Certain Orange Juice From Brazil; Dismissal of Request for Institution of a Section 751(b) Review Investigation, 61372-61374 [E7-21299]
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Federal Register / Vol. 72, No. 209 / Tuesday, October 30, 2007 / Notices
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[FR Doc. 07–5389 Filed 10–29–07; 8:45 am]
BILLING CODE 4312–53–M
INTERNATIONAL TRADE
COMMISSION
Certain Orange Juice From Brazil;
Dismissal of Request for Institution of
a Section 751(b) Review Investigation
United States International
Trade Commission.
ACTION: Dismissal of a request to
institute a section 751(b) investigation
concerning the Commission’s
affirmative determination in
investigation No. 731–TA–1089 (Final),
Certain Orange Juice from Brazil.
sroberts on PROD1PC70 with NOTICES
AGENCY:
SUMMARY: The Commission determines,
pursuant to section 751(b) of the Tariff
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20:46 Oct 29, 2007
Jkt 214001
Act of 1930 (19 U.S.C. 1675(b)) and
Commission rule 207.45, that the
subject request does not show changed
circumstances sufficient to warrant
institution of an investigation to review
in less than 24 months the
Commission’s final affirmative
determination in investigation No. 731–
TA–1089 (Final). Certain orange juice is
provided for in subheadings 2009.12.25,
2009.12.45, and 2009.19.00 of the
Harmonized Tariff Schedule of the
United States.
FOR FURTHER INFORMATION CONTACT:
Diane J. Mazur (202–205–3184;
diane.mazur@usitc.gov), Office of
Investigations, U.S. International Trade
Commission, 500 E Street SW.,
Washington, DC 20436. Hearingimpaired persons can obtain
information on this matter by contacting
the Commission’s TDD terminal on 202–
205–1810. Persons with mobility
impairments who will need special
assistance in gaining access to the
Commission should contact the Office
of the Secretary at 202–205–2000.
General information concerning the
Commission may also be obtained by
accessing its Internet server (https://
www.usitc.gov). The public record for
this matter may be viewed on the
Commission’s electronic docket (EDIS)
at https://edis.usitc.gov.
Background Information: On January
6, 2006, the Department of Commerce
determined that imports of certain
orange juice from Brazil are being sold
in the United States at less than fair
value (LTFV) within the meaning of
section 731 of the Act (19 U.S.C. 1673)
(71 FR 2183, January 13, 2006); and on
March 3, 2006, the Commission
determined, pursuant to section
735(b)(1) of the Act (19 U.S.C.
1673d(b)(1)), that an industry in the
United States was materially injured by
reason of imports of such LTFV
merchandise. Accordingly, Commerce
ordered that antidumping duties be
imposed on such imports (71 FR 12183,
March 9, 2006).
On June 13, 2007, the Commission
received a request to review its
affirmative determination in
investigation No. 731–TA–1089 (Final)
pursuant to section 751(b) of the Act (19
U.S.C. 1675(b)). The request was filed
by Tropicana Products, Inc., Bradenton,
FL. Tropicana alleges that shortfalls in
the Florida juice orange crop and
depleted inventories; significant price
increases and a greatly constricted
supply; and disruption of the alternative
sources of Brazilian supply following
imposition of the antidumping duty
order have resulted in the domestic
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Fmt 4703
Sfmt 4703
orange juice producers being harmed by
the order.
Pursuant to section 207.45(b) of the
Commission’s Rules of Practice and
Procedure,1 the Commission published
a notice in the Federal Register on July
25, 2007,2 requesting comments as to
whether the changed circumstances
alleged by the petitioner were sufficient
to warrant an investigation to review in
less than 24 months the Commission’s
final affirmative determination. On
September 24, 2007, the Commission
received comments in support of the
request from: (1) Counsel on behalf of
Tropicana, the party requesting the
review; (2) counsel on behalf of Louis
Dreyfus Citrus Inc. (‘‘Louis Dreyfus’’), a
domestic packager, merchant, and
manufacturer of orange juice; (3)
counsel on behalf of Cutrale Citrus
Juices, Inc., a U.S. producer; Citrus
Products, Inc., a U.S. importer; and
Sucocitrico Cutrale Lta., a Brazilian
exporter (collectively, ‘‘Cutrale Citrus’’);
(4) counsel on behalf of Fischer S/A
Agroindustria, a Brazilian producer, and
Citrosuco North America, Inc., a U.S.
producer/importer, (collectively,
‘‘Fischer’’); (5) Silver Springs Citrus,
Inc., a U.S. producer; (6) Cargill Juice
N.A., a U.S. producer/importer; and, (7)
Vitality Foodservice, Inc., a U.S.
purchaser.
