Certain Frozen Warmwater Shrimp from Brazil: Final Results and Partial Rescission of Antidumping Duty Administrative Review, 52061-52065 [E7-18009]
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Federal Register / Vol. 72, No. 176 / Wednesday, September 12, 2007 / Notices
and NSIL Exports Limited of India on
AFA
12. Whether to Assess at the
Antidumping Rate of the Producer
Where a Producer Sells through an
Exporter
[FR Doc. E7–18006 Filed 9–11–07; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–351–838]
Certain Frozen Warmwater Shrimp
from Brazil: Final Results and Partial
Rescission of Antidumping Duty
Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: On March 9, 2007, the
Department of Commerce (the
Department) published the preliminary
results of the administrative review of
the antidumping duty order on certain
frozen warmwater shrimp (shrimp) from
Brazil. This review covers 11 producers/
exporters of the subject merchandise to
the United States. The period of review
(POR) is August 4, 2004, through
January 31, 2006. We are rescinding the
review with respect to three companies.
One company was inadvertently
omitted from the list of companies for
which the administrative review was
rescinded in July 2006, and the other
two companies were duplicate names
for a company for which the
administrative review was also
rescinded in July 2006.
Based on our analysis of the
comments received, we have made
certain changes to the margin
calculations. Therefore, the final results
differ from the preliminary results. The
final weighted–average dumping
margins for the reviewed firms are listed
below in the section entitled ‘‘Final
Results of Review.’’
AGENCY:
EFFECTIVE DATE:
September 12, 2007.
Kate
Johnson or Rebecca Trainor, AD/CVD
Operations, Office 2, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC, 20230;
telephone (202) 482–4929 and (202)
482–4007, respectively.
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FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
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Background
This review covers 11 producers/
exporters.1 The respondents which the
Department selected for individual
review are Aquatica Maricultura do
Brasil Ltda (‘‘Aquatica’’) and Comercio
de Pescado Aracatiense Ltda.
(‘‘Compescal’’). The respondents which
were not selected for individual review
are listed in the ‘‘Final Results of
Review’’ section of this notice. On
March 9, 2007, the Department
published in the Federal Register the
preliminary results of administrative
review of the antidumping duty order
on shrimp from Brazil. See Certain
Frozen Warmwater Shrimp from Brazil:
Preliminary Results and Partial
Rescission of Antidumping Duty
Administrative Review, 72 FR 10680
(March 9, 2007) (Preliminary Results).
We invited parties to comment on our
preliminary results of review. On April
23, 2007, we received case briefs from
the mandatory respondents (i.e.,
Aquatica and Compescal) and Valenca
¸
da Bahia Maricultura (Valenca), a
¸
respondent which was not selected for
individual review. On May 7, we
received a rebuttal brief from the
petitioner (i.e., the Ad Hoc Shrimp
Trade Action Committee). On May 31,
2007, we held a hearing at the request
of Aquatica and Compescal.
The Department has conducted this
administrative review in accordance
with section 751 of the Tariff Act of
1930, as amended (the Act).
Scope of the Order
The scope of this order includes
certain frozen warmwater shrimp and
prawns, whether wild–caught (ocean
harvested) or farm–raised (produced by
aquaculture), head–on or head–off,
shell–on or peeled, tail–on or tail–off,2
deveined or not deveined, cooked or
raw, or otherwise processed in frozen
form.
The frozen warmwater shrimp and
prawn products included in the scope of
this order, regardless of definitions in
the Harmonized Tariff Schedule of the
United States (HTSUS), are products
which are processed from warmwater
shrimp and prawns through freezing
and which are sold in any count size.
The products described above may be
processed from any species of
warmwater shrimp and prawns.
Warmwater shrimp and prawns are
generally classified in, but are not
limited to, the Penaeidae family. Some
1 This figure does not include those companies
for which the Department is rescinding the
administrative review.
2 ‘‘Tails’’ in this context means the tail fan, which
includes the telson and the uropods.
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examples of the farmed and wild–
caught warmwater species include, but
are not limited to, whiteleg shrimp
(Penaeus vannemei), banana prawn
(Penaeus merguiensis), fleshy prawn
(Penaeus chinensis), giant river prawn
(Macrobrachium rosenbergii), giant tiger
prawn (Penaeus monodon), redspotted
shrimp (Penaeus brasiliensis), southern
brown shrimp (Penaeus subtilis),
southern pink shrimp (Penaeus
notialis), southern rough shrimp
(Trachypenaeus curvirostris), southern
white shrimp (Penaeus schmitti), blue
shrimp (Penaeus stylirostris), western
white shrimp (Penaeus occidentalis),
and Indian white prawn (Penaeus
indicus).
Frozen shrimp and prawns that are
packed with marinade, spices or sauce
are included in the scope of this order.
In addition, food preparations, which
are not ‘‘prepared meals,’’ that contain
more than 20 percent by weight of
shrimp or prawn are also included in
the scope of this order.
Excluded from the scope are: 1)
breaded shrimp and prawns (HTSUS
subheading 1605.20.10.20); 2) shrimp
and prawns generally classified in the
Pandalidae family and commonly
referred to as coldwater shrimp, in any
state of processing; 3) fresh shrimp and
prawns whether shell–on or peeled
(HTSUS subheadings 0306.23.00.20 and
0306.23.00.40); 4) shrimp and prawns in
prepared meals (HTSUS subheading
1605.20.05.10); 5) dried shrimp and
prawns; 6) canned warmwater shrimp
and prawns (HTSUS subheading
1605.20.10.40); 7) certain dusted
shrimp; and 8) certain battered shrimp.
Dusted shrimp is a shrimp–based
product: 1) that is produced from fresh
(or thawed–from-frozen) and peeled
shrimp; 2) to which a ‘‘dusting’’ layer of
rice or wheat flour of at least 95 percent
purity has been applied; 3) with the
entire surface of the shrimp flesh
thoroughly and evenly coated with the
flour; 4) with the non–shrimp content of
the end product constituting between
four and 10 percent of the product’s
total weight after being dusted, but prior
to being frozen; and 5) that is subjected
to IQF freezing immediately after
application of the dusting layer.
Battered shrimp is a shrimp–based
product that, when dusted in
accordance with the definition of
dusting above, is coated with a wet
viscous layer containing egg and/or
milk, and par–fried.
The products covered by this order
are currently classified under the
following HTSUS subheadings:
0306.13.00.03, 0306.13.00.06,
0306.13.00.09, 0306.13.00.12,
0306.13.00.15, 0306.13.00.18,
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0306.13.00.21, 0306.13.00.24,
0306.13.00.27, 0306.13.00.40,
1605.20.10.10, and 1605.20.10.30. These
HTSUS subheadings are provided for
convenience and for customs purposes
only and are not dispositive, but rather
the written description of the scope of
this order is dispositive.
Period of Review
The POR is August 4, 2004, through
January 31, 2006.
Partial Rescission of Review
In the Preliminary Results, we
preliminarily rescinded this review with
respect to Artico, Marine Maricultura do
Nordeste SA, and Marine Maricultura
Nordeste SA.
