Certain Frozen Fish Fillets from the Socialist Republic of Vietnam: Preliminary Results of the Third New Shipper Reviews, 4920-4924 [E9-1722]
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Federal Register / Vol. 74, No. 17 / Wednesday, January 28, 2009 / Notices
Issue 18: Whether the Department Failed to
Incorporate Minor Corrections Accepted at
Verification.
Issue 19: Whether the Department Mistakenly
Used an MEP from a Subsidy Country to
Value an FOP.
Issue 20: Whether the Department Used the
Correct Kilogram (‘‘kg’’)/Square Meter
(‘‘M2’’) Converter for Lauan Veneer
(‘‘LAUANVENEER’’).
Issue 21: Whether the Department Used an
Incorrect SV for Truck Freight in the Cost
Calculation String for LEATHEROID.
Issue 22: Whether the Department Incorrectly
Included Packing Labor in the Calculation
of the Cost of Manufacture (‘‘COM’’) with
Respect to CONNUMS Reported in the
‘‘Sold Not Produced’’ (‘‘SNP’’) FOP
Database.
Issue 23: Whether the Department Made an
Error in the Calculation of the Surrogate
Financial Ratios.
Issue 24: Whether the Department Failed to
Deflate SVs Based on 2007 Import Data.
Issue 25: Whether the Department Applied
the Correct kg/Cubic Meter (‘‘M3’’)
Converter for Fiberboard.
Issue 26: Whether the Department Used an
Incorrect SV for Philippine Harmonized
Schedule (‘‘HS’’) Number 4407.99.00 in the
SNP SV Spreadsheet to Value Several
Types of Wood and Wood Parts.
[FR Doc. E9–1861 Filed 1–27–09; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
A–552–801
sroberts on PROD1PC70 with NOTICES
Certain Frozen Fish Fillets from the
Socialist Republic of Vietnam:
Preliminary Results of the Third New
Shipper Reviews
AGENCY: Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: On February 1, 2005, the
Department published in the Federal
Register the antidumping duty order on
certain frozen fish fillets from the
Socialist Republic of Vietnam
(‘‘Vietnam’’). See Notice of
Antidumping Duty Order: Certain
Frozen Fish Fillets From the Socialist
Republic of Vietnam, 68 FR 47909
(August 12, 2003) (‘‘Order’’). The
Department is conducting new shipper
reviews (‘‘NSR’’) of the Order, covering
the period of review (‘‘POR’’) of August
1, 2007, through January 31, 2008. If
these preliminary results are adopted in
our final results of review, we will
instruct U.S. Customs and Border
Protection (‘‘CBP’’) to assess
antidumping duties on entries of subject
merchandise during the POR for which
the importer–specific assessment rates
are above de minimis.
EFFECTIVE DATE: January 28, 2009.
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17:30 Jan 27, 2009
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FOR FURTHER INFORMATION CONTACT:
Alan Ray or Emeka Chukwudebe, AD/
CVD Operations, Office 9, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington DC 20230;
telephone: (202) 482–5403 or (202) 482–
0219, respectively.
SUPPLEMENTARY INFORMATION:
General Background
On February 25, 2008, pursuant to
section 751(a)(2)(B)(i) of the Tariff Act
of 1930, as amended (‘‘the Act’’), and 19
CFR 351.214(c), the Department
received NSR requests from Asia
Commerce Fisheries Joint Stock
Company (‘‘Acom’’) and Hiep Thanh
Seafood Joint Stock Company (‘‘Hiep
Thanh). Both companies certified that
they are the producers and exporters of
the subject merchandise upon which the
requests were based.
On April 7, 2008, the Department
initiated antidumping duty new shipper
reviews on frozen fish fillets from
Vietnam covering the two companies.
See Certain Frozen Fish Fillets from the
Socialist Republic of Vietnam: Initiation
of Antidumping Duty New Shipper
Reviews, 72 FR 54428 (April 7, 2008).
On April 14, 2008, the Department
issued original questionnaires to both
Hiep Thanh and Acom. Between May
and October 2008, Hiep Thanh and
Acom submitted responses to the
original sections A, C, and D
questionnaires and supplemental
sections A, C, and D questionnaires.
Extension of Time Limits
On September 25, 2008, the
Department extended the deadline for
the preliminary results of this review by
120 days, to January 20, 2009. See
Certain Frozen Fish Fillets from the
Socialist Republic of Vietnam:
Extension of Time Limits for the
Preliminary Results of the New Shipper
Reviews, 73 FR 55496 (September 25,
2008)1 (‘‘Extension’’).
Surrogate Country and Surrogate
Values
On December 12, 2008, the
Department sent interested parties a
letter requesting comments on surrogate
country selection and information
pertaining to valuing factors of
production (‘‘FOP’’). On January 5,
1 Where a statutory deadline falls on a weekend,
federal holiday, or any other day when the
Department is closed, the Department will continue
its longstanding practice of reaching our
determination on the next business day. In this
instance, the preliminary results will be released no
later than January 21, 2009.
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2009, Petitioners2 submitted surrogate
value data. No other party submitted
surrogate country or surrogate value
data.
Verification
Pursuant to 19 CFR 351.307(b)(iv), we
conducted verification of the sales and
factors of production (‘‘FOP’’) for Hiep
Thanh between November 12–20, 2008.
See Memorandum to the File from Alan
Ray, Case Analyst through Alex
Villanueva, Program Manager,
Verification of the Sales and Factors
Response of Hiep Thanh in the
Antidumping New Shipper Review of
Certain Frozen Fish Fillets from the
Socialist Republic of Vietnam
(‘‘Vietnam’’), dated December 12, 2008
(‘‘Hiep Thanh Verification Report’’).
Scope of the Order
The product covered by this Order is
frozen fish fillets, including regular,
shank, and strip fillets and portions
thereof, whether or not breaded or
marinated, of the species Pangasius
Bocourti, Pangasius Hypophthalmus
(also known as Pangasius Pangasius),
and Pangasius Micronemus. Frozen fish
fillets are lengthwise cuts of whole fish.
The fillet products covered by the scope
include boneless fillets with the belly
flap intact (‘‘regular’’ fillets), boneless
fillets with the belly flap removed
(‘‘shank’’ fillets), boneless shank fillets
cut into strips (‘‘fillet strips/finger’’),
which include fillets cut into strips,
chunks, blocks, skewers, or any other
shape. Specifically excluded from the
scope are frozen whole fish (whether or
not dressed), frozen steaks, and frozen
belly–flap nuggets. Frozen whole
dressed fish are deheaded, skinned, and
eviscerated. Steaks are bone–in, cross–
section cuts of dressed fish. Nuggets are
the belly–flaps. The subject
merchandise will be hereinafter referred
to as frozen ‘‘basa’’ and ‘‘tra’’ fillets,
which are the Vietnamese common
names for these species of fish. These
products are classifiable under tariff
article codes 1604.19.4000,
1604.19.5000, 0305.59.4000,
0304.29.6033 (Frozen Fish Fillets of the
species Pangasius including basa and
tra) of the Harmonized Tariff Schedule
of the United States (‘‘HTSUS’’).3 This
2 The Catfish Farmers of America and individual
U.S. catfish processors, America’s Catch,
Consolidated Catfish Companies, LLC dba Country
Select Catfish, Delta Pride Catfish, Inc., Harvest
Select Catfish, Inc., Heartland Catfish Company,
Pride of the Pond, Simmons Farm Raised Catfish,
Inc., and Southern Pride Catfish Company LLC
(collectively, ‘‘Petitioners’’).
3 Until July 1, 2004, these products were
classifiable under tariff article codes 0304.20.60.30
(Frozen Catfish Fillets), 0304.20.60.96 (Frozen Fish
Fillets, NESOI), 0304.20.60.43 (Frozen Freshwater
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Order covers all frozen fish fillets
meeting the above specification,
regardless of tariff classification.
