s sales
and factors of production information
placed on the record of this new shipper
review. Shanghai Bloom impeded the
Department’s verification of its
information by destroying or deleting
information needed to verify
completeness and price negotiations
and by providing unverifiable factors of
production (‘‘FOP’’) data. See Shanghai
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Bloom Verification Report; see also
Linxiang Jindeya Verification Report.
Because Shanghai Bloom deleted
information needed to verify
completeness and price negotiations,
section 782(d) and (e) of the Act are not
applicable. See Memorandum to James
C. Doyle, Director, AD/CVD Operations,
Office 9, Import Administration from
Erin Begnal, Senior International Trade
Analyst, AD/CVD Operations, Office 9,
Import Administration, regarding Honey
from the People’s Republic of China:
Preliminary Application of Adverse
Facts Available to Shanghai Bloom
International Trading Co., Ltd. (June 26,
2007).
By hindering the Department’s ability
to conduct verification through
destroying and/or deleting pertinent
information and by providing
information at verification that directly
conflicted with information previously
submitted on the record by Shanghai
Bloom, Shanghai Bloom has not
cooperated to the best of its ability.
According to section 776(b) of the
Act, 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,’’
the Department may use information
that is adverse to the interests of the
party as facts otherwise available.
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 Statement of Administrative
Action (‘‘SAA’’) accompanying the
Uruguay Round Agreements Act
(‘‘URAA’’), H.R. Rep. No. 103–316, Vol.
1 at 870 (1994).
As explained above, Shanghai Bloom
provided unverifiable information on
the record, deleted information
requested by the Department, and failed
to provide evidence of price
negotiations. Therefore, Shanghai
Bloom did not cooperate to the best of
its ability. Because Shanghai Bloom did
not cooperate to the best of its ability in
the proceeding, the Department finds it
necessary, pursuant to sections
776(a)(2)(A),(B) and (C) and 776(b) of
the Act, to use adverse facts available
(‘‘AFA’’) as the basis for these
preliminary results of review for
Shanghai Bloom .
Selection of AFA Rate
In deciding which facts to use as
AFA, section 776(b) of the Act and 19
CFR 351.308(c)(1) authorize the
Department to rely on information
derived from (1) the petition, (2) a final
determination in the investigation, (3)
any previous review or determination,
or (4) any information placed on the
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record. In reviews, the Department
normally selects, as AFA, the highest
rate on the record of any segment of the
proceeding. See, e.g., Freshwater
Crawfish Tail Meat from the People’s
Republic of China: Notice of Final
Results of Antidumping Duty
Administrative Review, 68 FR 19504
(April 21, 2003). The Court of
International Trade (‘‘CIT’’) and the
Federal Circuit have consistently
upheld the Department’s practice in this
regard. See Rhone Poulenc, Inc. v.
United States, 899 F.2d 1185, 1190 (Fed.
Circ. 1990) (‘‘Rhone Poulenc’’); NSK
Ltd. v. United States, 346 F. Supp. 2d
1312, 1335 (CIT 2004) (upholding a
73.55 percent total AFA rate, the highest
available dumping margin from a
different respondent in a LTFV
investigation); see also Kompass Food
Trading Int’l v. United States, 24 CIT
678, 689 (2000) (upholding a 51.16
percent total AFA rate, the highest
available dumping margin from a
different, fully cooperative respondent);
and Shanghai Taoen International
Trading Co., Ltd. v. United States, 360
F. Supp 2d 1339, 1348 (CIT 2005)
(upholding a 223.01 percent total AFA
rate, the highest available dumping
margin from a different respondent in a
previous administrative review).
The Department’s practice when
selecting an adverse rate from among
the possible sources of information is to
ensure that the margin is sufficiently
adverse ‘‘as to effectuate the purpose of
the facts available role to induce
respondents to provide the Department
with complete and accurate information
in a timely manner.’’ See Static Random
Access Memory Semiconductors from
Taiwan; Final Determination of Sales at
Less than Fair Value, 63 FR 8909, 8932
(February 23, 1998). The Department’s
practice also ensures ‘‘that the party
does not obtain a more favorable result
by failing to cooperate than if it had
cooperated fully.’’ See SAA at 870; see
also Final Determination of Sales at
Less than Fair Value: Certain Frozen
and Canned Warmwater Shrimp from
Brazil, 69 FR 76910 (December 23,
2004); D&L Supply Co. v. United States,
113 F. 3d 1220, 1223 (Fed. Cir. 1997).
In choosing the appropriate balance
between providing respondents with an
incentive to respond accurately and
imposing a rate that is reasonably
related to the respondent’s prior
commercial activity, selecting the
highest prior margin ‘‘reflects a common
sense inference that the highest prior
margin is the most probative evidence of
current margins, because, if it were not
so, the importer, knowing of the rule,
would have produced current
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36425
information showing the margin to be
less.’’ Rhone Poulenc, 899 F.2d at 1190.