Artico was inadvertently omitted from
the list of companies for which the
administrative review was rescinded in
July 2006. Artico has the same address
as Ortico, which was included in our
earlier rescission notice. Accordingly,
we consider Artico and Ortico to be the
same company.
In addition, as a result of additional
research, we confirmed that Marine
Maricultura do Nordeste SA, Marine
Maricultura do Nordeste, and Marine
Maricultura Nordeste SA are, in fact, the
same company, and that the correct
company name is Marine Maricultura
do Nordeste SA, which is no longer in
business. We rescinded the
administrative review with respect to
Marine Maricultura do Nordeste in July
2006, as a result of the petitioner’s
timely withdrawal of the request for
review of this company.
For these reasons, we are rescinding
this review with respect to Artico,
Marine Maricultura do Nordeste SA,
and Marine Maricultura Nordeste SA.
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Facts Available
In the Preliminary Results, we
determined that, in accordance with
section 776(a)(2)(A) of the Act, the use
of facts available was appropriate as the
basis for the dumping margins for SM
Pescados Industria Comercio E
Exportacao Ltda. (SM Pescados) and
Valenca da Bahia Maricultura S.A.
(Valenca). See Preliminary Results at
10682–83.
Section 776(a) of the Act provides that
the Department will apply ‘‘facts
otherwise available’’ if, inter alia,
necessary information is not available
on the record or an interested party: 1)
withholds information that has been
requested by the Department; 2) fails to
provide such information within the
deadlines established, or in the form or
manner requested by the Department; 3)
significantly impedes a proceeding; or
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4) provides such information, but the
information cannot be verified.
In April 2006, the Department
requested that all companies subject to
review respond to the Department’s
quantity and value (Q&V) questionnaire
for purposes of mandatory respondent
selection. The original deadline to file a
response was April 28, 2006. Because
numerous companies did not respond to
this initial request for information, in
May 2006 the Department issued letters
to these companies affording them a
second opportunity to submit a
response to the Department’s Q&V
questionnaire. However, both SM
Pescados and Valenca failed to respond
to the Department’s second request for
Q&V data. By failing to respond to the
Department’s Q&V questionnaire, these
companies withheld requested
information and significantly impeded
the proceeding. Thus, pursuant to
sections 776(a)(2)(A) and (C) of the Act,
because these companies did not
respond to the Department’s
questionnaire, the Department
preliminarily found that the use of total
facts available was warranted. See
Preliminary Results at 10682–83.
By failing to respond to the
Department’s requests, these companies
withheld requested information and
significantly impeded the proceeding.
Therefore, as in the Preliminary Results,
the Department finds that the use of
total facts available for SM Pescados and
Valenca is appropriate for purposes of
the final results, pursuant to sections
776(a)(2)(A) and (C) of the Act.
Application of Adverse Facts Available
In selecting from among the facts
otherwise available, section 776(b) of
the Act authorizes the Department to
use an adverse inference if the
Department finds that an interested
party failed to cooperate by not acting
to the best of its ability to comply with
the request for information. See, e.g.,
Notice of Final Results of Antidumping
Duty Administrative Review: Stainless
Steel Bar from India, 70 FR 54023,
54025–26 (Sept. 13, 2005); see also
Notice of Final Determination of Sales
at Less Than Fair Value and Final
Negative Critical Circumstances: Carbon
and Certain Alloy Steel Wire Rod from
Brazil, 67 FR 55792, 55794–96 (Aug. 30,
2002). 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 accompanying
the Uruguay Round Agreements Act,
H.R. Rep. No. 103–316, Vol. 1, at 870
(1994). Furthermore, ‘‘affirmative
evidence of bad faith on the part of a
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respondent is not required before the
Department may make an adverse
inference.’’ See Antidumping Duties;
Countervailing Duties; Final Rule, 62 FR
27296, 27340 (May 19, 1997). See also,
Nippon Steel Corp. v. United States, 337
F.3d 1373, 1382 (Fed. Cir. 2003)
(Nippon). We find that SM Pescados and
Valenca did not act to the best of their
abilities in this proceeding, within the
meaning of section 776(b) of the Act,
because they failed to respond to the
Department’s requests for information.
Therefore, an adverse inference is
warranted in selecting the facts
otherwise available. See Nippon, 337 F.
3d at 1382–83.
In the Preliminary Results, we
assigned to the uncooperative
companies an adverse facts available
(AFA) rate of 349 percent, which is the
highest rate alleged in the petition, and
which we were able to corroborate
against the preliminary transaction–
specific margins calculated for the
mandatory respondents in this
administrative review. However, given
the changes made to the margin
calculations for the mandatory
respondents since the Preliminary
Results, we are no longer able to
corroborate the petition margins using
this method, as discussed below.
Therefore, for the final results, we have
applied an AFA margin of 67.80
percent, which is the highest rate
calculated for any respondent in a prior
segment of the proceeding (i.e., the less–
than-fair–value (LTFV) investigation).
The Court of International Trade (CIT)
and the Court of Appeals for the Federal
Circuit have consistently upheld this
approach. See 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
an LTFV investigation).
Section 776(b) of the Act provides
that the Department may use as AFA
information derived from: 1) the
petition; 2) the final determination in
the investigation; 3) any previous
review; or 4) any other information
placed on the record. The Department’s
practice, when selecting an AFA rate
from among the possible sources of
information, has been to ensure that the
margin is sufficiently adverse ‘‘as to
effectuate the statutory purposes of the
AFA rule to induce respondents to
provide the Department with complete
and accurate information in a timely
manner.’’ See, e.g., Certain Steel
Concrete Reinforcing Bars from Turkey;
Final Results and Rescission of
Antidumping Duty Administrative
Review in Part, 71 FR 65082, 65084
(November 7, 2006).
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In selecting an appropriate AFA rate,
the Department considered: 1) the rates
alleged in the petition (see Notice of
Initiation of Antidumping Duty
Investigations: Certain Frozen and
Canned Warmwater Shrimp From
Brazil, Ecuador, India, Thailand, the
People’s Republic of China and the
Socialist Republic of Vietnam, 69 FR
3876, 3879 (January 27, 2004)); 2) the
rates calculated in the final
determination of the LTFV
investigation, which ranged from 9.69 to
67.80 percent (see Notice of Amended
Final Determination of Sales at Less
Than Fair Value and Antidumping Duty
Order: Certain Frozen Warmwater
Shrimp from Brazil, 70 FR 5143
(February 1, 2005) (LTFV Amended
Final Determination and Order)); and 3)
the rates calculated in the current
administrative review. As discussed
further below, we no longer find that the
rates alleged in the petition have
probative value for purposes of this
review. In addition, we find that the
rates calculated for the respondents in
this review are not sufficiently high as
to effectuate the purpose of the facts
available rule (i.e., we do not find that
these rates are high enough to encourage
participation in future segments of this
proceeding in accordance with section
776(b) of the Act). Therefore, we have
assigned a rate of 67.80 percent as AFA,
which is the highest margin determined
for any respondent in any segment of
the proceeding (i.e., the LTFV
investigation).3 We consider the 67.80–
percent rate to be sufficiently high so as
to encourage participation in future
segments of this proceeding.