A joint response in opposition to the
request was received from counsel on
behalf of Florida Citrus Mutual
(‘‘FCM’’), A. Duda & Sons, Inc. (doing
business as ‘‘Citrus Belle’’), Citrus
World, Inc., and Southern Garden Citrus
Processing Corporation (doing business
as ‘‘Southern Gardens’’) (collectively,
‘‘domestic producers’’).
Analysis: In considering whether to
institute a review investigation under
section 751(b), the Commission will not
institute such an investigation unless it
is persuaded there is sufficient
information demonstrating:
(1) that there are significant changed
circumstances from those in existence at
the time of the original investigations,
(2) that those changed circumstances
are not the natural and direct result of
the imposition of the antidumping and/
or countervailing duty order, and
(3) that the changed circumstances,
allegedly indicating that revocation of
the order would not be likely to lead to
continuation or recurrence of material
injury to the domestic industry, warrant
a full investigation.3 Additionally, in
the case of determinations issued less
than 24 months before the request for a
1 19
U.S.C. 1675 (b).
FR 40896.
3 See Gray Portland Cement and Cement Clinker
from Mexico, 66 FR 657400 (December 20, 2001).
2 72
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review, such as the determination at
issue here, the Commission can only
institute a changed circumstances
review on a showing of ‘‘good cause.’’ 4
The Commission has previously stated
that:
By enacting the good cause provision,
Congress intended to create a tougher
standard for instituting a review investigation
when a request is filed within 24 months.
The language used in section 751 indicates
that good cause will be found only in an
unusual case. * * * What constitutes good
cause will necessarily depend on the facts of
a particular case. As a general matter, some
situations clearly would fall within the
purview of the good cause provision such as:
(1) Fraud or misfeasance in the original
investigation; (2) acts of God, as exemplified
in the FCOJ case where a severe freeze after
the order was imposed sharply reduced U.S.
producers’ shipments of frozen concentrated
orange juice; and (3) a mistake of law or fact
in the original proceeding which renders the
original proceeding unfair. This list, of
course, is by no means exhaustive.5
1. Tropicana Has Not Shown ‘‘Good
Cause’’
As a threshold matter, while
Tropicana argues that ‘‘good cause’’
exists for the Commission to institute a
changed circumstances review even
though the statutorily required 24month period since publication of the
Commission’s final determination has
not passed, it cites no facts specific to
its ‘‘good cause’’ argument other than
those alleged to show sufficient changed
circumstances. As explained above, the
Commission has stated that ‘‘good
cause’’ implies a ‘‘tougher standard’’ for
instituting reviews within the 24-month
period and will be found only in an
‘‘unusual case,’’ such as (but not limited
to): fraud or misfeasance in the original
investigation; acts of God; or a mistake
of law or fact in the original proceeding
which renders the original proceeding
unfair.6
The facts alleged by Tropicana are not
of the type that would meet this higher
standard. Tropicana does not allege
fraud, misfeasance, or mistake of law or
fact in the original investigation.
Although Tropicana alleges that the
effects of the 2004/2005 hurricanes that
reduced the domestic producers’ supply
of oranges were not fully known until
after the Commission’s determination,
the Commission took the hurricanes and
reduced supply into account in its
sroberts on PROD1PC70 with NOTICES
4 19
U.S.C. 1675(b)(4).
Cooking Ware from Taiwan,
Views of the Commission Concerning its
Determination to Not Institute a Review of Inv. No.
731–TA–299, USITC Publication 2117, Aug. 1988,
pp. 7–8.
6 Porcelain-on-Steel Cooking Ware from Taiwan,
USITC Pub. 2117 (Aug. 1998) at 7–8.
5 Porcelain-on-Steel
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20:46 Oct 29, 2007
Jkt 214001
original decision.7 This case is thus
distinguishable from the 1984 case on
Frozen Concentrated Orange Juice from
Brazil, Inv. No. 751–TA–10 (Review),
where the Commission found ‘‘good
cause’’ and instituted a changed
circumstances review on the basis of a
severe freeze in Florida that occurred
after the Commission’s determination
and sharply reduced domestic
production, contributing to a surge in
demand for the Brazilian product.8
Moreover, as explained below, the
facts alleged by Tropicana do not even
show sufficient changed circumstances
to warrant a review, much less ‘‘good
cause.’’