Consistent with the statute, court
precedent, and its normal practice, the
Department has assigned the rate of
212.39 percent, the highest rate on the
record of any segment of the proceeding,
to Shanghai Bloom as AFA. See, e.g.,
Honey from the People’s Republic of
China: Final Results and Final
Rescission, In Part, of Antidumping
Duty Administrative Review 71 FR
34893 (June 16, 2006) (‘‘Third AR Final
Results’’). As discussed further below,
this rate has been corroborated.
Corroboration of Secondary
Information Used as AFA
Section 776(c) of the Act provides
that, where the Department selects from
among the facts otherwise available and
relies on ‘‘secondary information,’’ the
Department shall, to the extent
practicable, corroborate that information
from independent sources reasonably at
the Department’s disposal. Secondary
information is described in the SAA 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.
The SAA states that ‘‘corroborate’’
means to determine that the information
used has probative value. The
Department has determined that to have
probative value information must be
reliable and relevant. Tapered Roller
Bearings and Parts Thereof, Finished
and Unfinished from Japan, and
Tapered Roller Bearings Four Inches or
Less in Outside Diameter, and
Components Thereof, from Japan:
Preliminary Results of Antidumping
Duty Administrative Reviews and
Partial Termination of Administrative
Reviews, 61 FR 57391, 57392 (November
6, 1996). The SAA also states that
independent sources used to corroborate
such evidence may include, for
example, published price lists, official
import statistics and customs data, and
information obtained from interested
parties during the particular
investigation. See Preliminary
Determination of Sales at Less Than
Fair Value: High and Ultra–High
Voltage Ceramic Station Post Insulators
from Japan, 68 FR 35627 (June 16,
2003); and, Final Determination of Sales
at Less Than Fair Value: Live Swine
From Canada, 70 FR 12181 (March 11,
2005).
To be considered corroborated,
information must be found to be both
reliable and relevant. Unlike other types
of information, such as input costs or
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jlentini on PROD1PC65 with NOTICES
selling expenses, there are no
independent sources for calculated
dumping margins. The only sources for
calculated margins are administrative
determinations. The information upon
which the AFA rate we are applying for
the current review was calculated
during the third administrative review.
See Third AR Final Results.
Furthermore, no information has been
presented in the current review that
calls into question the reliability of this
information. Thus, the Department finds
that the information is reliable.
With respect to the relevance aspect
of corroboration, the Department will
consider information reasonably at its
disposal to determine whether a margin
continues to have relevance. Where
circumstances indicate that the selected
margin is not appropriate as adverse
facts available, the Department will
disregard the margin and determine an
appropriate margin. See, e.g., Fresh Cut
Flowers from Mexico: Final Results of
Antidumping Administrative Review, 61
FR 6812 (February 22, 1996). Similarly,
the Department does not apply a margin
that has been discredited. See D & L
Supply Co. v. United States, 113 F.3d
1220, 1221 (Fed. Cir. 1997) (the
Department will not use a margin that
has been judicially invalidated). The
AFA rate we are applying for the current
review was corroborated in the third
administrative review of honey from the
PRC. See Third AR Final Results.
Moreover, as there is no information on
the record of this review that
demonstrates that this rate is not
appropriately used as adverse facts
available, we determine that this rate
has relevance.
As the Third AR Final Results margin
is both reliable and relevant, we find
that it has probative value. As a result,
the Department determines that the
Third AR Final Results margin is
corroborated for the purposes of this
administrative review and may
reasonably be applied to Shanghai
Bloom. Because these are preliminary
results of review, the Department will
consider all margins on the record at the
time of the final results of review for the
purpose of determining the most
appropriate final margin for Shanghai
Bloom. See Preliminary Determination
of Sales at Less Than Fair Value: Solid
Fertilizer Grade Ammonium Nitrate
From the Russian Federation, 65 FR
1139 (January 7, 2000).
Preliminary Results of Review
We preliminarily determine that the
following margin exists during the
period December 1, 2005, through June
30, 2006:
VerDate Aug<31>2005
17:57 Jul 02, 2007
Jkt 211001
Cash Deposit Requirements
HONEY FROM THE PRC
Shanghai Bloom ...........
212.39
We will disclose our analysis to
parties to these proceedings within five
days of the date of publication of this
notice. Any interested party may request
a hearing within 30 days of publication
of this notice.
Interested parties who wish to request
a hearing or to participate if one is
requested, must submit a written
request to the Assistant Secretary for
Import Administration within 30 days
of the date of publication of this notice.
Requests should contain: (1) the party’s
name, address, and telephone number;
(2) the number of participants; and (3)
a list of issues to be discussed. See 19
CFR 351.310(c).
Issues raised in the hearing will be
limited to those raised in case and
rebuttal briefs. Case briefs from
interested parties may be submitted not
later than 30 days of the date of
publication of this notice, pursuant to
19 CFR 351.309(c). Rebuttal briefs,
limited to issues raised in the case
briefs, will be due five days later,
pursuant to 19 CFR 351.309(d). Parties
who submit case or rebuttal briefs in
this proceeding are requested to submit
with each argument (1) a statement of
the issue and (2) a brief summary of the
argument. Parties are also encouraged to
provide a summary of the arguments not
to exceed five pages and a table of
statutes, regulations, and cases cited.