Corroboration
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Section 776(c) of the Act requires that
the Department corroborate, to the
extent practicable, secondary
information used as facts available from
independent sources reasonably at its
disposal. The Department’s regulations
provide that ‘‘corroborate’’ means that
the Department will satisfy itself that
the secondary information to be used
has probative value. See 19 CFR
351.308(d); see also Uruguay Round
Agreements Act, Statement of
Administrative Action, H.R. Doc. No.
103–316 at 870 (1994) (SAA). With
respect to consideration of the rates
alleged in the petition, information from
3 This margin was based on the rate we calculated
for respondent Norte Pesca S.A. in the preliminary
determination of the LTFV investigation, based on
information it submitted in its questionnaire
responses. Although this company withdrew from
the investigation after the preliminary
determination, this rate was used as the AFA rate
in the final determination. See LTFV Amended
Final Determination and Order.
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prior segments of the proceeding
constitutes secondary information and
to the extent practicable, the
Department will examine the reliability
and relevance of the information to be
used.
For purposes of the final results, we
did not use either of the two highest of
the three petition rates (i.e., 320 percent
and 349 percent) because we were
unable to corroborate them with
independent information reasonably at
our disposal, i.e., the transaction–
specific margins in the current
administrative review. We did not use
the remaining petition rate (i.e., 32
percent) because it was lower than the
selected AFA rate, and as such would
not accomplish the objectives of AFA,
stated above. Moreover, we have an
alternative that we find to be
sufficiently adverse to effectuate the
purpose of the AFA provision of the
statute.
The reliability of the selected AFA
rate was determined by the calculation
of the margin for Norte Pesca, as
published in the LTFV Amended Final
Determination and Order. With respect
to corroboration of a rate calculated in
a segment of a proceeding, we note that,
unlike other types of information, such
as input costs or selling expenses, there
are no independent sources from which
the Department can derive dumping
margins. The only source for calculated
dumping margins is administrative
determinations. Thus, in an
administrative review, if the Department
chooses as total AFA a calculated
dumping margin from the current or a
prior segment of the proceeding, it is not
necessary to question the reliability of
the margin for that time period. See,
e.g., Anhydrous Sodium Metasilicate
from France: Preliminary Results of
Antidumping Duty Administrative
Review, 68 FR 44283, 44284 (July 28,
2003) and Anhydrous Sodium
Metasilicate from France: Final Results
of Antidumping Duty Administrative
Review, 68 FR 60080 (October 21, 2003)
(unchanged in final). Therefore, given
that we are using the highest margin
calculated for any respondent in any
segment of the proceeding, it is not
necessary to question the reliability of
this rate. The Department has received
no information to date that warrants
revisiting the issue of the reliability of
the rate calculation itself. However,
because neither SM Pescados nor
Valenca submitted information to the
¸
Department or participated in a
previous segment of this proceeding, we
do not have information specific to the
two companies to consider in
determining whether the 67.80–percent
margin is relevant to each of them.
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Therefore, to determine whether the
67.80–percent margin is relevant in this
administrative review, we compared
this rate to the transaction–specific rates
calculated for each mandatory
respondent in this review. Based on this
comparison, we find that the selected
AFA rate is relevant because it fell
within the range of individual
transaction margins calculated for one
of the mandatory respondents. See
Memorandum to The File from Kate
Johnson and Rebecca Trainor entitled
‘‘Corroboration of Adverse Facts
Available Rate for the Final Results in
the 2004–2006 Antidumping Duty
Administrative Review of Certain
Frozen Warmwater Shrimp from
Brazil,’’ dated September 5, 2007. See
also Notice of Preliminary Results of
Antidumping Duty Administrative
Review; Partial Rescission and
Postponement of Final Results: Certain
Softwood Lumber Products from
Canada, 71 FR 33964, 33968 (June 12,
2006).
The Department will, however,
consider information reasonably at its
disposal as to whether there are
circumstances that would render a
margin inappropriate. Where
circumstances indicate that the selected
margin is not appropriate as AFA, the
Department may disregard the margin
and determine an appropriate margin.
See, e.g., Fresh Cut Flowers from
Mexico; Final Results of Antidumping
Duty Administrative Review, 61 FR
6812, 6814 (February 22, 1996) (where
the Department disregarded the highest
calculated margin as AFA because the
margin was based on a company’s
uncharacteristic business expense
resulting in an unusually high margin).
For the instant review, we examined
whether any information on the record
would discredit the selected rate as
reasonable facts available and have
found none. Because we did not find
evidence indicating that the margin
selected as AFA in this review is not
appropriate, we have determined that
the highest margin calculated for any
respondent in any segment of the
proceeding (i.e., 67.80 percent) is
appropriate to use as AFA, and are
assigning this rate to SM Pescados and
Valenca in the final results of this
review.
Aquatica’s Affiliated Parties
Aquatica provided information
regarding the relationship between
Aquatica and its two affiliated
producers/exporters of subject
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merchandise at issue during the POR.4
After an analysis of this information, as
well as information obtained as a result
of additional research, we preliminarily
determined that, in accordance with 19
CFR 351.401(f), it is not appropriate to
collapse these affiliated entities for
purposes of this review because: 1) there
is no common ownership among the
companies; 2) no managerial employees
or board members of one firm are
associated with any of the other firms;
3) there is no sharing of sales
information, involvement in pricing and
production decisions, sharing of
facilities or employees, or significant
transactions between and among the
affiliated producers. Thus, there is no
potential for manipulation of price or
production if Aquatica and its affiliates
do not receive the same antidumping
duty rate. See Preliminary Results, 72
FR at 10682.
Since the Preliminary Results, no
party to this proceeding has commented
on this issue and we have found no
additional information that would
compel us to reverse our preliminary
finding. Thus, for purposes of these
final results, we continue to find that it
is not appropriate to collapse these
entities for purposes of this review.
Cost of Production
As discussed in the Preliminary
Results, we conducted an investigation
to determine whether Aquatica and
Compescal made third country or home
market sales, respectively, of the foreign
like product during the POR at prices
below their costs of production (COP)
within the meaning of section 773(b)(1)
of the Act. We performed the cost test
for these final results following the same
methodology as in the Preliminary
Results, except as discussed in the
Issues and Decision Memorandum
accompanying this notice (the Decision
Memo).
For both Compescal and Aquatica, we
found that 20 percent or more of
comparison market sales of a given
product during the reporting period
were at prices less than the weighted–
average COP for this period. Thus, we
determined that these below–cost sales
were made in ‘‘substantial quantities’’
within an extended period of time and
at prices which did not permit the
recovery of all costs within a reasonable
period of time in the normal course of
trade. See sections 773(b)(2)(B) - (D) of
the Act. Therefore, for purposes of these
final results, we found that both
respondents made below–cost sales not
in the ordinary course of trade during
the POR. Consequently, we disregarded
these sales and used the remaining sales
as the basis for determining normal
value pursuant to section 773(b)(1) of
the Act.