Although the HTSUS subheading is
provided for convenience and customs
purposes, our written description of the
scope of the Order is dispositive.
Non–Market Economy Country Status
In every case conducted by the
Department involving Vietnam, Vietnam
has been treated as a non–market
(‘‘NME’’) country. In accordance with
section 771(18)(C)(i) of the Act, any
determination that a foreign country is
an NME country shall remain in effect
until revoked by the administering
authority. See Certain Frozen Fish
Fillets from the Socialist Republic of
Vietnam: Final Results of Antidumping
Duty Adminstrative Review and Partial
Rescission, 73 FR 15479 (March 24,
2008) (‘‘3rd AR Final Results’’). None of
the parties to this proceeding have
contested such treatment. Accordingly,
we calculated normal value (‘‘NV’’) in
accordance with section 773(c) of the
Act, which applies to NME countries.
sroberts on PROD1PC70 with NOTICES
Separate Rate Determinations
A designation as an NME remains in
effect until it is revoked by the
Department. See section 771(18)(C) of
the Act. Accordingly, there is a
rebuttable presumption that all
companies within Vietnam are subject
to government control and, thus, should
be assessed a single antidumping duty
rate. It is the Department’s standard
policy to assign all exporters of the
merchandise subject to review in NME
countries a single rate unless an
exporter can affirmatively demonstrate
an absence of government control, both
in law (de jure) and in fact (de facto),
with respect to exports. To establish
whether a company is sufficiently
independent to be entitled to a separate,
company–specific rate, the Department
analyzes each exporting entity in an
NME country under the test established
in the Final Determination of Sales at
Less than Fair Value: Sparklers from the
People’s Republic of China, 56 FR 20588
(May 6, 1991) (‘‘Sparklers’’), as
amplified by the Notice of Final
Determination of Sales at Less Than
Fair Value: Silicon Carbide from the
People’s Republic of China, 59 FR 22585
(May 2, 1994) (‘‘Silicon Carbide’’).
A. Absence of De Jure Control
The Department considers the
following de jure criteria in determining
Fish Fillets) and 0304.20.60.57 (Frozen Sole Fillets)
of the HTSUS. Until February 1, 2007, these
products were classifiable under tariff article code
0304.20.60.33 (Frozen Fish Fillets of the species
Pangasius including basa and tra) of the HTSUS.
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whether an individual company may be
granted a separate rate: (1) an absence of
restrictive stipulations associated with
an individual exporter’s business and
export licenses; and (2) any legislative
enactments decentralizing control of
companies.
In this review, Hiep Thanh and Acom
submitted complete responses to the
separate rates section of the
Department’s NME questionnaire. The
evidence submitted by Hiep Thanh and
Acom includes government laws and
regulations on corporate ownership,
business licenses, and narrative
information regarding the company’s
operations and selection of
management. The evidence provided by
Hiep Thanh and Acom supports a
finding of a de jure absence of
government control over their export
activities. We have no information in
this proceeding that would cause us to
reconsider this determination. Thus, we
believe that the evidence on the record
supports a preliminary finding of an
absence of de jure government control
based on: (1) an absence of restrictive
stipulations associated with the
exporter’s business license; and (2) the
legal authority on the record
decentralizing control over the
respondents.
B. Absence of De Facto Control
The absence of de facto government
control over exports is based on whether
the Respondent: (1) sets its own export
prices independent of the government
and other exporters; (2) retains the
proceeds from its export sales and
makes independent decisions regarding
the disposition of profits or financing of
losses; (3) has the authority to negotiate
and sign contracts and other
agreements; and (4) has autonomy from
the government regarding the selection
of management. See Silicon Carbide, 59
FR at 22587; Sparklers, 56 FR at 20589;
see also Notice of Final Determination
of Sales at Less Than Fair Value:
Furfuryl Alcohol from the People’s
Republic of China, 60 FR 22544, 22545
(May 8, 1995).
In their questionnaire responses, Hiep
Thanh and Acom submitted evidence
indicating an absence of de facto
government control over their export
activities. Specifically, this evidence
indicates that: (1) each company sets its
own export prices independent of the
government and without the approval of
a government authority; (2) each
company retains the proceeds from its
sales and makes independent decisions
regarding the disposition of profits or
financing of losses; (3) each company
has a general manager, branch manager
or division manager with the authority
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to negotiate and bind the company in an
agreement; (4) the general manager is
selected by the board of directors or
company employees, and the general
manager appoints the deputy managers
and the manager of each department;
and (5) there is no restriction on any of
the companies’ use of export revenues.
Therefore, the Department preliminarily
finds that Hiep Thanh and Acom have
established prima facie that they qualify
for separate rates under the criteria
established by Silicon Carbide and
Sparklers.
New Shipper Review Bona Fide
Analysis
Consistent with the Department’s
practice, we investigated the bona fide
nature of the sales made by Hiep Thanh
and Acom for these new shipper
reviews. We found that the new shipper
sales by Hiep Thanh and Acom were
made on a bona fide basis. Based on our
investigation into the bona fide nature
of the sales, the questionnaire responses
submitted by Hiep Thanh and Acom,
and our verification of Hiep Thanh, as
well the companies’ eligibility for
separate rates (see Separate Rates
Determination section above), we
preliminarily determine that Hiep
Thanh and Acom have met the
requirements to qualify as new shippers
during this POR. Therefore, for the
purposes of these preliminary results of
review, we are treating Hiep Thanh and
Acom’s sales of subject merchandise to
the United States as appropriate
transactions for these new shipper
reviews.4
Surrogate Country
When the Department is investigating
imports from an NME country, section
773(c)(1) of the Act directs it to base NV,
in most circumstances, on the NME
producer’s factors of production
(‘‘FOPs’’), valued in a surrogate market
economy country or countries
considered to be appropriate by the
Department. In accordance with section
773(c)(4) of the Act, in valuing the
FOPs, the Department shall utilize, to
the extent possible, the prices or costs
of FOPs in one or more market economy
countries that are: (1) at a level of
economic development comparable to
that of the NME country; and (2)
significant producers of comparable
merchandise.
4 For more detailed discussion of this issue,
please see Memorandum from Alan Ray, Case
Analyst, Office 9, through Alex Villanueva, Program
Manager, Office 9: Bona Fide Nature of the Sale in
the Third Antidumping Duty New Shipper Reviews
of Certain Frozen Fish Fillets from the Socialist
Republic of Vietnam: Hiep Thanh and Acom.,
(January 16, 2009).
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The Department determined that
Bangladesh, Pakistan, India, Sri Lanka,
Philippines and Indonesia are countries
comparable to Vietnam in terms of
economic development.5 Moreover, it is
the Department’s practice to select an
appropriate surrogate country based on
the availability and reliability of data
from the countries. See Department
Policy Bulletin No. 04.1: Non–Market
Economy Surrogate Country Selection
Process (March 1, 2004) (‘‘Surrogate
Country Policy Bulletin’’). Since the
less–than-fair value investigation, we
have determined that Bangladesh is
comparable to Vietnam in terms of
economic development and has
surrogate value data that is available
and reliable. In this proceeding, we
received no comments regarding
surrogate country selection. Since no
information has been provided in this
review that would warrant a change in
the Department’s selection of
Bangladesh from the prior segments, we
continue to find that Bangladesh is the
appropriate surrogate country here
because Bangladesh is at a similar level
of economic development pursuant to
section 773(c)(4) of the Act, is a
significant producer of comparable
merchandise, and has reliable, publicly
available data representing a broad–
market average. See Memorandum to
the File, through James C. Doyle, Office
Director, Office 9, Import
Administration, from Matthew Renkey,
Senior Case Analyst, Subject: Fourth
Antidumping Duty Administrative
Review and New Shipper Reviews of
Certain Frozen Fish Fillets from the
Socialist Republic of Vietnam: Selection
of a Surrogate Country (September 2,
2008).