The Department will issue the final
results of this review, including the
results of its analysis of issues raised in
any such written briefs or at the hearing,
if held, not later than 120 days after the
date of publication of this notice.
Assessment Rates
Pursuant to 19 CFR 351.212(b), the
Department will determine, and CBP
shall assess, antidumping duties on all
appropriate entries. The Department
will issue appropriate assessment
instructions directly to CBP within 15
days of publication of the final results
of this review. We will instruct CBP to
assess antidumping duties on all
appropriate entries covered by this
review if any assessment rate calculated
in the final results of this review is
above de minimis. The final results of
this review shall be the basis for the
assessment of antidumping duties on
entries of merchandise covered by the
final results of this review and for future
deposits of estimated duties, where
applicable.
PO 00000
Frm 00008
Fmt 4703
Sfmt 4703
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 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: (1) the cash
deposit rate will be established in the
final results of this review (except, if the
rate is zero or de minimis, i.e., less than
0.5 percent, no cash deposit will be
required for that company); (2) for
previously investigated or reviewed PRC
and non–PRC exporters not listed above
that have separate rates, the cash
deposit rate will continue to be the
exporter–specific rate published for the
most recent period; (3) for all PRC
exporters of subject merchandise which
have not been found to be entitled to a
separate rate, the cash deposit rate will
be the PRC–wide rate of 212.39 percent;
and (4) for all non–PRC exporters of
subject merchandise which have not
received their own rate, the cash deposit
rate will be the rate applicable to the
PRC exporters that supplied that non–
PRC exporter. 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 serves as a preliminary
reminder to importers of their
responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
This new shipper review and notice
are in accordance with sections
751(a)(1), 751(a)(2)(B), and 777(i) of the
Act and 19 CFR 351.213 and 351.214.
Dated: June 26, 2007.
Joseph A. Spetrini,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. E7–12891 Filed 7–2–03; 8:45 am]
BILLING CODE 3510–DS–S
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[Federal Register Volume 72, Number 127 (Tuesday, July 3, 2007)]
[Notices]
[Pages 36422-36426]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-12891]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-863]
Honey from the People's Republic of China: Preliminary Results of
Antidumping Duty New Shipper Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (``the Department'') is currently
conducting the semi-annual 2005-2006 new shipper review of the
antidumping duty order on honey from the People's Republic of China
(``PRC''). We preliminarily determine to apply adverse facts available
(``AFA'') with respect to Shanghai Bloom International Trading Co.,
Ltd. (``Shanghai Bloom''), which failed to cooperate to the best of its
ability, provided unverifiable information, and impeded the proceeding.
If these preliminary results are adopted in our final results of this
review, we will instruct U.S. Customs and Border Protection (``CBP'')
to assess antidumping duties on entries of subject merchandise during
the period of review (``POR'') for which the importer-specific
assessment rates are above de minimis.
Interested parties are invited to comment on these preliminary
results. We will issue the final results no later than 120 days from
the date of publication of this notice.
EFFECTIVE DATE: July 3, 2007)
FOR FURTHER INFORMATION CONTACT: Erin Begnal or Anya Naschak, AD/CVD
Operations, Office 9, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
1442 or (202) 482-6375, respectively.
SUPPLEMENTARY INFORMATION:
Background
On June 21, 2006, the Department received a timely request from
Shanghai Bloom, in accordance with section 751(a)(2)(B) of the Tariff
Act of 1930, as amended (``the Act''), and 19 CFR 351.214(c), for a new
shipper review of the antidumping duty order on honey from the People's
Republic of China (``PRC''). On July 20, 2006, the Department extended
the deadline to initiate Shanghai Bloom's new shipper review, in order
to clarify certain information contained in Shanghai Bloom's request
for a new shipper review. On August 30, 2006, after receiving
supplemental information from Shanghai Bloom, the Department found that
the request for review with respect to Shanghai Bloom met all of the
regulatory requirements set forth in 19 CFR 351.214(b) and initiated a
antidumping duty new shipper review covering the period December 1,
2005, through June 30, 2006. See Honey from the People's Republic of
China: Initiation of New Shipper Antidumping Duty Review, 71 FR 52764
(September 7, 2006)
(``Initiation Notice'').
On September 11, 2006, the Department issued an antidumping duty
questionnaire to Shanghai Bloom. See Letter to Shanghai Bloom from
Carrie Blozy, Program Manager, AD/CVD Operations, Office 9 (September
11, 2006). On October 2, 2006, Shanghai Bloom responded to section A of
the Department's questionnaire. On October 18, 2006, Shanghai Bloom
submitted its response to sections C and D, and importer-specific
questions of the Department's questionnaire. On October 26, 2006, the
Department issued a supplemental questionnaire to Shanghai Bloom, and
received Shanghai Bloom's response on November 24, 2006. On January 3,
2007, the Department issued a second supplemental questionnaire to
Shanghai Bloom. Shanghai Bloom submitted its response and its
importer's response to the Department's second supplemental
questionnaire on January 31, 2007.