Analysis of Comments Received
All issues raised in the case briefs by
parties to this administrative review,
and to which we have responded, are
listed in the Appendix to this notice and
addressed in the Decision Memo, which
is adopted by this notice. Parties can
find a complete discussion of all issues
raised in this review and the
corresponding recommendations in this
public memorandum, which is on file in
the Central Records Unit, room B–099,
of the main Department building.
In addition, a complete version of the
Decision Memo can be accessed directly
on the Web at https://ia.ita.doc.gov/frn/.
The paper copy and electronic version
of the Decision Memo are identical in
content.
Changes Since the Preliminary Results
Based on our analysis of the
comments received, we have made
certain changes in the margin
calculations. These changes are
discussed in the relevant sections of the
Decision Memo.
Final Results of Review
We determine that the following
weighted–average margin percentages
exist for the period August 4, 2004,
through January 31, 2006:
Manufacturer/Exporter
Percent Margin
Aquatica Maricultura do Brasil Ltda./Aquafeed do Brasil Ltda. ................................................................................
Compescal - Comercio de Pescado Aracatiense Ltda. ............................................................................................
Review–Specific Average Rate Applicable to the Following Companies:5.
4.62
15.41
5 This rate is based on the weighted average of the margins calculated for those companies selected for individual review, excluding de minimis margins or margins based entirely on AFA.
Manufacturer/Exporter
Percent Margin
Amazonas Industrias Alimenticias - AMASA .............................................................................................................
Bramex Brasil Mercantil S.A. .....................................................................................................................................
Guy Vautrin Importacao & Exportacao ......................................................................................................................
ITA Fish–S.W.F. Importacao E Exportacao Ltda. .....................................................................................................
JK Pesca Ltda. ..........................................................................................................................................................
Lusomar Maricultura Ltda. .........................................................................................................................................
Santa Lavinia Comercio E Exportacao Ltda. ............................................................................................................
AFA Rate Applicable to the Following Companies:.
Manufacturer/Exporter
Percent Margin
SM Pescados Industria Comercio E Exportacao Ltda. .............................................................................................
Valenca da Bahia Maricultura SA .............................................................................................................................
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Assessment
The Department shall determine, and
Customs and Border Protection (CBP)
4 Based on information submitted in Aquatica’s
questionnaire responses, as well as information
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6.96
6.96
6.96
6.96
6.96
6.96
6.96
67.80
67.80
shall assess, antidumping duties on all
appropriate entries.
Pursuant to 19 CFR 351.212(b)(1), for
Aquatica and Compescal, because they
did not report the entered value of their
U.S. sales, we have calculated importer–
specific per–unit duty assessment rates
by aggregating the total amount of
obtained at verification, we have accepted
Aquatica’s claim that its operations are intertwined
with those of Aquafeed such that they essentially
function as one company.
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jlentini on PROD1PC65 with NOTICES
antidumping duties calculated for the
examined sales and dividing this
amount by the total quantity of those
sales. To determine whether the duty
assessment rates are de minimis, in
accordance with the requirement set
forth in 19 CFR 351.106(c)(2), we have
calculated importer–specific ad valorem
ratios based on the estimated entered
value. For the responsive companies
which were not selected for individual
review, we have calculated an
assessment rate based on the weighted–
average of the cash deposit rates
calculated for the companies selected
for individual review excluding any
which are de minimis or determined
entirely on AFA.
We will instruct CBP to assess
antidumping duties on all appropriate
entries covered by this review if any
importer–specific assessment rate
calculated in the final results of this
review is above de minimis (i.e., at or
above 0.50 percent). Pursuant to 19 CFR
351.106(c)(2), we will instruct CBP to
liquidate without regard to antidumping
duties any entries for which the
assessment rate is de minimis (i.e., less
than 0.50 percent). See 19 CFR
351.106(c)(1). The Department intends
to issue assessment instructions to CBP
15 days after the date of publication of
these final results of review.
The Department clarified its
‘‘automatic assessment’’ regulation on
May 6, 2003. See Antidumping and
Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68
FR 23954 (May 6, 2003) (Assessment
Policy Notice). This clarification will
apply to entries of subject merchandise
during the POR produced by companies
included in these final results of review
for which the reviewed companies did
not know that the merchandise they
sold to the intermediary (e.g., a reseller,
trading company, or exporter) was
destined for the United States. In such
instances, we will instruct CBP to
liquidate unreviewed entries at the ‘‘All
Others’’ rate established in the LTFV
investigation if there is no rate for the
intermediary involved in the
transaction. See Assessment Policy
Notice for a full discussion of this
clarification.
Cash Deposit Requirements
Further, the following deposit
requirements will be effective for all
shipments of shrimp from Brazil
entered, or withdrawn from warehouse,
for consumption on or after the
publication date of the final results of
this administrative review, as provided
for by section 751(a)(2)(C) of the Act: 1)
the cash deposit rates for the reviewed
companies will be the rates shown
VerDate Aug<31>2005
18:43 Sep 11, 2007
Jkt 211001
above, except if the rate is less than 0.50
percent, de minimis within the meaning
of 19 CFR 351.106(c)(1), the cash
deposit will be zero; 2) for previously
investigated companies not listed above,
the cash deposit rate will continue to be
the company–specific rate published for
the most recent period; 3) if the exporter
is not a firm covered in this review, or
the LTFV investigation, but the
manufacturer is, the cash deposit rate
will be the rate established for the most
recent period for the manufacturer of
the merchandise; and 4) the cash
deposit rate for all other manufacturers
or exporters will continue to be 7.05
percent, the ‘‘All Others’’ rate
established in the LTFV investigation.
These deposit requirements shall
remain in effect until further notice.
Notification to Importers
This notice serves as a final 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.
Notification to Interested Parties
This notice serves as the only
reminder to parties subject to
administrative protective order (APO) of
their responsibility concerning the
disposition of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
written notification of return/
destruction of APO materials or
conversion to judicial protective order is
hereby requested. Failure to comply
with the regulations and the terms of an
APO is a sanctionable violation.
We are issuing and publishing these
final results of review in accordance
with sections 751(a)(1) and 777(i)(1) of
the Act and 19 CFR 351.221(b)(5).
Dated: September 5, 2007.
David M. Spooner,
Assistant Secretary for Import
Administration.
Appendix Issues in Decision
Memorandum
General Issues
1. Offset for Productivity Losses from
Viral Infection
2. Zeroing Negative Margins
PO 00000
Frm 00021
Fmt 4703
Sfmt 4703
52065
Company–Specific Issues
Compescal:
3. Calculation of Offset for Losses from
Viral Infection
4. Calculation of Constructed Value
Profit
5. Depreciation on Fixed Asset
Revaluations
6. Treatment of Prime Quality Shrimp
Aquatica:
7. Adjustment Methodology for Losses
from Viral Infection
8. Aquatica’s Shrimp Cost Allocation
Methodology
9. Changes in Inventories in Cost
Calculation
10. Purchases from Affiliates
11. CV Profit and Selling Rates
12. Foreign Exchange Loss
13. Treatment of Broken Shrimp
Valenca:
¸
14. Adverse Facts Available Rate
Assigned to Valenca da Bahia
Maricultura S.A.
15. Corroboration of the Adverse Facts
Available Rate Assigned to Valenca da
Bahia Maricultura S.A.