In accordance with 19 CFR
351.301(c)(3)(ii), for the final results in
an antidumping administrative review,
interested parties may submit publicly
available information to value FOPs
within 20 days after the date of
publication of these preliminary results.
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Affiliation
Section 771(33) of the Act provides
that:
The following persons shall be
considered to be affiliated’ or affiliated
persons’:
(A) Members of a family, including
brothers and sisters (whether by the
whole or half blood), spouse,
ancestors, and lineal descendants;
(B) Any officer of director of an
5 See Memorandum from Kelley Parkhill, Acting
Director, Office of Policy, to Alex Villanueva,
Program Manager, AD/CVD Enforcement, Office 9:
New Shipper Reviews of Certain Frozen Fish Fillets
from the Socialist Republic of Vietnam: List of
Surrogate Countries, dated January 15, 2009.
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organization and such organization;
(C) Partners;
(D) Employer and employee;
(E) Any person directly or indirectly
owning, controlling, or holding
with power to vote, 5 percent or
more of the outstanding voting
stock or shares of any organization
and such organization;
(F) Two or more persons directly or
indirectly controlling, controlled
by, or under common control with,
any person;
(G) Any person who controls any
other person and such other person.
Additionally, section 771(33) of the
Act stipulates that: ‘‘For purposes of this
paragraph, a person shall be considered
to control another person if the person
is legally or operationally in a position
to exercise restrain or direction over the
other person.’’
We preliminarily find that the Hiep
Thanh and HTVN Seafood Inc.
(‘‘HTVN’’) to be affiliated parties within
the meaning of section 771(33)(E) of the
Act, due to common ownership. Hiep
Thanh owns the majority of HTVN. See
Hiep Thanh Verification Report at 20. In
addition, two of Hiep Thanh’s
shareholders are the other owners of
HVTN. Id. Therefore, for these
preliminary results we will use the
constructed export price (‘‘CEP’’) price
paid to HTVN, the U.S. importer, by its
first unaffiliated U.S. customer of
subject merchandise during the POR.
U.S. Price
A. Constructed Export Price
For Hiep Thanh, we based the U.S.
price on CEP in accordance with section
772(b) of the Act, for sales made on
behalf of Hiep Thanh by its U.S.
affiliate, HTVN, to unaffiliated
purchasers. We based CEP on packed,
delivered or ex–warehouse prices to the
first unaffiliated purchaser in the United
States. Where appropriate, we made
deductions from the starting price (gross
unit price) for foreign movement
expenses, international movement
expenses, U.S. movement expenses, and
appropriate selling adjustments, in
accordance with section 772(c)(2)(A) of
the Act. In accordance with section
772(d)(1) of the Act, we also deducted
those selling expenses associated with
economic activities occurring in the
United States. We deducted, where
appropriate, commissions, inventory
carrying costs, credit expenses, and
indirect selling expenses.
B. Export Price
In accordance with section 772(a) of
the Act, we calculated the EP for sales
to the United States for Acom because
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the first sale to an unaffiliated party was
made before the date of importation and
the use of constructed EP (‘‘CEP’’) was
not otherwise warranted. We calculated
EP based on the price to unaffiliated
purchasers in the United States.
During the POR, Hiep Thanh made
additional shipments of frozen fish
fillets to the United States, beyond the
reported CEP sales. Based on a request
by the Department and prior to
verification, Hiep Thanh reported these
additional shipments of subject
merchandise in a revised U.S. sales
database in its October 29, 2008,
supplemental questionnaire response.
In our request for these additional
sales we cited Article 303(3)6 of the
North American Free Trade Agreement
and 19 CFR 181.53(a)(1)(i)7 as support
for requesting that Hiep Thanh report
these additional shipments. In its
October 29, 2008, questionnaire
response, Hiep Thanh argued that these
additional shipments should not be
considered in the margin calculation
because any merchandise stored in bond
in the United States which is then
exported to another NAFTA country
should not be subject to review. See
Hiep Thanh’s October 29, 2008,
Questionnaire Response at 5–6.
According to Hiep Thanh, to the best of
its knowledge, these additional
shipments were to be re–exported to
another NAFTA country. Id. at 1–6. In
reviewing the CBP entry documents
collected from CBP and those examined
at verification, we noted that some of
these additional sales of subject
merchandise from Hiep Thanh to
certain unaffiliated U.S. importers were
entered and classified as entries for
consumption, while for other entries,
we could not determine whether they
were for consumption. Therefore, where
POR subject merchandise entries
exported by Hiep Thanh were classified
6 Article 303(3) of the NAFTA requires that if a
good is imported pursuant to a duty deferral
program and subsequently exported to the territory
of another Party, the exporting Party shall assess
customs duties as if the exported good had been
withdrawn for domestic consumption. Customs
treats bonded warehouses as duty deferral programs
in a NAFTA context. See 19 CFR 181.53(a)(1)(ii).
7 In Entry of Certain Steel Products, 68 FR 13835
(March 21, 2003), Customs stated that ‘‘under 19
CFR 181.53, goods withdrawn from a U.S. dutydeferral program (such as a Customs bonded
warehouse) for exportation to Canada must be
treated as entered or withdrawn for consumption.’’
In CTL Plate from Italy we concluded that
temporary import bond entries of subject
merchandise to the United States and re-exported
to a NAFTA party should be considered entries for
consumption and, should properly be included in
the margin calculation. See Notice of Final
Determination of Sales at Less Than Fair Value:
Certain Cut-To-Length Carbon Quality Steel Plate
Products from Italy, 64 FR 73234 (December 29,
1999) (‘‘CTL Plate from Italy’’).
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as ‘‘for consumption,’’ we will include
those sales in the margin calculation for
these preliminary results.
For the additional sales of subject
merchandise which do not appear as
entries for consumption, we will gather
additional information (e.g., CBP entry
documentation) after these preliminary
results and continue to examine this
issue for the final results. For the final
results, we will consider whether
Article 303(3) of NAFTA applies to
these additional shipments.
In accordance with section 772(c) of
the Act, as appropriate, we deducted
from the starting price to unaffiliated
purchasers foreign inland freight and
brokerage and handling. We calculated
EP based on the price to unaffiliated
purchases entered into the United
States. In accordance with section
772(c) of the Act, as appropriate, we
deducted from the starting price to
unaffiliated purchasers foreign inland
freight and brokerage and handling. We
have reviewed each of these services
and expenses reported by Acom and
Hiep Thanh and find that they were
provided by an NME vendor or paid for
using Vietnamese currency. Thus, we
based the deduction of these movement
charges on surrogate values. See
Memorandum to the File through Alex
Villanueva, Program Manager, Office 9
from Alan Ray, Case Analyst, Office 9:
Antidumping Duty New Shipper
Reviews of Certain Frozen Fish Fillets
from the Socialist Republic of Vietnam:
Surrogate Values for the Preliminary
Results, (January 16, 2008) (‘‘Surrogate
Values Memo’’) for details regarding the
surrogate values for movement
expenses.
sroberts on PROD1PC70 with NOTICES
Normal Value
1. Methodology
Section 773(c)(1)(B) of the Act
provides that the Department shall
determine the NV using a FOP
methodology if the merchandise is
exported from an NME country and the
information does not permit the
calculation of NV using home–market
prices, third–country prices, or
constructed value under section 773(a)
of the Act. The Department bases NV on
the FOPs because the presence of
government controls on various aspects
of NMEs renders price comparisons and
the calculation of production costs
invalid under the Department’s normal
methodologies.
Section 773(c)(1) of the Act provides
that the Department shall determine the
NV using a factors–of-production
methodology if: (1) the merchandise is
exported from a non–market economy
country; and (2) the information does
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not permit the calculation of NV using
home–market prices, third–country
prices, or constructed value under
section 773(a) of the Act.