2. Tropicana Has Not Shown Sufficient
Changed Circumstances
The information available, including
that provided by Tropicana in its
request, does not demonstrate, as it
must:
(1) That there are significant changed
circumstances from those in existence at
the time of the original investigation;
(2) That those changed circumstances
are not the natural and direct result of
the imposition of the antidumping duty
order; and
(3) That the changed circumstances,
allegedly indicating that revocation of
the order would not be likely to lead to
the continuation or recurrence of
material injury to the domestic industry,
warrant a full investigation.9
With respect to the first factor—
significant changed circumstances from
those in existence at the time of the
original investigation—many of the facts
alleged by Tropicana and others
supporting review do not even
constitute changes or differences from
circumstances that existed during the
original investigation and were
considered by the Commission in its
final determination. For example, the
hurricanes and citrus canker disease
that allegedly reduced the supply of
juice oranges to the domestic producers
occurred during the original period of
investigation and were noted by the
Commission, as was the decline in
7 Certain
Orange Juice from Brazil, USITC Pub.
3838 (March 2006), at 14–15.
8 Frozen Concentrated Orange Juice from Brazil,
USITC Pub. 1623 (Dec. 1984). The Commission
decided on review that the short-term effects of the
freeze would dissipate and that the domestic
industry remained vulnerable to the effects of
imports from Brazil.
9 Silicon Metal from Argentina, Brazil, and China,
63 FR 52289 (Sept. 30, 1998). See, generally, A.
Hirsh, Inc. v. United States, 737 F. Supp. 1186 (Ct.
Int’l Trade 1990); Avesta AB v. United States, 724
F. Supp. 974 (Ct. Int’l Trade 1989), aff’d, 914 F.2d
232 (Fed. Cir. 1990), cert. denied, 111 S. Ct. 1308
(1991).
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Frm 00050
Fmt 4703
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61373
domestic orange juice production.10
That these effects may have continued
after the Commission’s determination is
not evidence of new circumstances but
of a continuing trend.11 Because orange
trees take between 4 and 12 years from
planting to bear fruit,12 it is not
surprising or unexpected that domestic
production would not quickly return to
pre-hurricane levels. In addition, there
is evidence that this trend has begun to
reverse itself in that Florida juice orange
production for 2007/2008 is estimated
to increase substantially over the
previous year.13 Moreover, even if the
alleged circumstances represented
changes since the original period of
investigation, they are not significant
changes, but merely the normal
fluctuations that occur in agricultural
production due to factors such as
weather and disease.
Another alleged change is the decline
in U.S. retail demand for orange juice,
which Tropicana and others attribute to
the rise in retail orange juice prices
since the Commission’s original
determination due to short supply of
both juice oranges and orange juice.
However, the Commission noted in its
original determination that the parties
all agreed that the popularity of low
carbohydrate diets during the period
examined had reduced the demand for
orange juice.14 Thus, the alleged change
is not a change at all, but a circumstance
already in existence at the time of the
original investigation.
Parties in favor of instituting a review
also point to a shortfall in domestic
orange juice production, due to the
effects of weather and disease on orange
crop production. However, reduced
orange juice production had already
begun to manifest itself during the
original investigation period, and is
therefore not a change.15 We also note
that increased imports and drawdown of
burdensome inventories have
compensated for any shortfall in U.S.
production since the original
determination.16
With respect to the second factor—
that the changed circumstances are not
10 Certain Orange Juice from Brazil, USITC Pub.
3838 (March 2006), at 14–15.
11 Stainless Steel Plate from Sweden, 50 FR at
43614 (review petition denied where, inter alia,
petitioner’s asserted changed circumstance was
based on ‘‘merely a continuation of a trend’’ which
was discussed in the Commission’s determination
resulting in the imposition of the order).
12 Certain Orange Juice from Brazil, USITC Pub.
3838 (March 2006) at III–4, n.13.
13 Domestic Producers’ Comments at 6.
14 Certain Orange Juice from Brazil, USITC Pub.
3838 (March 2006) at 16.
15 Certain Orange Juice from Brazil, USITC Pub.
3838 (March 2006) at 20, n. 143.
16 Domestic Producers’ Comments at 16.
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Federal Register / Vol. 72, No. 209 / Tuesday, October 30, 2007 / Notices
the natural and direct result of the
imposition of the antidumping duty
order—Tropicana and others allege that,
in contrast to what would be expected
under the order, domestic production
has continued to decline and imports
have increased. Contrary to these
allegations, however, the evidence
indicates that changes that have
occurred in the U.S. market are
expected results of the order. That is,
while domestic production continued to
decline, U.S. prices have increased.17
Higher prices, including higher import
prices, are expected and positive effects
of the order for domestic producers.