[FR Doc. E7–18009 Filed 9–11–07; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–549–822]
Certain Frozen Warmwater Shrimp
from Thailand: Final Results and Final
Partial Rescission of Antidumping
Duty Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: On March 9, 2007, the
Department of Commerce (the
Department) published the preliminary
results of the administrative review of
the antidumping duty order on certain
frozen warmwater shrimp (shrimp) from
Thailand. This review covers 24
producers/exporters of the subject
merchandise to the United States. The
period of review (POR) is August 4,
2004, through January 31, 2006. We are
rescinding the review with respect to
five companies because these
companies had no reportable shipments
of subject merchandise during the POR.
Based on our analysis of the
comments received, we have made
certain changes in the margin
calculations. Therefore, the final results
differ from the preliminary results. The
final weighted–average dumping
margins for the reviewed firms are listed
AGENCY:
E:\FR\FM\12SEN1.SGM
12SEN1
Agencies
[Federal Register Volume 72, Number 176 (Wednesday, September 12, 2007)]
[Notices]
[Pages 52061-52065]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-18009]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-351-838]
Certain Frozen Warmwater Shrimp from Brazil: Final Results and
Partial Rescission of Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On March 9, 2007, the Department of Commerce (the Department)
published the preliminary results of the administrative review of the
antidumping duty order on certain frozen warmwater shrimp (shrimp) from
Brazil. This review covers 11 producers/exporters of the subject
merchandise to the United States. The period of review (POR) is August
4, 2004, through January 31, 2006. We are rescinding the review with
respect to three companies. One company was inadvertently omitted from
the list of companies for which the administrative review was rescinded
in July 2006, and the other two companies were duplicate names for a
company for which the administrative review was also rescinded in July
2006.
Based on our analysis of the comments received, we have made
certain changes to the margin calculations. Therefore, the final
results differ from the preliminary results. The final weighted-average
dumping margins for the reviewed firms are listed below in the section
entitled ``Final Results of Review.''
EFFECTIVE DATE: September 12, 2007.
FOR FURTHER INFORMATION CONTACT: Kate Johnson or Rebecca Trainor, AD/
CVD Operations, Office 2, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC, 20230; telephone (202) 482-
4929 and (202) 482-4007, respectively.
SUPPLEMENTARY INFORMATION:
Background
This review covers 11 producers/exporters.\1\ The respondents which
the Department selected for individual review are Aquatica Maricultura
do Brasil Ltda (``Aquatica'') and Comercio de Pescado Aracatiense Ltda.
(``Compescal''). The respondents which were not selected for individual
review are listed in the ``Final Results of Review'' section of this
notice. On March 9, 2007, the Department published in the Federal
Register the preliminary results of administrative review of the
antidumping duty order on shrimp from Brazil. See Certain Frozen
Warmwater Shrimp from Brazil: Preliminary Results and Partial
Rescission of Antidumping Duty Administrative Review, 72 FR 10680
(March 9, 2007) (Preliminary Results).
---------------------------------------------------------------------------
\1\ This figure does not include those companies for which the
Department is rescinding the administrative review.
---------------------------------------------------------------------------
We invited parties to comment on our preliminary results of review.
On April 23, 2007, we received case briefs from the mandatory
respondents (i.e., Aquatica and Compescal) and Valen[ccedil]a da Bahia
Maricultura (Valen[ccedil]a), a respondent which was not selected for
individual review. On May 7, we received a rebuttal brief from the
petitioner (i.e., the Ad Hoc Shrimp Trade Action Committee). On May 31,
2007, we held a hearing at the request of Aquatica and Compescal.
The Department has conducted this administrative review in
accordance with section 751 of the Tariff Act of 1930, as amended (the
Act).
Scope of the Order
The scope of this order includes certain frozen warmwater shrimp
and prawns, whether wild-caught (ocean harvested) or farm-raised
(produced by aquaculture), head-on or head-off, shell-on or peeled,
tail-on or tail-off,\2\ deveined or not deveined, cooked or raw, or
otherwise processed in frozen form.
---------------------------------------------------------------------------
\2\ ``Tails'' in this context means the tail fan, which includes
the telson and the uropods.
---------------------------------------------------------------------------
The frozen warmwater shrimp and prawn products included in the
scope of this order, regardless of definitions in the Harmonized Tariff
Schedule of the United States (HTSUS), are products which are processed
from warmwater shrimp and prawns through freezing and which are sold in
any count size.
The products described above may be processed from any species of
warmwater shrimp and prawns. Warmwater shrimp and prawns are generally
classified in, but are not limited to, the Penaeidae family. Some
examples of the farmed and wild-caught warmwater species include, but
are not limited to, whiteleg shrimp (Penaeus vannemei), banana prawn
(Penaeus merguiensis), fleshy prawn (Penaeus chinensis), giant river
prawn (Macrobrachium rosenbergii), giant tiger prawn (Penaeus monodon),
redspotted shrimp (Penaeus brasiliensis), southern brown shrimp
(Penaeus subtilis), southern pink shrimp (Penaeus notialis), southern
rough shrimp (Trachypenaeus curvirostris), southern white shrimp
(Penaeus schmitti), blue shrimp (Penaeus stylirostris), western white
shrimp (Penaeus occidentalis), and Indian white prawn (Penaeus
indicus).
Frozen shrimp and prawns that are packed with marinade, spices or
sauce are included in the scope of this order. In addition, food
preparations, which are not ``prepared meals,'' that contain more than
20 percent by weight of shrimp or prawn are also included in the scope
of this order.
Excluded from the scope are: 1) breaded shrimp and prawns (HTSUS
subheading 1605.20.10.20); 2) shrimp and prawns generally classified in
the Pandalidae family and commonly referred to as coldwater shrimp, in
any state of processing; 3) fresh shrimp and prawns whether shell-on or
peeled (HTSUS subheadings 0306.23.00.20 and 0306.23.00.40); 4) shrimp
and prawns in prepared meals (HTSUS subheading 1605.20.05.10); 5) dried
shrimp and prawns; 6) canned warmwater shrimp and prawns (HTSUS
subheading 1605.20.10.40); 7) certain dusted shrimp; and 8) certain
battered shrimp. Dusted shrimp is a shrimp-based product: 1) that is
produced from fresh (or thawed-from-frozen) and peeled shrimp; 2) to
which a ``dusting'' layer of rice or wheat flour of at least 95 percent
purity has been applied; 3) with the entire surface of the shrimp flesh
thoroughly and evenly coated with the flour; 4) with the non-shrimp
content of the end product constituting between four and 10 percent of
the product's total weight after being dusted, but prior to being
frozen; and 5) that is subjected to IQF freezing immediately after
application of the dusting layer. Battered shrimp is a shrimp-based
product that, when dusted in accordance with the definition of dusting
above, is coated with a wet viscous layer containing egg and/or milk,
and par-fried.