Although Hiep Thanh reported the
inputs used to produce the main input
to the processing stage (food–sized fish),
for the purposes of these preliminary
results, we are not valuing those inputs
when calculating the NV. In the past,
the Department has used an
intermediate input methodology when
the accuracy of the normal value based
on an integrated FOP calculation would
be sacrificed, (e.g., Fish Fillets from
Vietnam8 and Garlic from China9). In
this case, because a substantial number
of farming FOPs were significantly
revised and numerous other factors used
in the production process were not
reported,10 valuing Hiep Thanh’s
farming FOPs would be less reliable and
compromise the accuracy of the NV.
Instead, we preliminary find that
valuing the intermediate input, food–
size fish, would be more accurate in this
case. As a result, we will begin the NV
calculation at the processing stage and
apply a surrogate value for whole, food–
sized fish.
Acom reported the inputs beginning
with the food–size fish because it is
only a processor of fish fillets and had
no hatchery or farming FOPs during the
POR. Therefore, it only reported FOPs
associated with the processing and
packing stages of production. As such,
the Department will account for all of
Acom’s reported inputs in the normal
value calculation.
2. Factor Valuations
In accordance with section 773(c) of
the Act, we calculated NV based on
FOPs reported by Hiep Thanh and
Acom during the POR. To calculate NV,
we multiplied the reported per–unit
factor–consumption rates by publicly
available Bangladeshi surrogate values.
In selecting the surrogate values, we
8 See Notice of Preliminary Determination of
Sales at Less Than Fair Value, Affirmative
Preliminary Determination of Critical
Circumstances and Postponement of Final
Determination: Certain Frozen Fish Fillets From the
Socialist Republic of Vietnam, 68 FR 4986 (January
31, 2003); Notice of Final Antidumping Duty
Determination of Sales at Less Than Fair Value and
Affirmative Critical Circumstances: Certain Frozen
Fish Fillets from the Socialist Republic of Vietnam,
68 FR 37116 (June 23, 2003), and accompanying
Issues and Decision Memorandum, at Comment 3.
9 See Fresh Garlic from the People’s Republic of
China: Final Results of Antidumping Duty
Administrative Review, 70 FR 34082 (June 13,
2005), Fresh Garlic from the People’s Republic of
China: Final Results and Partial Rescission of
Antidumping Duty Administrative Review and
Final Results of New Shipper Reviews, 71 FR 26329
26330 (May 4, 2006), and accompanying Issues and
Decision Memorandum, at Comment 1.
10 See Hiep Thanh Verification Report at 2.
PO 00000
Frm 00011
Fmt 4703
Sfmt 4703
4923
considered the quality, specificity, and
contemporaneity of the data. As
appropriate, we adjusted input prices by
including freight costs to make them
delivered prices. Specifically, we added
to Bangladeshi import surrogate values
a surrogate freight cost using the shorter
of the reported distance from the
domestic supplier to the factory of
production or the distance from the
nearest seaport to the factory of
production where appropriate. This
adjustment is in accordance with the
Court of Appeals for the Federal
Circuit’s decision in Sigma Corp. v.
United States, 117 F. 3d 1401, 1407–
1408 (Fed. Cir. 1997). Where we did not
use Bangladeshi Import Statistics, we
calculated freight based on the reported
distance from the supplier to the
factory.
It is the Department’s practice to
calculate price index adjustors to inflate
or deflate, as appropriate, surrogate
values that are not contemporaneous
with the POR using the wholesale price
index (‘‘WPI’’) for the subject country.
See Notice of Preliminary Determination
of Sales at Less Than Fair Value and
Postponement of Final Determination:
Hand Trucks and Certain Parts Thereof
from the People’s Republic of China, 69
FR 29509 (May 24, 2004). However, in
this case, a WPI was not available for
Bangladesh. Therefore, where publicly
available information contemporaneous
with the POI with which to value factors
could not be obtained, surrogate values
were adjusted using the Consumer Price
Index rate for Bangladesh, or the WPI
for India or Indonesia (for certain
surrogate values where Bangladeshi data
could not be obtained), as published in
the International Financial Statistics of
the International Monetary Fund.
Bangladeshi and other surrogate
values denominated in foreign
currencies were converted to USD using
the applicable average exchange rate
based on exchange rate data from the
Department’s website.
For further details regarding the
surrogate values used for these
preliminary results, see the Surrogate
Values Memo.
Preliminary Results of the Review
The Department has determined that
the following preliminary dumping
margins exist for the period August 1,
2007, through January 31, 2008:
CERTAIN FROZEN FISH FILLETS FROM
VIETNAM
Manufacturer/Exporter
Hiep Thanh ...................
E:\FR\FM\28JAN1.SGM
28JAN1
Weighted–Average
Margin (Percent)
0.00
4924
Federal Register / Vol. 74, No. 17 / Wednesday, January 28, 2009 / Notices
presentations will be limited to issues
raised in the briefs. If we receive a
request for a hearing, we plan to hold
Weighted–Average the hearing seven days after the
Manufacturer/Exporter
Margin (Percent)
deadline for submission of the rebuttal
briefs at the U.S. Department of
Acom .............................
0.00 Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230.
Disclosure
The Department intends to issue the
final results of these new shipper
The Department will disclose to
reviews, which will include the results
parties of this proceeding the
of its analysis raised in any such
calculations performed in reaching the
comments, within 90 days of
preliminary results within five days of
publication of these preliminary results,
the date of publication of this notice in
pursuant to section 751(a)(2)(B)(iv) of
accordance with 19 CFR 351.224(b).
the Act.
Comments
Assessment Rates
In accordance with 19 CFR
Upon completion of the final results,
351.301(c)(3)(ii), for the final results of
pursuant to 19 CFR 351.212(b), the
this administrative review, interested
Department will determine, and CBP
parties may submit publicly available
shall assess, antidumping duties on all
information to value FOPs within 20
appropriate entries on a per–unit
days after the date of publication of
basis.12 The Department intends to issue
these preliminary results. Interested
assessment instructions to CBP 15 days
parties must provide the Department
after the date of publication of the final
with supporting documentation for the
results of review. If these preliminary
publicly available information to value
results are adopted in our final results
each FOP. Additionally, in accordance
of review, the Department shall
with 19 CFR 351.301(c)(1), for the final
determine, and CBP shall assess,
results of this administrative review,
antidumping duties on all appropriate
interested parties may submit factual
entries. Pursuant to 19 CFR
information to rebut, clarify, or correct
351.212(b)(1), we will calculate
factual information submitted by an
importer–specific (or customer) per–
interested party less than ten days
unit duty assessment rates. We will
before, on, or after, the applicable
instruct CBP to assess antidumping
deadline for submission of such factual
duties on all appropriate entries covered
information. However, the Department
by this review if any importer–specific
notes that 19 CFR 351.301(c)(1) permits
assessment rate calculated in the final
new information only insofar as it
results of this is above de minimis.
rebuts, clarifies, or corrects information
recently placed on the record.11
Cash–Deposit Requirements
Interested parties may submit case
The following cash deposit
briefs and/or written comments no later
requirements will be effective upon
than 30 days after the date of
publication of the final results of this
publication of these preliminary results
new shipper review for all shipments of
of this new shipper review. See 19 CFR
subject merchandise from Hiep Thanh
351.309(c)(ii). Rebuttal briefs and
or Acom entered, or withdrawn from
rebuttals to written comments, limited
warehouse, for consumption on or after
to issues raised in such briefs or
the publication date, as provided for by
comments, may be filed no later than 5
section 751(a)(2)(C) of the Act: (1) for
days after the deadline for submitting
subject merchandise produced and
the case briefs. See 19 CFR 351.309(d).
The Department requests that interested exported by Hiep Thanh or produced
and exported Acom, the cash deposit
parties provide an executive summary
rate will be zero; (2) for subject
of each argument contained within the
merchandise exported by Hiep Thanh or
case briefs and rebuttal briefs.