Given these results, the increase in
imports since the order does not
constitute a changed circumstance not
resulting from the order sufficient to
warrant a review. The purpose of an
antidumping duty order is not to curtail
or disrupt import supply into the U.S.
market, but to ensure that import prices
reflect fair market value. The
Commission recognized in its original
determination that imports help meet
U.S. demand for orange juice when U.S.
supply is temporarily affected by short
orange crop years due to weather,
disease and other factors.18 As the
Commission stated in its original
determination in this case, and in
denying a similar request for a changed
circumstances review in
Polychloroprene Rubber from Japan,
[W]hile short supply conditions are a
relevant condition of competition, * * *
there is no short supply provision in the
statute and the fact that the domestic
industry may not be able to supply all of
demand does not mean the industry may not
be materially injured or threatened with
material injury by reason of subject
imports.19
sroberts on PROD1PC70 with NOTICES
Finally, with respect to the third
factor, neither Tropicana nor the other
parties supporting review have put forth
sufficient evidence to show that the
alleged changed circumstances indicate
that revocation of the order would not
be likely to lead to the continuation or
recurrence of material injury to the
domestic industry. In fact, the evidence
they have cited would indicate the
opposite. The fact that U.S. production
has continued to decline, would
indicate if anything, that the industry
has not fully recovered from the adverse
effects of subject imports, as well as
adverse weather and disease conditions,
and is vulnerable to continued injury if
the order were revoked. In addition,
17 Domestic
Producers’ Comments at 16–17.
Orange Juice from Brazil, USITC Pub.
3838 (March 2006) at 20–21.
19 Polychloroprene Rubber from Japan, 71 FR at
17140; see also Certain Orange Juice from Brazil,
USITC Pub. 3838 (March 2006) at 20, n. 143.
18 Certain
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20:46 Oct 29, 2007
Jkt 214001
imports have increased since the order
was imposed, and there is no indication
or allegation that Brazil has less
capacity or incentive to increase its
shipments to the United States absent
the order. Record evidence in fact
suggests that from 2005/2006 to 2006/
2007, Brazilian orange juice production,
exports, and end-of-period inventories
grew.20 Moreover, data also show that
after the order was imposed the average
customs value per SSE liter of imports
from Brazil rose.21 Likewise, there is no
indication or claim that Brazilian prices
would not return to pre-order levels if
the order were revoked.
In sum, Tropicana has not provided
adequate evidentiary support for its
allegations that sufficient changed
circumstances and ‘‘good cause’’ exist
for the Commission to institute a
review. The circumstances allegedly fail
to satisfy these requirements because
they (1) do not constitute changes since
the original determination or are not
significant changes; (2) do not constitute
circumstances that are not a direct and
natural result of the order; and (3) do
not indicate, so as to justify proceeding
to a full review, that revocation of the
antidumping duty order would not be
likely to lead to continuation or
recurrence of material injury to the
domestic industry.
In light of the above analysis, the
Commission under section 751(b) of the
Act determines that institution of an
investigation to review in less than 24
months the Commission’s final
affirmative determination in
investigation No. 731–TA–1089 (Final),
Certain Orange Juice from Brazil, is not
warranted.
Issued: October 24, 2007.
By order of the Commission.
Marilyn R. Abbott,
Secretary to the Commission.
[FR Doc. E7–21299 Filed 10–29–07; 8:45 am]
BILLING CODE 7020–02–P
INTERNATIONAL TRADE
COMMISSION
[Investigation No. 731–TA–1135
(Preliminary)]
Sodium Metal From France
United States International
Trade Commission.
ACTION: Institution of antidumping duty
investigation and scheduling of a
preliminary phase investigation.
AGENCY:
SUMMARY: The Commission hereby gives
notice of the institution of an
20 Domestic
21 Domestic
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Producers’ Comments at 27–29.
Producers’ Comments at 17.
Frm 00051
Fmt 4703
Sfmt 4703
investigation and commencement of
preliminary phase antidumping duty
investigation No. 731-TA–1135
(Preliminary) under section 733(a) of the
Tariff Act of 1930 (19 U.S.C. 1673b(a))
(the Act) to determine whether there is
a reasonable indication that an industry
in the United States is materially
injured or threatened with material
injury, or the establishment of an
industry in the United States is
materially retarded, by reason of
imports from France of sodium metal,
provided for in subheading 2805.11.00
of the Harmonized Tariff Schedule of
the United States, that are alleged to be
sold in the United States at less than fair
value. Unless the Department of
Commerce extends the time for
initiation pursuant to section
732(c)(1)(B) of the Act (19 U.S.C.