The products covered by this order are currently classified under
the following HTSUS subheadings: 0306.13.00.03, 0306.13.00.06,
0306.13.00.09, 0306.13.00.12, 0306.13.00.15, 0306.13.00.18,
[[Page 52062]]
0306.13.00.21, 0306.13.00.24, 0306.13.00.27, 0306.13.00.40,
1605.20.10.10, and 1605.20.10.30. These HTSUS subheadings are provided
for convenience and for customs purposes only and are not dispositive,
but rather the written description of the scope of this order is
dispositive.
Period of Review
The POR is August 4, 2004, through January 31, 2006.
Partial Rescission of Review
In the Preliminary Results, we preliminarily rescinded this review
with respect to Artico, Marine Maricultura do Nordeste SA, and Marine
Maricultura Nordeste SA.
Artico was inadvertently omitted from the list of companies for
which the administrative review was rescinded in July 2006. Artico has
the same address as Ortico, which was included in our earlier
rescission notice. Accordingly, we consider Artico and Ortico to be the
same company.
In addition, as a result of additional research, we confirmed that
Marine Maricultura do Nordeste SA, Marine Maricultura do Nordeste, and
Marine Maricultura Nordeste SA are, in fact, the same company, and that
the correct company name is Marine Maricultura do Nordeste SA, which is
no longer in business. We rescinded the administrative review with
respect to Marine Maricultura do Nordeste in July 2006, as a result of
the petitioner's timely withdrawal of the request for review of this
company.
For these reasons, we are rescinding this review with respect to
Artico, Marine Maricultura do Nordeste SA, and Marine Maricultura
Nordeste SA.
Facts Available
In the Preliminary Results, we determined that, in accordance with
section 776(a)(2)(A) of the Act, the use of facts available was
appropriate as the basis for the dumping margins for SM Pescados
Industria Comercio E Exportacao Ltda. (SM Pescados) and Valenca da
Bahia Maricultura S.A. (Valenca). See Preliminary Results at 10682-83.
Section 776(a) of the Act provides that the Department will apply
``facts otherwise available'' if, inter alia, necessary information is
not available on the record or an interested party: 1) withholds
information that has been requested by the Department; 2) fails to
provide such information within the deadlines established, or in the
form or manner requested by the Department; 3) significantly impedes a
proceeding; or 4) provides such information, but the information cannot
be verified.
In April 2006, the Department requested that all companies subject
to review respond to the Department's quantity and value (Q&V)
questionnaire for purposes of mandatory respondent selection. The
original deadline to file a response was April 28, 2006. Because
numerous companies did not respond to this initial request for
information, in May 2006 the Department issued letters to these
companies affording them a second opportunity to submit a response to
the Department's Q&V questionnaire. However, both SM Pescados and
Valenca failed to respond to the Department's second request for Q&V
data. By failing to respond to the Department's Q&V questionnaire,
these companies withheld requested information and significantly
impeded the proceeding. Thus, pursuant to sections 776(a)(2)(A) and (C)
of the Act, because these companies did not respond to the Department's
questionnaire, the Department preliminarily found that the use of total
facts available was warranted. See Preliminary Results at 10682-83.
By failing to respond to the Department's requests, these companies
withheld requested information and significantly impeded the
proceeding. Therefore, as in the Preliminary Results, the Department
finds that the use of total facts available for SM Pescados and Valenca
is appropriate for purposes of the final results, pursuant to sections
776(a)(2)(A) and (C) of the Act.
Application of Adverse Facts Available
In selecting from among the facts otherwise available, section
776(b) of the Act authorizes the Department to use an adverse inference
if the Department finds that an interested party failed to cooperate by
not acting to the best of its ability to comply with the request for
information. See, e.g., Notice of Final Results of Antidumping Duty
Administrative Review: Stainless Steel Bar from India, 70 FR 54023,
54025-26 (Sept. 13, 2005); see also Notice of Final Determination of
Sales at Less Than Fair Value and Final Negative Critical
Circumstances: Carbon and Certain Alloy Steel Wire Rod from Brazil, 67
FR 55792, 55794-96 (Aug. 30, 2002). 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 accompanying the Uruguay Round Agreements Act,
H.R. Rep. No. 103-316, Vol. 1, at 870 (1994). Furthermore,
``affirmative evidence of bad faith on the part of a respondent is not
required before the Department may make an adverse inference.'' See
Antidumping Duties; Countervailing Duties; Final Rule, 62 FR 27296,
27340 (May 19, 1997). See also, Nippon Steel Corp. v. United States,
337 F.3d 1373, 1382 (Fed. Cir. 2003) (Nippon). We find that SM Pescados
and Valenca did not act to the best of their abilities in this
proceeding, within the meaning of section 776(b) of the Act, because
they failed to respond to the Department's requests for information.
Therefore, an adverse inference is warranted in selecting the facts
otherwise available. See Nippon, 337 F. 3d at 1382-83.
In the Preliminary Results, we assigned to the uncooperative
companies an adverse facts available (AFA) rate of 349 percent, which
is the highest rate alleged in the petition, and which we were able to
corroborate against the preliminary transaction-specific margins
calculated for the mandatory respondents in this administrative review.
However, given the changes made to the margin calculations for the
mandatory respondents since the Preliminary Results, we are no longer
able to corroborate the petition margins using this method, as
discussed below. Therefore, for the final results, we have applied an
AFA margin of 67.80 percent, which is the highest rate calculated for
any respondent in a prior segment of the proceeding (i.e., the less-
than-fair-value (LTFV) investigation). The Court of International Trade
(CIT) and the Court of Appeals for the Federal Circuit have
consistently upheld this approach. See 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 an LTFV investigation).
Section 776(b) of the Act provides that the Department may use as
AFA information derived from: 1) the petition; 2) the final
determination in the investigation; 3) any previous review; or 4) any
other information placed on the record. The Department's practice, when
selecting an AFA rate from among the possible sources of information,
has been to ensure that the margin is sufficiently adverse ``as to
effectuate the statutory purposes of the AFA rule to induce respondents
to provide the Department with complete and accurate information in a
timely manner.'' See, e.g., Certain Steel Concrete Reinforcing Bars
from Turkey; Final Results and Rescission of Antidumping Duty
Administrative Review in Part, 71 FR 65082, 65084 (November 7, 2006).
[[Page 52063]]
In selecting an appropriate AFA rate, the Department considered: 1)
the rates alleged in the petition (see Notice of Initiation of
Antidumping Duty Investigations: Certain Frozen and Canned Warmwater
Shrimp From Brazil, Ecuador, India, Thailand, the People's Republic of
China and the Socialist Republic of Vietnam, 69 FR 3876, 3879 (January
27, 2004)); 2) the rates calculated in the final determination of the
LTFV investigation, which ranged from 9.69 to 67.80 percent (see Notice
of Amended Final Determination of Sales at Less Than Fair Value and
Antidumping Duty Order: Certain Frozen Warmwater Shrimp from Brazil, 70
FR 5143 (February 1, 2005) (LTFV Amended Final Determination and
Order)); and 3) the rates calculated in the current administrative
review. As discussed further below, we no longer find that the rates
alleged in the petition have probative value for purposes of this
review. In addition, we find that the rates calculated for the
respondents in this review are not sufficiently high as to effectuate
the purpose of the facts available rule (i.e., we do not find that
these rates are high enough to encourage participation in future
segments of this proceeding in accordance with section 776(b) of the
Act). Therefore, we have assigned a rate of 67.80 percent as AFA, which
is the highest margin determined for any respondent in any segment of
the proceeding (i.e., the LTFV investigation).\3\ We consider the
67.80-percent rate to be sufficiently high so as to encourage
participation in future segments of this proceeding.