Acom but not manufactured by Hiep
Any interested party may request a
hearing within 30 days of publication of Thanh or Acom, the cash deposit rate
will continue to be the Vietnam–wide
these preliminary results. See 19 CFR
351.310(c). Requests should contain the rate (i.e., 63.88 percent); and (3) for
following information: (1) The party’s
12 We divided the total dumping margins
name, address, and telephone number;
(calculated as the difference between NV and EP or
(2) the number of participants; and (3)
CEP) for each importer by the total quantity of
a list of the issues to be discussed. Oral
subject merchandise sold to that importer during
sroberts on PROD1PC70 with NOTICES
CERTAIN FROZEN FISH FILLETS FROM
VIETNAM—Continued
11 See
Glycine from the People’s Republic of
China: Final Results of Antidumping Duty
Administrative Review and Final Rescission, in Part
72 FR 58809 (October 17, 2007), and accompanying
Issues and Decision Memorandum at Comment 2.
VerDate Nov<24>2008
17:30 Jan 27, 2009
Jkt 217001
the POR to calculate a per-unit assessment amount.
We will direct CBP to assess importer-specific
assessment rates based on the resulting per-unit
(i.e., per-kilogram) rates by the weight in kilograms
of each entry of the subject merchandise during the
POR.
PO 00000
Frm 00012
Fmt 4703
Sfmt 4703
subject merchandise manufactured by
Hiep Thanh or Acom, but exported by
any other party, the cash deposit rate
will be the rate applicable to the
exporter. If the cash deposit rate
calculated in the final results is zero or
de minimis, no cash deposit will be
required for those specific producer–
exporter combinations. These cash
deposit requirements, when imposed,
shall remain in effect until further
notice.
Notification to Importers
This notice serves as a preliminary
reminder to importers of their
responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this POR.
Failure to comply with this requirement
could result in the Secretary’s
presumption that reimbursement of
antidumping duties occurred and the
subsequent assessment of double
antidumping duties.
We are issuing and publishing this
determination in accordance with
sections 751(a)(2)(B) and 777(i) of the
Act, and 19 CFR 351.214(h) and
351.221(b)(4.
Dated: January 16, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E9–1722 Filed 1–27–09; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
A–552–802
Certain Frozen Warmwater Shrimp
from the Socialist Republic of Vietnam:
Preliminary Results of the Second New
Shipper Review
AGENCY: Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: On February 1, 2005, the
Department of Commerce (‘‘the
Department’’) published in the Federal
Register the antidumping duty order on
certain frozen warmwater shrimp from
the Socialist Republic of Vietnam
(‘‘Vietnam’’). See Notice of Amended
Final Determination of Sales at Less
Than Fair Value and Antidumping Duty
Order: Certain Frozen Warmwater
Shrimp From the Socialist Republic of
Vietnam, 70 FR 5152 (February 1, 2005)
(‘‘VN Shrimp Order’’). The Department
is conducting a new shipper review
(‘‘NSR’’) of the VN Shrimp Order,
covering the period of review (‘‘POR’’)
E:\FR\FM\28JAN1.SGM
28JAN1
Agencies
[Federal Register Volume 74, Number 17 (Wednesday, January 28, 2009)]
[Notices]
[Pages 4920-4924]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-1722]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
A-552-801
Certain Frozen Fish Fillets from the Socialist Republic of
Vietnam: Preliminary Results of the Third New Shipper Reviews
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On February 1, 2005, the Department published in the Federal
Register the antidumping duty order on certain frozen fish fillets from
the Socialist Republic of Vietnam (``Vietnam''). See Notice of
Antidumping Duty Order: Certain Frozen Fish Fillets From the Socialist
Republic of Vietnam, 68 FR 47909 (August 12, 2003) (``Order''). The
Department is conducting new shipper reviews (``NSR'') of the Order,
covering the period of review (``POR'') of August 1, 2007, through
January 31, 2008. If these preliminary results are adopted in our final
results of review, we will instruct U.S. Customs and Border Protection
(``CBP'') to assess antidumping duties on entries of subject
merchandise during the POR for which the importer-specific assessment
rates are above de minimis.
EFFECTIVE DATE: January 28, 2009.
FOR FURTHER INFORMATION CONTACT: Alan Ray or Emeka Chukwudebe, AD/CVD
Operations, Office 9, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington DC 20230; telephone: (202) 482-5403
or (202) 482-0219, respectively.
SUPPLEMENTARY INFORMATION:
General Background
On February 25, 2008, pursuant to section 751(a)(2)(B)(i) of the
Tariff Act of 1930, as amended (``the Act''), and 19 CFR 351.214(c),
the Department received NSR requests from Asia Commerce Fisheries Joint
Stock Company (``Acom'') and Hiep Thanh Seafood Joint Stock Company
(``Hiep Thanh). Both companies certified that they are the producers
and exporters of the subject merchandise upon which the requests were
based.
On April 7, 2008, the Department initiated antidumping duty new
shipper reviews on frozen fish fillets from Vietnam covering the two
companies. See Certain Frozen Fish Fillets from the Socialist Republic
of Vietnam: Initiation of Antidumping Duty New Shipper Reviews, 72 FR
54428 (April 7, 2008).
On April 14, 2008, the Department issued original questionnaires to
both Hiep Thanh and Acom. Between May and October 2008, Hiep Thanh and
Acom submitted responses to the original sections A, C, and D
questionnaires and supplemental sections A, C, and D questionnaires.
Extension of Time Limits
On September 25, 2008, the Department extended the deadline for the
preliminary results of this review by 120 days, to January 20, 2009.
See Certain Frozen Fish Fillets from the Socialist Republic of Vietnam:
Extension of Time Limits for the Preliminary Results of the New Shipper
Reviews, 73 FR 55496 (September 25, 2008)\1\ (``Extension'').
---------------------------------------------------------------------------
\1\ Where a statutory deadline falls on a weekend, federal
holiday, or any other day when the Department is closed, the
Department will continue its longstanding practice of reaching our
determination on the next business day. In this instance, the
preliminary results will be released no later than January 21, 2009.
---------------------------------------------------------------------------
Surrogate Country and Surrogate Values
On December 12, 2008, the Department sent interested parties a
letter requesting comments on surrogate country selection and
information pertaining to valuing factors of production (``FOP''). On
January 5, 2009, Petitioners\2\ submitted surrogate value data. No
other party submitted surrogate country or surrogate value data.
---------------------------------------------------------------------------
\2\ The Catfish Farmers of America and individual U.S. catfish
processors, America's Catch, Consolidated Catfish Companies, LLC dba
Country Select Catfish, Delta Pride Catfish, Inc., Harvest Select
Catfish, Inc., Heartland Catfish Company, Pride of the Pond, Simmons
Farm Raised Catfish, Inc., and Southern Pride Catfish Company LLC
(collectively, ``Petitioners'').
---------------------------------------------------------------------------
Verification
Pursuant to 19 CFR 351.307(b)(iv), we conducted verification of the
sales and factors of production (``FOP'') for Hiep Thanh between
November 12-20, 2008. See Memorandum to the File from Alan Ray, Case
Analyst through Alex Villanueva, Program Manager, Verification of the
Sales and Factors Response of Hiep Thanh in the Antidumping New Shipper
Review of Certain Frozen Fish Fillets from the Socialist Republic of
Vietnam (``Vietnam''), dated December 12, 2008 (``Hiep Thanh
Verification Report'').