1673a(c)(1)(B)), the Commission must
reach a preliminary determination in
antidumping investigations in 45 days,
or in this case by December 7, 2007. The
Commission’s views are due at
Commerce within five business days
thereafter, or by December 14, 2007.
For further information concerning
the conduct of this investigation and
rules of general application, consult the
Commission’s Rules of Practice and
Procedure, part 201, subparts A through
E (19 CFR part 201), and part 207,
subparts A and B (19 CFR part 207).
EFFECTIVE DATE: October 23, 2007.
FOR FURTHER INFORMATION CONTACT: Fred
Ruggles (202–205–3187/
fred.ruggles@usitc.gov), Office of
Investigations, U.S. International Trade
Commission, 500 E Street SW.,
Washington, DC 20436. Hearingimpaired persons can obtain
information on this matter by contacting
the Commission’s TDD terminal at 202–
205–1810. Persons with mobility
impairments who will need special
assistance in gaining access to the
Commission should contact the Office
of the Secretary at 202–205–2000.
General information concerning the
Commission may also be obtained by
accessing its internet server (https://
www.usitc.gov). The public record for
this investigation may be viewed on the
Commission’s electronic docket (EDIS)
at https://edis.usitc.gov.
SUPPLEMENTARY INFORMATION:
Background. This investigation is
being instituted in response to a petition
filed effective October 23, 2007, by E.I.
DuPont de Nemours & Co., Wilmington,
DE, on behalf of the domestic industry
that produces sodium metal.
Participation in the investigation and
public service list. Persons (other than
petitioners) wishing to participate in the
investigation as parties must file an
E:\FR\FM\30OCN1.SGM
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Agencies
[Federal Register Volume 72, Number 209 (Tuesday, October 30, 2007)]
[Notices]
[Pages 61372-61374]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-21299]
=======================================================================
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INTERNATIONAL TRADE COMMISSION
Certain Orange Juice From Brazil; Dismissal of Request for
Institution of a Section 751(b) Review Investigation
AGENCY: United States International Trade Commission.
ACTION: Dismissal of a request to institute a section 751(b)
investigation concerning the Commission's affirmative determination in
investigation No. 731-TA-1089 (Final), Certain Orange Juice from
Brazil.
-----------------------------------------------------------------------
SUMMARY: The Commission determines, pursuant to section 751(b) of the
Tariff Act of 1930 (19 U.S.C. 1675(b)) and Commission rule 207.45, that
the subject request does not show changed circumstances sufficient to
warrant institution of an investigation to review in less than 24
months the Commission's final affirmative determination in
investigation No. 731-TA-1089 (Final). Certain orange juice is provided
for in subheadings 2009.12.25, 2009.12.45, and 2009.19.00 of the
Harmonized Tariff Schedule of the United States.
FOR FURTHER INFORMATION CONTACT: Diane J. Mazur (202-205-3184;
diane.mazur@usitc.gov), Office of Investigations, U.S. International
Trade Commission, 500 E Street SW., Washington, DC 20436. Hearing-
impaired persons can obtain information on this matter by contacting
the Commission's TDD terminal on 202-205-1810. Persons with mobility
impairments who will need special assistance in gaining access to the
Commission should contact the Office of the Secretary at 202-205-2000.
General information concerning the Commission may also be obtained by
accessing its Internet server (https://www.usitc.gov). The public record
for this matter may be viewed on the Commission's electronic docket
(EDIS) at https://edis.usitc.gov.
Background Information: On January 6, 2006, the Department of
Commerce determined that imports of certain orange juice from Brazil
are being sold in the United States at less than fair value (LTFV)
within the meaning of section 731 of the Act (19 U.S.C. 1673) (71 FR
2183, January 13, 2006); and on March 3, 2006, the Commission
determined, pursuant to section 735(b)(1) of the Act (19 U.S.C.
1673d(b)(1)), that an industry in the United States was materially
injured by reason of imports of such LTFV merchandise. Accordingly,
Commerce ordered that antidumping duties be imposed on such imports (71
FR 12183, March 9, 2006).
On June 13, 2007, the Commission received a request to review its
affirmative determination in investigation No. 731-TA-1089 (Final)
pursuant to section 751(b) of the Act (19 U.S.C. 1675(b)). The request
was filed by Tropicana Products, Inc., Bradenton, FL. Tropicana alleges
that shortfalls in the Florida juice orange crop and depleted
inventories; significant price increases and a greatly constricted
supply; and disruption of the alternative sources of Brazilian supply
following imposition of the antidumping duty order have resulted in the
domestic orange juice producers being harmed by the order.