On January 9, 2007, the Department extended the deadline for the
preliminary results of the new shipper review until June 26, 2007. See
Notice of Extension of the Preliminary Results of Antidumping Duty New
Shipper Review: Honey From the People's Republic of China, 72 FR 947
(January 9, 2007).
On March 20, 2007, the Department rejected Shanghai Bloom's January
31, 2007, response on the grounds that proprietary information was not
sufficiently summarized in the public version. On March 22, 2007, per
the Department's instruction, Shanghai Bloom resubmitted its response
as well as its importer's response to the Department's second
supplemental questionnaire. On March 29, 2007, Shanghai Bloom submitted
revised FOP spreadsheets and reconciliation charts that related to its
March 22, 2007, filing. On March 30, 2007, the Department issued
Shanghai Bloom a third supplemental questionnaire. The Department
received Shanghai Bloom's response and its importer's response to the
third supplemental questionnaire on April 13, 2007. On April 19, 2007,
Shanghai Bloom re-filed its importer's response to the Department's
March 30, 2007, importer-specific questions contained in its third
supplemental questionnaire. From May 15, 2007, through May 18, 2007,
the Department conducted verifications of the sales and factors of
production information submitted by Shanghai Bloom and its unaffiliated
producer, Linxiang Jindeya Bee-Keeping Co., Ltd. (``Linxiang
Jindeya'').
Surrogate Country and Factors
On March 13, 2007, the Department provided parties with an
opportunity to submit publicly available information (``PAI'') on
surrogate countries and values for consideration in these preliminary
results. See Letter to All Interested Parties, from Christopher D.
Riker, Program Manager, AD/CVD Operations, Office 9, regarding New
[[Page 36423]]
Shipper Review of Honey from the People's Republic of China, dated
March 13, 2007.
On March 28, 2007, Shanghai Bloom submitted surrogate value data
(see Letter from Shanghai Bloom to the U.S. Department of Commerce
regarding Honey from the People's Republic of China New Shipper Review
(March 28, 2007). On May 14, 2007, the petitioners\1\ submitted
surrogate value data (see Letter to the U.S. Department of Commerce,
from petitioners, regarding 9th New Shipper Review of Honey from the
People's Republic of China, dated May 14, 2007.
---------------------------------------------------------------------------
\1\ Petitioners are the American Honey Producers Association and
the Sioux Honey Association.
---------------------------------------------------------------------------
Verification
As provided in section 782(i)(3) of the Act and 19 CFR
351.307(b)(iv), the Department verified the questionnaire responses of
Shanghai Bloom from May 15, 2007, to May 18, 2007, (which included a
verification of Shanghai Bloom's unaffiliated producer, Linxiang
Jindeya). For these companies, we used standard verification
procedures, including on-site inspection of the manufacturer's and
exporter's facilities, and examination of relevant sales and financial
records. Our verification results are outlined in the verification
report for each company. For a further discussion, see Memorandum to
the File, through Christopher D. Riker, Program Manager, AD/CVD
Operations, Office 9, from Anya Naschak, Senior International Trade
Compliance Analyst, and Michael Holton, Senior International Trade
Compliance Analyst, regarding Verification of the Questionnaire
Responses of Shanghai Bloom International Trading Co. Ltd., in the
Antidumping New Shipper Review of Honey from the People's Republic of
China (``Shanghai Bloom Verification Report''); see also Memorandum to
the File, through Christopher D. Riker, Program Manager, AD/CVD
Operations, Office 9, from Anya Naschak, Senior International Trade
Compliance Analyst, and Michael Holton, Senior International Trade
Compliance Analyst, regarding Verification of the Questionnaire
Responses of Shanghai Bloom that relate to Linxiang Jindeya Bee-Keeping
Co., Ltd., in the Antidumping New Shipper Review of Honey from the
People's Republic of China (``Linxiang Jindeya Verification Report'').
Scope of Order
The products covered by this order 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 subject to 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 order is
dispositive.
Separate Rates
In proceedings involving non-market economy (``NME'') countries,
the Department begins with a rebuttable presumption that all companies
within the country are subject to government control and, thus, should
be assigned a single antidumping duty rate unless an exporter can
affirmatively demonstrate an absence of government control, both in law
(de jure) and in fact (de facto), with respect to its export
activities. In this review, Shanghai Bloom submitted information in
support of its claim for a company-specific rate.
Accordingly, we have considered whether Shanghai Bloom is
independent from government control, and therefore eligible for a
separate rate. The Department's separate-rate test to determine whether
the exporters are independent from government control does not
consider, in general, macroeconomic/border-type controls, e.g., export
licenses, quotas, and minimum export prices, particularly if these
controls are imposed to prevent dumping. The test focuses, rather, on
controls over the investment, pricing, and output decision-making
process at the individual firm level. See Certain Cut-to-Length Carbon
Steel Plate from Ukraine: Final Determination of Sales at Less than
Fair Value, 62 FR 61754, 61757 (November 19, 1997), and Tapered Roller
Bearings and Parts Thereof, Finished and Unfinished, from the People's
Republic of China: Final Results of Antidumping Duty Administrative
Review, 62 FR 61276, 61279 (November 17, 1997).