---------------------------------------------------------------------------
\3\ This margin was based on the rate we calculated for
respondent Norte Pesca S.A. in the preliminary determination of the
LTFV investigation, based on information it submitted in its
questionnaire responses. Although this company withdrew from the
investigation after the preliminary determination, this rate was
used as the AFA rate in the final determination. See LTFV Amended
Final Determination and Order.
---------------------------------------------------------------------------
Corroboration
Section 776(c) of the Act requires that the Department corroborate,
to the extent practicable, secondary information used as facts
available from independent sources reasonably at its disposal. The
Department's regulations provide that ``corroborate'' means that the
Department will satisfy itself that the secondary information to be
used has probative value. See 19 CFR 351.308(d); see also Uruguay Round
Agreements Act, Statement of Administrative Action, H.R. Doc. No. 103-
316 at 870 (1994) (SAA). With respect to consideration of the rates
alleged in the petition, information from prior segments of the
proceeding constitutes secondary information and to the extent
practicable, the Department will examine the reliability and relevance
of the information to be used.
For purposes of the final results, we did not use either of the two
highest of the three petition rates (i.e., 320 percent and 349 percent)
because we were unable to corroborate them with independent information
reasonably at our disposal, i.e., the transaction-specific margins in
the current administrative review. We did not use the remaining
petition rate (i.e., 32 percent) because it was lower than the selected
AFA rate, and as such would not accomplish the objectives of AFA,
stated above. Moreover, we have an alternative that we find to be
sufficiently adverse to effectuate the purpose of the AFA provision of
the statute.
The reliability of the selected AFA rate was determined by the
calculation of the margin for Norte Pesca, as published in the LTFV
Amended Final Determination and Order. With respect to corroboration of
a rate calculated in a segment of a proceeding, we note that, unlike
other types of information, such as input costs or selling expenses,
there are no independent sources from which the Department can derive
dumping margins. The only source for calculated dumping margins is
administrative determinations. Thus, in an administrative review, if
the Department chooses as total AFA a calculated dumping margin from
the current or a prior segment of the proceeding, it is not necessary
to question the reliability of the margin for that time period. See,
e.g., Anhydrous Sodium Metasilicate from France: Preliminary Results of
Antidumping Duty Administrative Review, 68 FR 44283, 44284 (July 28,
2003) and Anhydrous Sodium Metasilicate from France: Final Results of
Antidumping Duty Administrative Review, 68 FR 60080 (October 21, 2003)
(unchanged in final). Therefore, given that we are using the highest
margin calculated for any respondent in any segment of the proceeding,
it is not necessary to question the reliability of this rate. The
Department has received no information to date that warrants revisiting
the issue of the reliability of the rate calculation itself. However,
because neither SM Pescados nor Valen[ccedil]a submitted information to
the Department or participated in a previous segment of this
proceeding, we do not have information specific to the two companies to
consider in determining whether the 67.80-percent margin is relevant to
each of them. Therefore, to determine whether the 67.80-percent margin
is relevant in this administrative review, we compared this rate to the
transaction-specific rates calculated for each mandatory respondent in
this review. Based on this comparison, we find that the selected AFA
rate is relevant because it fell within the range of individual
transaction margins calculated for one of the mandatory respondents.
See Memorandum to The File from Kate Johnson and Rebecca Trainor
entitled ``Corroboration of Adverse Facts Available Rate for the Final
Results in the 2004-2006 Antidumping Duty Administrative Review of
Certain Frozen Warmwater Shrimp from Brazil,'' dated September 5, 2007.
See also Notice of Preliminary Results of Antidumping Duty
Administrative Review; Partial Rescission and Postponement of Final
Results: Certain Softwood Lumber Products from Canada, 71 FR 33964,
33968 (June 12, 2006).
The Department will, however, consider information reasonably at
its disposal as to whether there are circumstances that would render a
margin inappropriate. Where circumstances indicate that the selected
margin is not appropriate as AFA, the Department may disregard the
margin and determine an appropriate margin. See, e.g., Fresh Cut
Flowers from Mexico; Final Results of Antidumping Duty Administrative
Review, 61 FR 6812, 6814 (February 22, 1996) (where the Department
disregarded the highest calculated margin as AFA because the margin was
based on a company's uncharacteristic business expense resulting in an
unusually high margin). For the instant review, we examined whether any
information on the record would discredit the selected rate as
reasonable facts available and have found none. Because we did not find
evidence indicating that the margin selected as AFA in this review is
not appropriate, we have determined that the highest margin calculated
for any respondent in any segment of the proceeding (i.e., 67.80
percent) is appropriate to use as AFA, and are assigning this rate to
SM Pescados and Valenca in the final results of this review.
Aquatica's Affiliated Parties
Aquatica provided information regarding the relationship between
Aquatica and its two affiliated producers/exporters of subject
[[Page 52064]]
merchandise at issue during the POR.\4\ After an analysis of this
information, as well as information obtained as a result of additional
research, we preliminarily determined that, in accordance with 19 CFR
351.401(f), it is not appropriate to collapse these affiliated entities
for purposes of this review because: 1) there is no common ownership
among the companies; 2) no managerial employees or board members of one
firm are associated with any of the other firms; 3) there is no sharing
of sales information, involvement in pricing and production decisions,
sharing of facilities or employees, or significant transactions between
and among the affiliated producers. Thus, there is no potential for
manipulation of price or production if Aquatica and its affiliates do
not receive the same antidumping duty rate. See Preliminary Results, 72
FR at 10682.
---------------------------------------------------------------------------
\4\ Based on information submitted in Aquatica's questionnaire
responses, as well as information obtained at verification, we have
accepted Aquatica's claim that its operations are intertwined with
those of Aquafeed such that they essentially function as one
company.
---------------------------------------------------------------------------
Since the Preliminary Results, no party to this proceeding has
commented on this issue and we have found no additional information
that would compel us to reverse our preliminary finding. Thus, for
purposes of these final results, we continue to find that it is not
appropriate to collapse these entities for purposes of this review.
Cost of Production
As discussed in the Preliminary Results, we conducted an
investigation to determine whether Aquatica and Compescal made third
country or home market sales, respectively, of the foreign like product
during the POR at prices below their costs of production (COP) within
the meaning of section 773(b)(1) of the Act. We performed the cost test
for these final results following the same methodology as in the
Preliminary Results, except as discussed in the Issues and Decision
Memorandum accompanying this notice (the Decision Memo).
For both Compescal and Aquatica, we found that 20 percent or more
of comparison market sales of a given product during the reporting
period were at prices less than the weighted-average COP for this
period. Thus, we determined that these below-cost sales were made in
``substantial quantities'' within an extended period of time and at
prices which did not permit the recovery of all costs within a
reasonable period of time in the normal course of trade. See sections
773(b)(2)(B) - (D) of the Act. Therefore, for purposes of these final
results, we found that both respondents made below-cost sales not in
the ordinary course of trade during the POR. Consequently, we
disregarded these sales and used the remaining sales as the basis for
determining normal value pursuant to section 773(b)(1) of the Act.