Scope of the Order
The product covered by this Order is frozen fish fillets, including
regular, shank, and strip fillets and portions thereof, whether or not
breaded or marinated, of the species Pangasius Bocourti, Pangasius
Hypophthalmus (also known as Pangasius Pangasius), and Pangasius
Micronemus. Frozen fish fillets are lengthwise cuts of whole fish. The
fillet products covered by the scope include boneless fillets with the
belly flap intact (``regular'' fillets), boneless fillets with the
belly flap removed (``shank'' fillets), boneless shank fillets cut into
strips (``fillet strips/finger''), which include fillets cut into
strips, chunks, blocks, skewers, or any other shape. Specifically
excluded from the scope are frozen whole fish (whether or not dressed),
frozen steaks, and frozen belly-flap nuggets. Frozen whole dressed fish
are deheaded, skinned, and eviscerated. Steaks are bone-in, cross-
section cuts of dressed fish. Nuggets are the belly-flaps. The subject
merchandise will be hereinafter referred to as frozen ``basa'' and
``tra'' fillets, which are the Vietnamese common names for these
species of fish. These products are classifiable under tariff article
codes 1604.19.4000, 1604.19.5000, 0305.59.4000, 0304.29.6033 (Frozen
Fish Fillets of the species Pangasius including basa and tra) of the
Harmonized Tariff Schedule of the United States (``HTSUS'').\3\ This
[[Page 4921]]
Order covers all frozen fish fillets meeting the above specification,
regardless of tariff classification. Although the HTSUS subheading is
provided for convenience and customs purposes, our written description
of the scope of the Order is dispositive.
---------------------------------------------------------------------------
\3\ Until July 1, 2004, these products were classifiable under
tariff article codes 0304.20.60.30 (Frozen Catfish Fillets),
0304.20.60.96 (Frozen Fish Fillets, NESOI), 0304.20.60.43 (Frozen
Freshwater Fish Fillets) and 0304.20.60.57 (Frozen Sole Fillets) of
the HTSUS. Until February 1, 2007, these products were classifiable
under tariff article code 0304.20.60.33 (Frozen Fish Fillets of the
species Pangasius including basa and tra) of the HTSUS.
---------------------------------------------------------------------------
Non-Market Economy Country Status
In every case conducted by the Department involving Vietnam,
Vietnam has been treated as a non-market (``NME'') country. In
accordance with section 771(18)(C)(i) of the Act, any determination
that a foreign country is an NME country shall remain in effect until
revoked by the administering authority. See Certain Frozen Fish Fillets
from the Socialist Republic of Vietnam: Final Results of Antidumping
Duty Adminstrative Review and Partial Rescission, 73 FR 15479 (March
24, 2008) (``3\rd\ AR Final Results''). None of the parties to this
proceeding have contested such treatment. Accordingly, we calculated
normal value (``NV'') in accordance with section 773(c) of the Act,
which applies to NME countries.
Separate Rate Determinations
A designation as an NME remains in effect until it is revoked by
the Department. See section 771(18)(C) of the Act. Accordingly, there
is a rebuttable presumption that all companies within Vietnam are
subject to government control and, thus, should be assessed a single
antidumping duty rate. It is the Department's standard policy to assign
all exporters of the merchandise subject to review in NME countries a
single rate unless an exporter can affirmatively demonstrate an absence
of government control, both in law (de jure) and in fact (de facto),
with respect to exports. To establish whether a company is sufficiently
independent to be entitled to a separate, company-specific rate, the
Department analyzes each exporting entity in an NME country under the
test established in the Final Determination of Sales at Less than Fair
Value: Sparklers from the People's Republic of China, 56 FR 20588 (May
6, 1991) (``Sparklers''), as amplified by the Notice of Final
Determination of Sales at Less Than Fair Value: Silicon Carbide from
the People's Republic of China, 59 FR 22585 (May 2, 1994) (``Silicon
Carbide'').
A. Absence of De Jure Control
The Department considers the following de jure criteria in
determining whether an individual company may be granted a separate
rate: (1) an absence of restrictive stipulations associated with an
individual exporter's business and export licenses; and (2) any
legislative enactments decentralizing control of companies.
In this review, Hiep Thanh and Acom submitted complete responses to
the separate rates section of the Department's NME questionnaire. The
evidence submitted by Hiep Thanh and Acom includes government laws and
regulations on corporate ownership, business licenses, and narrative
information regarding the company's operations and selection of
management. The evidence provided by Hiep Thanh and Acom supports a
finding of a de jure absence of government control over their export
activities. We have no information in this proceeding that would cause
us to reconsider this determination. Thus, we believe that the evidence
on the record supports a preliminary finding of an absence of de jure
government control based on: (1) an absence of restrictive stipulations
associated with the exporter's business license; and (2) the legal
authority on the record decentralizing control over the respondents.
B. Absence of De Facto Control
The absence of de facto government control over exports is based on
whether the Respondent: (1) sets its own export prices independent of
the government and other exporters; (2) retains the proceeds from its
export sales and makes independent decisions regarding the disposition
of profits or financing of losses; (3) has the authority to negotiate
and sign contracts and other agreements; and (4) has autonomy from the
government regarding the selection of management. See Silicon Carbide,
59 FR at 22587; Sparklers, 56 FR at 20589; see also Notice of Final
Determination of Sales at Less Than Fair Value: Furfuryl Alcohol from
the People's Republic of China, 60 FR 22544, 22545 (May 8, 1995).
In their questionnaire responses, Hiep Thanh and Acom submitted
evidence indicating an absence of de facto government control over
their export activities. Specifically, this evidence indicates that:
(1) each company sets its own export prices independent of the
government and without the approval of a government authority; (2) each
company retains the proceeds from its sales and makes independent
decisions regarding the disposition of profits or financing of losses;
(3) each company has a general manager, branch manager or division
manager with the authority to negotiate and bind the company in an
agreement; (4) the general manager is selected by the board of
directors or company employees, and the general manager appoints the
deputy managers and the manager of each department; and (5) there is no
restriction on any of the companies' use of export revenues. Therefore,
the Department preliminarily finds that Hiep Thanh and Acom have
established prima facie that they qualify for separate rates under the
criteria established by Silicon Carbide and Sparklers.
New Shipper Review Bona Fide Analysis
Consistent with the Department's practice, we investigated the bona
fide nature of the sales made by Hiep Thanh and Acom for these new
shipper reviews. We found that the new shipper sales by Hiep Thanh and
Acom were made on a bona fide basis. Based on our investigation into
the bona fide nature of the sales, the questionnaire responses
submitted by Hiep Thanh and Acom, and our verification of Hiep Thanh,
as well the companies' eligibility for separate rates (see Separate
Rates Determination section above), we preliminarily determine that
Hiep Thanh and Acom have met the requirements to qualify as new
shippers during this POR. Therefore, for the purposes of these
preliminary results of review, we are treating Hiep Thanh and Acom's
sales of subject merchandise to the United States as appropriate
transactions for these new shipper reviews.\4\
---------------------------------------------------------------------------
\4\ For more detailed discussion of this issue, please see
Memorandum from Alan Ray, Case Analyst, Office 9, through Alex
Villanueva, Program Manager, Office 9: Bona Fide Nature of the Sale
in the Third Antidumping Duty New Shipper Reviews of Certain Frozen
Fish Fillets from the Socialist Republic of Vietnam: Hiep Thanh and
Acom., (January 16, 2009).
---------------------------------------------------------------------------
Surrogate Country
When the Department is investigating imports from an NME country,
section 773(c)(1) of the Act directs it to base NV, in most
circumstances, on the NME producer's factors of production (``FOPs''),
valued in a surrogate market economy country or countries considered to
be appropriate by the Department. In accordance with section 773(c)(4)
of the Act, in valuing the FOPs, the Department shall utilize, to the
extent possible, the prices or costs of FOPs in one or more market
economy countries that are: (1) at a level of economic development
comparable to that of the NME country; and (2) significant producers of
comparable merchandise.