To establish whether a firm is sufficiently independent from
government control of its export activities to be entitled to a
separate rate, the Department analyzes each entity exporting the
subject merchandise under a test arising from the Notice of Final
Determination of Sales at Less Than Fair Value: Sparklers from the
People's Republic of China, 56 FR 20588, 20589 (May 6, 1991)
(Sparklers), as amplified by Notice of Final Determination of Sales at
Less Than Fair Value: Silicon Carbide from the People's Republic of
China, 59 FR 22585, 22586-7 (May 2, 1994) (Silicon Carbide). In
accordance with the separate-rates criteria, the Department assigns
separate rates in NME cases only if respondents can demonstrate the
absence of both de jure and de facto government control over export
activities.
Shanghai Bloom provided complete separate-rate information in its
responses to our original and supplemental questionnaires. Accordingly,
we performed a separate-rates analysis to determine whether it is
independent from government control.
Absence of De Jure Control
The Department considers the following de jure criteria in
determining whether an individual company may be granted a separate
rate: (1) an absence of restrictive stipulations associated with an
individual exporter's business and export licenses; (2) any legislative
enactments decentralizing control of companies; and (3) other formal
measures by the government decentralizing control of companies. See
Sparklers, 56 FR at 20589. Our analysis shows that the evidence on the
record supports a preliminary finding of de jure absence of government
control for Shanghai Bloom. Shanghai Bloom has placed on the record a
number of documents to demonstrate absence of de jure control,
including the ``Company Law of the People's Republic of China''
(December 29, 1993), and the ``Foreign Trade Law of the People's
Republic of China'' (May 12, 1994). See Exhibit A-2 of Shanghai Bloom's
October 2, 2005, submission (Shanghai Bloom Section A). Shanghai Bloom
also submitted a copy of its business license in Exhibit A-3 of its
section A response, and a revised business license at verification. See
Shanghai Bloom Verification Report at Exhibit SB2. The Shanghai
Industry and Commerce Administration Bureau issued these licenses.
Shanghai Bloom explained that its business license defines the scope of
the company's business activities and ensures the company has
sufficient capital to continue its business operations. Shanghai Bloom
affirmed that license defines the scope of its business operations and
that there are no other limitations imposed by the business license.
Shanghai Bloom stated that it is governed by the Company Law and
the Foreign Trade Law, which it claimed
[[Page 36424]]
governs the establishment of limited liability companies and provides
that such a company shall operate independently and be responsible for
its own profits and losses and allowing them full autonomy from the
central authority in governing their business operations. We have
reviewed Article 11 of Chapter II of the Foreign Trade Law, which
states, ``foreign trade dealers shall enjoy full autonomy in their
business operation and be responsible for their own profits and losses
in accordance with the law.'' As in prior cases, we have analyzed such
PRC laws and found that they establish an absence of de jure control.
See, e.g., Pure Magnesium from the People's Republic of China: Final
Results of New Shipper Review, 63 FR 3085, 3086 (January 21, 1998) and
Preliminary Results of New Shipper Review: Certain Preserved Mushrooms
From the People's Republic of China, 66 FR 30695, 30696 (June 7, 2001),
as affirmed in Final Results of New Shipper Review: Certain Preserved
Mushrooms From the People's Republic of China, 66 FR 45006 (August 27,
2001). Therefore, we preliminarily determine that there is an absence
of de jure control over the export activities of Shanghai Bloom.
Absence of De Facto Control
Typically, the Department considers four factors in evaluating
whether a respondent is subject to de facto government control of its
export functions: (1) whether the export prices are set by, or subject
to, the approval of a government authority; (2) whether the respondent
has authority to negotiate and sign contracts, and other agreements;
(3) whether the respondent has autonomy from the government in making
decisions regarding the selection of its management; and (4) whether
the respondent retains the proceeds of its export sales and makes
independent decisions regarding disposition of profits or financing of
losses. See Silicon Carbide, 59 FR at 22587.
As stated in previous cases, there is some evidence that certain
enactments of the PRC central government have not been implemented
uniformly among different sectors and/or jurisdictions in the PRC. Id.
at 22586-22587. Therefore, the Department has determined that an
analysis of de facto control is critical in determining whether
respondents are, in fact, subject to a degree of government control,
which would preclude the Department from assigning separate rates.
Shanghai Bloom has asserted the following: (1) it is a privately
owned company; (2) there is no government participation in its setting
of export prices; (3) its general manager has the authority to bind
sales contracts; (4) the company's executive director appoints the
company's management and it does not have to notify government
authorities of its management selection; (5) there are no restrictions
on the use of its export revenue; and (6) its executive director
decides how profits will be used.