Pursuant to section 207.45(b) of the Commission's Rules of Practice
and Procedure,\1\ the Commission published a notice in the Federal
Register on July 25, 2007,\2\ requesting comments as to whether the
changed circumstances alleged by the petitioner were sufficient to
warrant an investigation to review in less than 24 months the
Commission's final affirmative determination. On September 24, 2007,
the Commission received comments in support of the request from: (1)
Counsel on behalf of Tropicana, the party requesting the review; (2)
counsel on behalf of Louis Dreyfus Citrus Inc. (``Louis Dreyfus''), a
domestic packager, merchant, and manufacturer of orange juice; (3)
counsel on behalf of Cutrale Citrus Juices, Inc., a U.S. producer;
Citrus Products, Inc., a U.S. importer; and Sucocitrico Cutrale Lta., a
Brazilian exporter (collectively, ``Cutrale Citrus''); (4) counsel on
behalf of Fischer S/A Agroindustria, a Brazilian producer, and
Citrosuco North America, Inc., a U.S. producer/importer, (collectively,
``Fischer''); (5) Silver Springs Citrus, Inc., a U.S. producer; (6)
Cargill Juice N.A., a U.S. producer/importer; and, (7) Vitality
Foodservice, Inc., a U.S. purchaser.
---------------------------------------------------------------------------
\1\ 19 U.S.C. 1675 (b).
\2\ 72 FR 40896.
---------------------------------------------------------------------------
A joint response in opposition to the request was received from
counsel on behalf of Florida Citrus Mutual (``FCM''), A. Duda & Sons,
Inc. (doing business as ``Citrus Belle''), Citrus World, Inc., and
Southern Garden Citrus Processing Corporation (doing business as
``Southern Gardens'') (collectively, ``domestic producers'').
Analysis: In considering whether to institute a review
investigation under section 751(b), the Commission will not institute
such an investigation unless it is persuaded there is sufficient
information demonstrating:
(1) that there are significant changed circumstances from those in
existence at the time of the original investigations,
(2) that those changed circumstances are not the natural and direct
result of the imposition of the antidumping and/or countervailing duty
order, and
(3) that the changed circumstances, allegedly indicating that
revocation of the order would not be likely to lead to continuation or
recurrence of material injury to the domestic industry, warrant a full
investigation.\3\ Additionally, in the case of determinations issued
less than 24 months before the request for a
[[Page 61373]]
review, such as the determination at issue here, the Commission can
only institute a changed circumstances review on a showing of ``good
cause.'' \4\ The Commission has previously stated that:
---------------------------------------------------------------------------
\3\ See Gray Portland Cement and Cement Clinker from Mexico, 66
FR 657400 (December 20, 2001).
\4\ 19 U.S.C. 1675(b)(4).
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By enacting the good cause provision, Congress intended to
create a tougher standard for instituting a review investigation
when a request is filed within 24 months. The language used in
section 751 indicates that good cause will be found only in an
unusual case. * * * What constitutes good cause will necessarily
depend on the facts of a particular case. As a general matter, some
situations clearly would fall within the purview of the good cause
provision such as: (1) Fraud or misfeasance in the original
investigation; (2) acts of God, as exemplified in the FCOJ case
where a severe freeze after the order was imposed sharply reduced
U.S. producers' shipments of frozen concentrated orange juice; and
(3) a mistake of law or fact in the original proceeding which
renders the original proceeding unfair. This list, of course, is by
no means exhaustive.\5\
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\5\ Porcelain-on-Steel Cooking Ware from Taiwan, Views of the
Commission Concerning its Determination to Not Institute a Review of
Inv. No. 731-TA-299, USITC Publication 2117, Aug. 1988, pp. 7-8.
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1. Tropicana Has Not Shown ``Good Cause''
As a threshold matter, while Tropicana argues that ``good cause''
exists for the Commission to institute a changed circumstances review
even though the statutorily required 24-month period since publication
of the Commission's final determination has not passed, it cites no
facts specific to its ``good cause'' argument other than those alleged
to show sufficient changed circumstances. As explained above, the
Commission has stated that ``good cause'' implies a ``tougher
standard'' for instituting reviews within the 24-month period and will
be found only in an ``unusual case,'' such as (but not limited to):
fraud or misfeasance in the original investigation; acts of God; or a
mistake of law or fact in the original proceeding which renders the
original proceeding unfair.\6\
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\6\ Porcelain-on-Steel Cooking Ware from Taiwan, USITC Pub. 2117
(Aug. 1998) at 7-8.