[[Page 4922]]
The Department determined that Bangladesh, Pakistan, India, Sri
Lanka, Philippines and Indonesia are countries comparable to Vietnam in
terms of economic development.\5\ Moreover, it is the Department's
practice to select an appropriate surrogate country based on the
availability and reliability of data from the countries. See Department
Policy Bulletin No. 04.1: Non-Market Economy Surrogate Country
Selection Process (March 1, 2004) (``Surrogate Country Policy
Bulletin''). Since the less-than-fair value investigation, we have
determined that Bangladesh is comparable to Vietnam in terms of
economic development and has surrogate value data that is available and
reliable. In this proceeding, we received no comments regarding
surrogate country selection. Since no information has been provided in
this review that would warrant a change in the Department's selection
of Bangladesh from the prior segments, we continue to find that
Bangladesh is the appropriate surrogate country here because Bangladesh
is at a similar level of economic development pursuant to section
773(c)(4) of the Act, is a significant producer of comparable
merchandise, and has reliable, publicly available data representing a
broad-market average. See Memorandum to the File, through James C.
Doyle, Office Director, Office 9, Import Administration, from Matthew
Renkey, Senior Case Analyst, Subject: Fourth Antidumping Duty
Administrative Review and New Shipper Reviews of Certain Frozen Fish
Fillets from the Socialist Republic of Vietnam: Selection of a
Surrogate Country (September 2, 2008).
---------------------------------------------------------------------------
\5\ See Memorandum from Kelley Parkhill, Acting Director, Office
of Policy, to Alex Villanueva, Program Manager, AD/CVD Enforcement,
Office 9: New Shipper Reviews of Certain Frozen Fish Fillets from
the Socialist Republic of Vietnam: List of Surrogate Countries,
dated January 15, 2009.
---------------------------------------------------------------------------
In accordance with 19 CFR 351.301(c)(3)(ii), for the final results
in an antidumping administrative review, interested parties may submit
publicly available information to value FOPs within 20 days after the
date of publication of these preliminary results.
Affiliation
Section 771(33) of the Act provides that:
The following persons shall be considered to be affiliated' or
affiliated persons':
(A) Members of a family, including brothers and sisters (whether by
the whole or half blood), spouse, ancestors, and lineal descendants;
(B) Any officer of director of an organization and such
organization;
(C) Partners;
(D) Employer and employee;
(E) Any person directly or indirectly owning, controlling, or
holding with power to vote, 5 percent or more of the outstanding voting
stock or shares of any organization and such organization;
(F) Two or more persons directly or indirectly controlling,
controlled by, or under common control with, any person;
(G) Any person who controls any other person and such other person.
Additionally, section 771(33) of the Act stipulates that: ``For
purposes of this paragraph, a person shall be considered to control
another person if the person is legally or operationally in a position
to exercise restrain or direction over the other person.''
We preliminarily find that the Hiep Thanh and HTVN Seafood Inc.
(``HTVN'') to be affiliated parties within the meaning of section
771(33)(E) of the Act, due to common ownership. Hiep Thanh owns the
majority of HTVN. See Hiep Thanh Verification Report at 20. In
addition, two of Hiep Thanh's shareholders are the other owners of
HVTN. Id. Therefore, for these preliminary results we will use the
constructed export price (``CEP'') price paid to HTVN, the U.S.
importer, by its first unaffiliated U.S. customer of subject
merchandise during the POR.
U.S. Price
A. Constructed Export Price
For Hiep Thanh, we based the U.S. price on CEP in accordance with
section 772(b) of the Act, for sales made on behalf of Hiep Thanh by
its U.S. affiliate, HTVN, to unaffiliated purchasers. We based CEP on
packed, delivered or ex-warehouse prices to the first unaffiliated
purchaser in the United States. Where appropriate, we made deductions
from the starting price (gross unit price) for foreign movement
expenses, international movement expenses, U.S. movement expenses, and
appropriate selling adjustments, in accordance with section
772(c)(2)(A) of the Act. In accordance with section 772(d)(1) of the
Act, we also deducted those selling expenses associated with economic
activities occurring in the United States. We deducted, where
appropriate, commissions, inventory carrying costs, credit expenses,
and indirect selling expenses.
B. Export Price
In accordance with section 772(a) of the Act, we calculated the EP
for sales to the United States for Acom because the first sale to an
unaffiliated party was made before the date of importation and the use
of constructed EP (``CEP'') was not otherwise warranted. We calculated
EP based on the price to unaffiliated purchasers in the United States.
During the POR, Hiep Thanh made additional shipments of frozen fish
fillets to the United States, beyond the reported CEP sales. Based on a
request by the Department and prior to verification, Hiep Thanh
reported these additional shipments of subject merchandise in a revised
U.S. sales database in its October 29, 2008, supplemental questionnaire
response.
In our request for these additional sales we cited Article
303(3)\6\ of the North American Free Trade Agreement and 19 CFR
181.53(a)(1)(i)\7\ as support for requesting that Hiep Thanh report
these additional shipments. In its October 29, 2008, questionnaire
response, Hiep Thanh argued that these additional shipments should not
be considered in the margin calculation because any merchandise stored
in bond in the United States which is then exported to another NAFTA
country should not be subject to review. See Hiep Thanh's October 29,
2008, Questionnaire Response at 5-6. According to Hiep Thanh, to the
best of its knowledge, these additional shipments were to be re-
exported to another NAFTA country. Id. at 1-6. In reviewing the CBP
entry documents collected from CBP and those examined at verification,
we noted that some of these additional sales of subject merchandise
from Hiep Thanh to certain unaffiliated U.S. importers were entered and
classified as entries for consumption, while for other entries, we
could not determine whether they were for consumption. Therefore, where
POR subject merchandise entries exported by Hiep Thanh were classified
[[Page 4923]]
as ``for consumption,'' we will include those sales in the margin
calculation for these preliminary results.
---------------------------------------------------------------------------
\6\ Article 303(3) of the NAFTA requires that if a good is
imported pursuant to a duty deferral program and subsequently
exported to the territory of another Party, the exporting Party
shall assess customs duties as if the exported good had been
withdrawn for domestic consumption. Customs treats bonded warehouses
as duty deferral programs in a NAFTA context. See 19 CFR
181.53(a)(1)(ii).
\7\ In Entry of Certain Steel Products, 68 FR 13835 (March 21,
2003), Customs stated that ``under 19 CFR 181.53, goods withdrawn
from a U.S. duty-deferral program (such as a Customs bonded
warehouse) for exportation to Canada must be treated as entered or
withdrawn for consumption.'' In CTL Plate from Italy we concluded
that temporary import bond entries of subject merchandise to the
United States and re-exported to a NAFTA party should be considered
entries for consumption and, should properly be included in the
margin calculation. See Notice of Final Determination of Sales at
Less Than Fair Value: Certain Cut-To-Length Carbon Quality Steel
Plate Products from Italy, 64 FR 73234 (December 29, 1999) (``CTL
Plate from Italy'').
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For the additional sales of subject merchandise which do not appear
as entries for consumption, we will gather additional information
(e.g., CBP entry documentation) after these preliminary results and
continue to examine this issue for the final results. For the final
results, we will consider whether Article 303(3) of NAFTA applies to
these additional shipments.
In accordance with section 772(c) of the Act, as appropriate, we
deducted from the starting price to unaffiliated purchasers foreign
inland freight and brokerage and handling. We calculated EP based on
the price to unaffiliated purchases entered into the United States. In
accordance with section 772(c) of the Act, as appropriate, we deducted
from the starting price to unaffiliated purchasers foreign inland
freight and brokerage and handling. We have reviewed each of these
services and expenses reported by Acom and Hiep Thanh and find that
they were provided by an NME vendor or paid for using Vietnamese
currency. Thus, we based the deduction of these movement charges on
surrogate values. See Memorandum to the File through Alex Villanueva,
Program Manager, Office 9 from Alan Ray, Case Analyst, Office 9:
Antidumping Duty New Shipper Reviews of Certain Frozen Fish Fillets
from the Socialist Republic of Vietnam: Surrogate Values for the
Preliminary Results, (January 16, 2008) (``Surrogate Values Memo'') for
details regarding the surrogate values for movement expenses.