Analysis of Comments Received
All issues raised in the case briefs by parties to this
administrative review, and to which we have responded, are listed in
the Appendix to this notice and addressed in the Decision Memo, which
is adopted by this notice. Parties can find a complete discussion of
all issues raised in this review and the corresponding recommendations
in this public memorandum, which is on file in the Central Records
Unit, room B-099, of the main Department building.
In addition, a complete version of the Decision Memo can be
accessed directly on the Web at https://ia.ita.doc.gov/frn/. The paper
copy and electronic version of the Decision Memo are identical in
content.
Changes Since the Preliminary Results
Based on our analysis of the comments received, we have made
certain changes in the margin calculations. These changes are discussed
in the relevant sections of the Decision Memo.
Final Results of Review
We determine that the following weighted-average margin percentages
exist for the period August 4, 2004, through January 31, 2006:
------------------------------------------------------------------------
Manufacturer/Exporter Percent Margin
------------------------------------------------------------------------
Aquatica Maricultura do Brasil Ltda./ 4.62
Aquafeed do Brasil Ltda..................
Compescal - Comercio de Pescado 15.41
Aracatiense Ltda.........................
Review-Specific Average Rate Applicable to
the Following Companies:\5\ .............
------------------------------------------------------------------------
\5\ This rate is based on the weighted average of the margins calculated
for those companies selected for individual review, excluding de
minimis margins or margins based entirely on AFA.
------------------------------------------------------------------------
Manufacturer/Exporter Percent Margin
------------------------------------------------------------------------
Amazonas Industrias Alimenticias - AMASA.. 6.96
Bramex Brasil Mercantil S.A............... 6.96
Guy Vautrin Importacao & Exportacao....... 6.96
ITA Fish-S.W.F. Importacao E Exportacao 6.96
Ltda.....................................
JK Pesca Ltda............................. 6.96
Lusomar Maricultura Ltda.................. 6.96
Santa Lavinia Comercio E Exportacao Ltda.. 6.96
AFA Rate Applicable to the Following
Companies:...............................
------------------------------------------------------------------------
------------------------------------------------------------------------
Manufacturer/Exporter Percent Margin
------------------------------------------------------------------------
SM Pescados Industria Comercio E 67.80
Exportacao Ltda..........................
Valenca da Bahia Maricultura SA........... 67.80
------------------------------------------------------------------------
Assessment
The Department shall determine, and Customs and Border Protection
(CBP) shall assess, antidumping duties on all appropriate entries.
Pursuant to 19 CFR 351.212(b)(1), for Aquatica and Compescal,
because they did not report the entered value of their U.S. sales, we
have calculated importer-specific per-unit duty assessment rates by
aggregating the total amount of
[[Page 52065]]
antidumping duties calculated for the examined sales and dividing this
amount by the total quantity of those sales. To determine whether the
duty assessment rates are de minimis, in accordance with the
requirement set forth in 19 CFR 351.106(c)(2), we have calculated
importer-specific ad valorem ratios based on the estimated entered
value. For the responsive companies which were not selected for
individual review, we have calculated an assessment rate based on the
weighted-average of the cash deposit rates calculated for the companies
selected for individual review excluding any which are de minimis or
determined entirely on AFA.
We will instruct CBP to assess antidumping duties on all
appropriate entries covered by this review if any importer-specific
assessment rate calculated in the final results of this review is above
de minimis (i.e., at or above 0.50 percent). Pursuant to 19 CFR
351.106(c)(2), we will instruct CBP to liquidate without regard to
antidumping duties any entries for which the assessment rate is de
minimis (i.e., less than 0.50 percent). See 19 CFR 351.106(c)(1). The
Department intends to issue assessment instructions to CBP 15 days
after the date of publication of these final results of review.
The Department clarified its ``automatic assessment'' regulation on
May 6, 2003. See Antidumping and Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) (Assessment
Policy Notice). This clarification will apply to entries of subject
merchandise during the POR produced by companies included in these
final results of review for which the reviewed companies did not know
that the merchandise they sold to the intermediary (e.g., a reseller,
trading company, or exporter) was destined for the United States. In
such instances, we will instruct CBP to liquidate unreviewed entries at
the ``All Others'' rate established in the LTFV investigation if there
is no rate for the intermediary involved in the transaction. See
Assessment Policy Notice for a full discussion of this clarification.
Cash Deposit Requirements
Further, the following deposit requirements will be effective for
all shipments of shrimp from Brazil entered, or withdrawn from
warehouse, for consumption on or after the publication date of the
final results of this administrative review, as provided for by section
751(a)(2)(C) of the Act: 1) the cash deposit rates for the reviewed
companies will be the rates shown above, except if the rate is less
than 0.50 percent, de minimis within the meaning of 19 CFR
351.106(c)(1), the cash deposit will be zero; 2) for previously
investigated companies not listed above, the cash deposit rate will
continue to be the company-specific rate published for the most recent
period; 3) if the exporter is not a firm covered in this review, or the
LTFV investigation, but the manufacturer is, the cash deposit rate will
be the rate established for the most recent period for the manufacturer
of the merchandise; and 4) the cash deposit rate for all other
manufacturers or exporters will continue to be 7.05 percent, the ``All
Others'' rate established in the LTFV investigation. These deposit
requirements shall remain in effect until further notice.
Notification to Importers
This notice serves as a final 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.
Notification to Interested Parties
This notice serves as the only reminder to parties subject to
administrative protective order (APO) of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of return/destruction of APO materials or conversion to
judicial protective order is hereby requested. Failure to comply with
the regulations and the terms of an APO is a sanctionable violation.
We are issuing and publishing these final results of review in
accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR
351.221(b)(5).
Dated: September 5, 2007.
David M. Spooner,
Assistant Secretary for Import Administration.
Appendix Issues in Decision Memorandum
General Issues
1. Offset for Productivity Losses from Viral Infection
2. Zeroing Negative Margins
Company-Specific Issues
Compescal:
3. Calculation of Offset for Losses from Viral Infection
4. Calculation of Constructed Value Profit
5. Depreciation on Fixed Asset Revaluations
6. Treatment of Prime Quality Shrimp
Aquatica:
7. Adjustment Methodology for Losses from Viral Infection
8. Aquatica's Shrimp Cost Allocation Methodology
9. Changes in Inventories in Cost Calculation
10. Purchases from Affiliates
11. CV Profit and Selling Rates
12. Foreign Exchange Loss
13. Treatment of Broken Shrimp
Valen[ccedil]a:
14. Adverse Facts Available Rate Assigned to Valenca da Bahia
Maricultura S.A.
15. Corroboration of the Adverse Facts Available Rate Assigned to
Valenca da Bahia Maricultura S.A.
[FR Doc. E7-18009 Filed 9-11-07; 8:45 am]
BILLING CODE 3510-DS-S