In support of its claim to independent price negotiations, Shanghai
Bloom stated that such negotiations were conducted through emails and
telephone calls, and that it had placed on the record copies of all
emails between itself and its U.S. customer during the POR.\2\ Shanghai
Bloom also stated that its only email account was the account listed on
the above-referenced sales negotiations. Id.
---------------------------------------------------------------------------
\2\ See e.g., Shanghai Bloom's Section A at Exhibit A-5,
Shanghai Bloom's Response to the Departments Second Supplemental
Questionnaire at 3, (March 22, 2007), and Shanghai Bloom's Response
to the Department's Third Supplemental Questionnaire at 1, (April
13, 2007).
---------------------------------------------------------------------------
At the verification of Shanghai Bloom, the Department found that
the emails placed on the record by Shanghai Bloom were not stored in
Shanghai Bloom's email account, and were instead stored in text files
on Shanghai Bloom's computer hard drive. See Shanghai Bloom
Verification Report at 9. In addition, the Department found at
verification that Shanghai Bloom used an additional email address for
official company business; the Department requested access to this
email account. However, company officials stated that all information
in the account had been deleted prior to granting the Department access
to the account. See Shanghai Bloom Verification Report at 8. However,
the Department successfully verified that Shanghai Bloom is a privately
owned company (see Shanghai Bloom Verification Report at 3-4 and
Exhibit SB2), that Shanghai Bloom independently selected management
(id. at 10), and that Shanghai Bloom had authority to determine the use
of sales revenue (id.). Moreover, the Department found no indications
of restrictions on the use of export revenue (id.). Furthermore,
Shanghai Bloom supplied sales negotiation documentation including a
purchase order and sales contract with an independent third party,
demonstrating its independent setting of export prices. See Shanghai
Bloom Verification Report at 18.
Irrespective of the issues with respect to the email accounts,
which are addressed separately below under ``Use of Adverse Facts
Otherwise Available,'' because evidence on the record preliminarily
indicates an absence of government control, both in law and in fact,
over Shanghai Bloom's export activities, we preliminarily determine
that it has met the criteria for the application of a separate rate.
However, we will continue to carefully examine these issues for the
Final Results.
Use of Adverse Facts Otherwise Available
For the reasons outlined below, we have applied total adverse facts
available to Shanghai Bloom. Section 776(a)(2) of the Act provides
that, if an interested party: (A) withholds information that has been
requested by the Department; (B) fails to provide such information in a
timely manner or in the form or manner requested subject to sections
782(c)(1) and (e) of the Act; (C) significantly impedes a proceeding
under the antidumping statute; or (D) provides such information but the
information cannot be verified, the Department shall, subject to
section 782(d) of the Act, use facts otherwise available in reaching
the applicable determination. Section 782(d) of the Act provides that
when the Department finds that a respondent has not complied with a
request for information, the Department shall inform the respondent of
the deficiency and allow them an opportunity to remedy or explain the
deficiency. If the Department finds that the subsequent response of the
respondent is deficient or is not filed within the applicable time
limits, the Department may, subject to subsection (e) disregard all or
part of the original and subsequent responses. Moreover, section 782(e)
states that the Department shall not decline to consider information by
a respondent if: (1) the information is submitted by the deadline
established for its submission; (2) the information can be verified;
(3) the information is not so incomplete that it cannot serve as a
reliable basis for reaching the applicable determination; (4) the
interested party has demonstrated that it acted to the best of its
ability in providing information and meeting the requirements
established by the Department with respect to the information; and (5)
the information can be used without undue difficulties.
The Department conducted verification of Shanghai Bloom's sales and
factors of production information placed on the record of this new
shipper review. Shanghai Bloom impeded the Department's verification of
its information by destroying or deleting information needed to verify
completeness and price negotiations and by providing unverifiable
factors of production (``FOP'') data. See Shanghai
[[Page 36425]]
Bloom Verification Report; see also Linxiang Jindeya Verification
Report. Because Shanghai Bloom deleted information needed to verify
completeness and price negotiations, section 782(d) and (e) of the Act
are not applicable. See Memorandum to James C. Doyle, Director, AD/CVD
Operations, Office 9, Import Administration from Erin Begnal, Senior
International Trade Analyst, AD/CVD Operations, Office 9, Import
Administration, regarding Honey from the People's Republic of China:
Preliminary Application of Adverse Facts Available to Shanghai Bloom
International Trading Co., Ltd. (June 26, 2007).
By hindering the Department's ability to conduct verification
through destroying and/or deleting pertinent information and by
providing information at verification that directly conflicted with
information previously submitted on the record by Shanghai Bloom,
Shanghai Bloom has not cooperated to the best of its ability.
According to section 776(b) of the Act, 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,'' the
Department may use information that is adverse to the interests of the
party as facts otherwise available. 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 Statement
of Administrative Action (``SAA'') accompanying the Uruguay Round
Agreements Act (``URAA''), H.R. Rep. No. 103-316, Vol. 1 at 870 (1994).
As explained above, Shanghai Bloom provided unverifiable
information on the record, deleted information requested by the
Department, and failed to provide evidence of price negotiations.