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The facts alleged by Tropicana are not of the type that would meet
this higher standard. Tropicana does not allege fraud, misfeasance, or
mistake of law or fact in the original investigation. Although
Tropicana alleges that the effects of the 2004/2005 hurricanes that
reduced the domestic producers' supply of oranges were not fully known
until after the Commission's determination, the Commission took the
hurricanes and reduced supply into account in its original decision.\7\
This case is thus distinguishable from the 1984 case on Frozen
Concentrated Orange Juice from Brazil, Inv. No. 751-TA-10 (Review),
where the Commission found ``good cause'' and instituted a changed
circumstances review on the basis of a severe freeze in Florida that
occurred after the Commission's determination and sharply reduced
domestic production, contributing to a surge in demand for the
Brazilian product.\8\
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\7\ Certain Orange Juice from Brazil, USITC Pub. 3838 (March
2006), at 14-15.
\8\ Frozen Concentrated Orange Juice from Brazil, USITC Pub.
1623 (Dec. 1984). The Commission decided on review that the short-
term effects of the freeze would dissipate and that the domestic
industry remained vulnerable to the effects of imports from Brazil.
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Moreover, as explained below, the facts alleged by Tropicana do not
even show sufficient changed circumstances to warrant a review, much
less ``good cause.''
2. Tropicana Has Not Shown Sufficient Changed Circumstances
The information available, including that provided by Tropicana in
its request, does not demonstrate, as it must:
(1) That there are significant changed circumstances from those in
existence at the time of the original investigation;
(2) That those changed circumstances are not the natural and direct
result of the imposition of the antidumping duty order; and
(3) That the changed circumstances, allegedly indicating that
revocation of the order would not be likely to lead to the continuation
or recurrence of material injury to the domestic industry, warrant a
full investigation.\9\
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\9\ Silicon Metal from Argentina, Brazil, and China, 63 FR 52289
(Sept. 30, 1998). See, generally, A. Hirsh, Inc. v. United States,
737 F. Supp. 1186 (Ct. Int'l Trade 1990); Avesta AB v. United
States, 724 F. Supp. 974 (Ct. Int'l Trade 1989), aff'd, 914 F.2d 232
(Fed. Cir. 1990), cert. denied, 111 S. Ct. 1308 (1991).
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With respect to the first factor--significant changed circumstances
from those in existence at the time of the original investigation--many
of the facts alleged by Tropicana and others supporting review do not
even constitute changes or differences from circumstances that existed
during the original investigation and were considered by the Commission
in its final determination. For example, the hurricanes and citrus
canker disease that allegedly reduced the supply of juice oranges to
the domestic producers occurred during the original period of
investigation and were noted by the Commission, as was the decline in
domestic orange juice production.\10\ That these effects may have
continued after the Commission's determination is not evidence of new
circumstances but of a continuing trend.\11\ Because orange trees take
between 4 and 12 years from planting to bear fruit,\12\ it is not
surprising or unexpected that domestic production would not quickly
return to pre-hurricane levels. In addition, there is evidence that
this trend has begun to reverse itself in that Florida juice orange
production for 2007/2008 is estimated to increase substantially over
the previous year.\13\ Moreover, even if the alleged circumstances
represented changes since the original period of investigation, they
are not significant changes, but merely the normal fluctuations that
occur in agricultural production due to factors such as weather and
disease.
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\10\ Certain Orange Juice from Brazil, USITC Pub. 3838 (March
2006), at 14-15.
\11\ Stainless Steel Plate from Sweden, 50 FR at 43614 (review
petition denied where, inter alia, petitioner's asserted changed
circumstance was based on ``merely a continuation of a trend'' which
was discussed in the Commission's determination resulting in the
imposition of the order).
\12\ Certain Orange Juice from Brazil, USITC Pub. 3838 (March
2006) at III-4, n.13.
\13\ Domestic Producers' Comments at 6.
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Another alleged change is the decline in U.S. retail demand for
orange juice, which Tropicana and others attribute to the rise in
retail orange juice prices since the Commission's original
determination due to short supply of both juice oranges and orange
juice. However, the Commission noted in its original determination that
the parties all agreed that the popularity of low carbohydrate diets
during the period examined had reduced the demand for orange juice.\14\
Thus, the alleged change is not a change at all, but a circumstance
already in existence at the time of the original investigation.