Therefore, Shanghai Bloom did not cooperate to the best of its ability.
Because Shanghai Bloom did not cooperate to the best of its ability in
the proceeding, the Department finds it necessary, pursuant to sections
776(a)(2)(A),(B) and (C) and 776(b) of the Act, to use adverse facts
available (``AFA'') as the basis for these preliminary results of
review for Shanghai Bloom .
Selection of AFA Rate
In deciding which facts to use as AFA, section 776(b) of the Act
and 19 CFR 351.308(c)(1) authorize the Department to rely on
information derived from (1) the petition, (2) a final determination in
the investigation, (3) any previous review or determination, or (4) any
information placed on the record. In reviews, the Department normally
selects, as AFA, the highest rate on the record of any segment of the
proceeding. See, e.g., Freshwater Crawfish Tail Meat from the People's
Republic of China: Notice of Final Results of Antidumping Duty
Administrative Review, 68 FR 19504 (April 21, 2003). The Court of
International Trade (``CIT'') and the Federal Circuit have consistently
upheld the Department's practice in this regard. See Rhone Poulenc,
Inc. v. United States, 899 F.2d 1185, 1190 (Fed. Circ. 1990) (``Rhone
Poulenc''); NSK Ltd. v. United States, 346 F. Supp. 2d 1312, 1335 (CIT
2004) (upholding a 73.55 percent total AFA rate, the highest available
dumping margin from a different respondent in a LTFV investigation);
see also Kompass Food Trading Int'l v. United States, 24 CIT 678, 689
(2000) (upholding a 51.16 percent total AFA rate, the highest available
dumping margin from a different, fully cooperative respondent); and
Shanghai Taoen International Trading Co., Ltd. v. United States, 360 F.
Supp 2d 1339, 1348 (CIT 2005) (upholding a 223.01 percent total AFA
rate, the highest available dumping margin from a different respondent
in a previous administrative review).
The Department's practice when selecting an adverse rate from among
the possible sources of information is to ensure that the margin is
sufficiently adverse ``as to effectuate the purpose of the facts
available role to induce respondents to provide the Department with
complete and accurate information in a timely manner.'' See Static
Random Access Memory Semiconductors from Taiwan; Final Determination of
Sales at Less than Fair Value, 63 FR 8909, 8932 (February 23, 1998).
The Department's practice also ensures ``that the party does not obtain
a more favorable result by failing to cooperate than if it had
cooperated fully.'' See SAA at 870; see also Final Determination of
Sales at Less than Fair Value: Certain Frozen and Canned Warmwater
Shrimp from Brazil, 69 FR 76910 (December 23, 2004); D&L Supply Co. v.
United States, 113 F. 3d 1220, 1223 (Fed. Cir. 1997). In choosing the
appropriate balance between providing respondents with an incentive to
respond accurately and imposing a rate that is reasonably related to
the respondent's prior commercial activity, selecting the highest prior
margin ``reflects a common sense inference that the highest prior
margin is the most probative evidence of current margins, because, if
it were not so, the importer, knowing of the rule, would have produced
current information showing the margin to be less.'' Rhone Poulenc, 899
F.2d at 1190. Consistent with the statute, court precedent, and its
normal practice, the Department has assigned the rate of 212.39
percent, the highest rate on the record of any segment of the
proceeding, to Shanghai Bloom as AFA. See, e.g., Honey from the
People's Republic of China: Final Results and Final Rescission, In
Part, of Antidumping Duty Administrative Review 71 FR 34893 (June 16,
2006) (``Third AR Final Results''). As discussed further below, this
rate has been corroborated.
Corroboration of Secondary Information Used as AFA
Section 776(c) of the Act provides that, where the Department
selects from among the facts otherwise available and relies on
``secondary information,'' the Department shall, to the extent
practicable, corroborate that information from independent sources
reasonably at the Department's disposal. Secondary information is
described in the SAA 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. The
SAA states that ``corroborate'' means to determine that the information
used has probative value. The Department has determined that to have
probative value information must be reliable and relevant. Tapered
Roller Bearings and Parts Thereof, Finished and Unfinished from Japan,
and Tapered Roller Bearings Four Inches or Less in Outside Diameter,
and Components Thereof, from Japan: Preliminary Results of Antidumping
Duty Administrative Reviews and Partial Termination of Administrative
Reviews, 61 FR 57391, 57392 (November 6, 1996). The SAA also states
that independent sources used to corroborate such evidence may include,
for example, published price lists, official import statistics and
customs data, and information obtained from interested parties during
the particular investigation. See Preliminary Determination of Sales at
Less Than Fair Value: High and Ultra-High Voltage Ceramic Station Post
Insulators from Japan, 68 FR 35627 (June 16, 2003); and, Final
Determination of Sales at Less Than Fair Value: Live Swine From Canada,
70 FR 12181 (March 11, 2005).
To be considered corroborated, information must be found to be both
reliable and relevant. Unlike other types of information, such as input
costs or
[[Page 36426]]
selling expenses, there are no independent sources for calculated
dumping margins. The only sources for calculated margins are
administrative determinations. The information upon which the AFA rate
we are applying for the current review was calculated during the third
administrative review. See Third AR Final Results. Furthermore, no
information has been presented in the current review that calls into
question the reliability of this information. Thus, the Department
finds that the information is reliable.