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\14\ Certain Orange Juice from Brazil, USITC Pub. 3838 (March
2006) at 16.
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Parties in favor of instituting a review also point to a shortfall
in domestic orange juice production, due to the effects of weather and
disease on orange crop production. However, reduced orange juice
production had already begun to manifest itself during the original
investigation period, and is therefore not a change.\15\ We also note
that increased imports and drawdown of burdensome inventories have
compensated for any shortfall in U.S. production since the original
determination.\16\
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\15\ Certain Orange Juice from Brazil, USITC Pub. 3838 (March
2006) at 20, n. 143.
\16\ Domestic Producers' Comments at 16.
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With respect to the second factor--that the changed circumstances
are not
[[Page 61374]]
the natural and direct result of the imposition of the antidumping duty
order--Tropicana and others allege that, in contrast to what would be
expected under the order, domestic production has continued to decline
and imports have increased. Contrary to these allegations, however, the
evidence indicates that changes that have occurred in the U.S. market
are expected results of the order. That is, while domestic production
continued to decline, U.S. prices have increased.\17\ Higher prices,
including higher import prices, are expected and positive effects of
the order for domestic producers.
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\17\ Domestic Producers' Comments at 16-17.
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Given these results, the increase in imports since the order does
not constitute a changed circumstance not resulting from the order
sufficient to warrant a review. The purpose of an antidumping duty
order is not to curtail or disrupt import supply into the U.S. market,
but to ensure that import prices reflect fair market value. The
Commission recognized in its original determination that imports help
meet U.S. demand for orange juice when U.S. supply is temporarily
affected by short orange crop years due to weather, disease and other
factors.\18\ As the Commission stated in its original determination in
this case, and in denying a similar request for a changed circumstances
review in Polychloroprene Rubber from Japan,
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\18\ Certain Orange Juice from Brazil, USITC Pub. 3838 (March
2006) at 20-21.
[W]hile short supply conditions are a relevant condition of
competition, * * * there is no short supply provision in the statute
and the fact that the domestic industry may not be able to supply
all of demand does not mean the industry may not be materially
injured or threatened with material injury by reason of subject
imports.\19\
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\19\ Polychloroprene Rubber from Japan, 71 FR at 17140; see also
Certain Orange Juice from Brazil, USITC Pub. 3838 (March 2006) at
20, n. 143.
Finally, with respect to the third factor, neither Tropicana nor
the other parties supporting review have put forth sufficient evidence
to show that the alleged changed circumstances indicate that revocation
of the order would not be likely to lead to the continuation or
recurrence of material injury to the domestic industry. In fact, the
evidence they have cited would indicate the opposite. The fact that
U.S. production has continued to decline, would indicate if anything,
that the industry has not fully recovered from the adverse effects of
subject imports, as well as adverse weather and disease conditions, and
is vulnerable to continued injury if the order were revoked. In
addition, imports have increased since the order was imposed, and there
is no indication or allegation that Brazil has less capacity or
incentive to increase its shipments to the United States absent the
order. Record evidence in fact suggests that from 2005/2006 to 2006/
2007, Brazilian orange juice production, exports, and end-of-period
inventories grew.\20\ Moreover, data also show that after the order was
imposed the average customs value per SSE liter of imports from Brazil
rose.\21\ Likewise, there is no indication or claim that Brazilian
prices would not return to pre-order levels if the order were revoked.
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\20\ Domestic Producers' Comments at 27-29.
\21\ Domestic Producers' Comments at 17.
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In sum, Tropicana has not provided adequate evidentiary support for
its allegations that sufficient changed circumstances and ``good
cause'' exist for the Commission to institute a review. The
circumstances allegedly fail to satisfy these requirements because they
(1) do not constitute changes since the original determination or are
not significant changes; (2) do not constitute circumstances that are
not a direct and natural result of the order; and (3) do not indicate,
so as to justify proceeding to a full review, that revocation of the
antidumping duty order would not be likely to lead to continuation or
recurrence of material injury to the domestic industry.
In light of the above analysis, the Commission under section 751(b)
of the Act determines that institution of an investigation to review in
less than 24 months the Commission's final affirmative determination in
investigation No. 731-TA-1089 (Final), Certain Orange Juice from
Brazil, is not warranted.
Issued: October 24, 2007.
By order of the Commission.
Marilyn R. Abbott,
Secretary to the Commission.
[FR Doc. E7-21299 Filed 10-29-07; 8:45 am]
BILLING CODE 7020-02-P