With respect to the relevance aspect of corroboration, the
Department will consider information reasonably at its disposal to
determine whether a margin continues to have relevance. Where
circumstances indicate that the selected margin is not appropriate as
adverse facts available, the Department will disregard the margin and
determine an appropriate margin. See, e.g., Fresh Cut Flowers from
Mexico: Final Results of Antidumping Administrative Review, 61 FR 6812
(February 22, 1996). Similarly, the Department does not apply a margin
that has been discredited. See D & L Supply Co. v. United States, 113
F.3d 1220, 1221 (Fed. Cir. 1997) (the Department will not use a margin
that has been judicially invalidated). The AFA rate we are applying for
the current review was corroborated in the third administrative review
of honey from the PRC. See Third AR Final Results. Moreover, as there
is no information on the record of this review that demonstrates that
this rate is not appropriately used as adverse facts available, we
determine that this rate has relevance.
As the Third AR Final Results margin is both reliable and relevant,
we find that it has probative value. As a result, the Department
determines that the Third AR Final Results margin is corroborated for
the purposes of this administrative review and may reasonably be
applied to Shanghai Bloom. Because these are preliminary results of
review, the Department will consider all margins on the record at the
time of the final results of review for the purpose of determining the
most appropriate final margin for Shanghai Bloom. See Preliminary
Determination of Sales at Less Than Fair Value: Solid Fertilizer Grade
Ammonium Nitrate From the Russian Federation, 65 FR 1139 (January 7,
2000).
Preliminary Results of Review
We preliminarily determine that the following margin exists during
the period December 1, 2005, through June 30, 2006:
Honey from the PRC
Shanghai Bloom...................................... 212.39
------------------------------------------------------------------------
We will disclose our analysis to parties to these proceedings
within five days of the date of publication of this notice. Any
interested party may request a hearing within 30 days of publication of
this notice.
Interested parties who wish to request a hearing or to participate
if one is requested, must submit a written request to the Assistant
Secretary for Import Administration within 30 days of the date of
publication of this notice. Requests should contain: (1) the party's
name, address, and telephone number; (2) the number of participants;
and (3) a list of issues to be discussed. See 19 CFR 351.310(c).
Issues raised in the hearing will be limited to those raised in
case and rebuttal briefs. Case briefs from interested parties may be
submitted not later than 30 days of the date of publication of this
notice, pursuant to 19 CFR 351.309(c). Rebuttal briefs, limited to
issues raised in the case briefs, will be due five days later, pursuant
to 19 CFR 351.309(d). Parties who submit case or rebuttal briefs in
this proceeding are requested to submit with each argument (1) a
statement of the issue and (2) a brief summary of the argument. Parties
are also encouraged to provide a summary of the arguments not to exceed
five pages and a table of statutes, regulations, and cases cited.
The Department will issue the final results of this review,
including the results of its analysis of issues raised in any such
written briefs or at the hearing, if held, not later than 120 days
after the date of publication of this notice.
Assessment Rates
Pursuant to 19 CFR 351.212(b), the Department will determine, and
CBP shall assess, antidumping duties on all appropriate entries. The
Department will issue appropriate assessment instructions directly to
CBP within 15 days of publication of the final results of this review.
We will instruct CBP to assess antidumping duties on all appropriate
entries covered by this review if any assessment rate calculated in the
final results of this review is above de minimis. The final results of
this review shall be the basis for the assessment of antidumping duties
on entries of merchandise covered by the final results of this review
and for future deposits of estimated duties, where applicable.
Cash Deposit Requirements
The following cash deposit requirements will be effective upon
publication of the final results of this new shipper review for all
shipments of the subject merchandise 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: (1) the cash deposit
rate will be established in the final results of this review (except,
if the rate is zero or de minimis, i.e., less than 0.5 percent, no cash
deposit will be required for that company); (2) for previously
investigated or reviewed PRC and non-PRC exporters not listed above
that have separate rates, the cash deposit rate will continue to be the
exporter-specific rate published for the most recent period; (3) for
all PRC exporters of subject merchandise which have not been found to
be entitled to a separate rate, the cash deposit rate will be the PRC-
wide rate of 212.39 percent; and (4) for all non-PRC exporters of
subject merchandise which have not received their own rate, the cash
deposit rate will be the rate applicable to the PRC exporters that
supplied that non-PRC exporter. 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 serves as a preliminary reminder to importers of their
responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
This new shipper review and notice are in accordance with sections
751(a)(1), 751(a)(2)(B), and 777(i) of the Act and 19 CFR 351.213 and
351.214.
Dated: June 26, 2007.
Joseph A. Spetrini,
Deputy Assistant Secretary for Import Administration.
[FR Doc. E7-12891 Filed 7-2-03; 8:45 am]
BILLING CODE 3510-DS-S