Normal Value
1. Methodology
Section 773(c)(1)(B) of the Act provides that the Department shall
determine the NV using a FOP methodology if the merchandise is exported
from an NME country and the information does not permit the calculation
of NV using home-market prices, third-country prices, or constructed
value under section 773(a) of the Act. The Department bases NV on the
FOPs because the presence of government controls on various aspects of
NMEs renders price comparisons and the calculation of production costs
invalid under the Department's normal methodologies.
Section 773(c)(1) of the Act provides that the Department shall
determine the NV using a factors-of-production methodology if: (1) the
merchandise is exported from a non-market economy country; and (2) the
information does not permit the calculation of NV using home-market
prices, third-country prices, or constructed value under section 773(a)
of the Act.
Although Hiep Thanh reported the inputs used to produce the main
input to the processing stage (food-sized fish), for the purposes of
these preliminary results, we are not valuing those inputs when
calculating the NV. In the past, the Department has used an
intermediate input methodology when the accuracy of the normal value
based on an integrated FOP calculation would be sacrificed, (e.g., Fish
Fillets from Vietnam\8\ and Garlic from China\9\). In this case,
because a substantial number of farming FOPs were significantly revised
and numerous other factors used in the production process were not
reported,\10\ valuing Hiep Thanh's farming FOPs would be less reliable
and compromise the accuracy of the NV. Instead, we preliminary find
that valuing the intermediate input, food-size fish, would be more
accurate in this case. As a result, we will begin the NV calculation at
the processing stage and apply a surrogate value for whole, food-sized
fish.
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\8\ See Notice of Preliminary Determination of Sales at Less
Than Fair Value, Affirmative Preliminary Determination of Critical
Circumstances and Postponement of Final Determination: Certain
Frozen Fish Fillets From the Socialist Republic of Vietnam, 68 FR
4986 (January 31, 2003); Notice of Final Antidumping Duty
Determination of Sales at Less Than Fair Value and Affirmative
Critical Circumstances: Certain Frozen Fish Fillets from the
Socialist Republic of Vietnam, 68 FR 37116 (June 23, 2003), and
accompanying Issues and Decision Memorandum, at Comment 3.
\9\ See Fresh Garlic from the People's Republic of China: Final
Results of Antidumping Duty Administrative Review, 70 FR 34082 (June
13, 2005), Fresh Garlic from the People's Republic of China: Final
Results and Partial Rescission of Antidumping Duty Administrative
Review and Final Results of New Shipper Reviews, 71 FR 26329 26330
(May 4, 2006), and accompanying Issues and Decision Memorandum, at
Comment 1.
\10\ See Hiep Thanh Verification Report at 2.
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Acom reported the inputs beginning with the food-size fish because
it is only a processor of fish fillets and had no hatchery or farming
FOPs during the POR. Therefore, it only reported FOPs associated with
the processing and packing stages of production. As such, the
Department will account for all of Acom's reported inputs in the normal
value calculation.
2. Factor Valuations
In accordance with section 773(c) of the Act, we calculated NV
based on FOPs reported by Hiep Thanh and Acom during the POR. To
calculate NV, we multiplied the reported per-unit factor-consumption
rates by publicly available Bangladeshi surrogate values. In selecting
the surrogate values, we considered the quality, specificity, and
contemporaneity of the data. As appropriate, we adjusted input prices
by including freight costs to make them delivered prices. Specifically,
we added to Bangladeshi import surrogate values a surrogate freight
cost using the shorter of the reported distance from the domestic
supplier to the factory of production or the distance from the nearest
seaport to the factory of production where appropriate. This adjustment
is in accordance with the Court of Appeals for the Federal Circuit's
decision in Sigma Corp. v. United States, 117 F. 3d 1401, 1407-1408
(Fed. Cir. 1997). Where we did not use Bangladeshi Import Statistics,
we calculated freight based on the reported distance from the supplier
to the factory.
It is the Department's practice to calculate price index adjustors
to inflate or deflate, as appropriate, surrogate values that are not
contemporaneous with the POR using the wholesale price index (``WPI'')
for the subject country. See Notice of Preliminary Determination of
Sales at Less Than Fair Value and Postponement of Final Determination:
Hand Trucks and Certain Parts Thereof from the People's Republic of
China, 69 FR 29509 (May 24, 2004). However, in this case, a WPI was not
available for Bangladesh. Therefore, where publicly available
information contemporaneous with the POI with which to value factors
could not be obtained, surrogate values were adjusted using the
Consumer Price Index rate for Bangladesh, or the WPI for India or
Indonesia (for certain surrogate values where Bangladeshi data could
not be obtained), as published in the International Financial
Statistics of the International Monetary Fund.
Bangladeshi and other surrogate values denominated in foreign
currencies were converted to USD using the applicable average exchange
rate based on exchange rate data from the Department's website.
For further details regarding the surrogate values used for these
preliminary results, see the Surrogate Values Memo.
Preliminary Results of the Review
The Department has determined that the following preliminary
dumping margins exist for the period August 1, 2007, through January
31, 2008:
Certain Frozen Fish Fillets from Vietnam
------------------------------------------------------------------------
Weighted-Average
Manufacturer/Exporter Margin (Percent)
------------------------------------------------------------------------
Hiep Thanh.......................................... 0.00
[[Page 4924]]
Acom................................................ 0.00
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Disclosure
The Department will disclose to parties of this proceeding the
calculations performed in reaching the preliminary results within five
days of the date of publication of this notice in accordance with 19
CFR 351.224(b).
Comments
In accordance with 19 CFR 351.301(c)(3)(ii), for the final results
of this administrative review, interested parties may submit publicly
available information to value FOPs within 20 days after the date of
publication of these preliminary results. Interested parties must
provide the Department with supporting documentation for the publicly
available information to value each FOP. Additionally, in accordance
with 19 CFR 351.301(c)(1), for the final results of this administrative
review, interested parties may submit factual information to rebut,
clarify, or correct factual information submitted by an interested
party less than ten days before, on, or after, the applicable deadline
for submission of such factual information. However, the Department
notes that 19 CFR 351.301(c)(1) permits new information only insofar as
it rebuts, clarifies, or corrects information recently placed on the
record.\11\
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\11\ See Glycine from the People's Republic of China: Final
Results of Antidumping Duty Administrative Review and Final
Rescission, in Part 72 FR 58809 (October 17, 2007), and accompanying
Issues and Decision Memorandum at Comment 2.
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Interested parties may submit case briefs and/or written comments
no later than 30 days after the date of publication of these
preliminary results of this new shipper review. See 19 CFR
351.309(c)(ii). Rebuttal briefs and rebuttals to written comments,
limited to issues raised in such briefs or comments, may be filed no
later than 5 days after the deadline for submitting the case briefs.
See 19 CFR 351.309(d). The Department requests that interested parties
provide an executive summary of each argument contained within the case
briefs and rebuttal briefs.
Any interested party may request a hearing within 30 days of
publication of these preliminary results. See 19 CFR 351.310(c).
Requests should contain the following information: (1) The party's
name, address, and telephone number; (2) the number of participants;
and (3) a list of the issues to be discussed. Oral presentations will
be limited to issues raised in the briefs. If we receive a request for
a hearing, we plan to hold the hearing seven days after the deadline
for submission of the rebuttal briefs at the U.S. Department of
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC
20230.
The Department intends to issue the final results of these new
shipper reviews, which will include the results of its analysis raised
in any such comments, within 90 days of publication of these
preliminary results, pursuant to section 751(a)(2)(B)(iv) of the Act.
Assessment Rates
Upon completion of the final results, pursuant to 19 CFR
351.212(b), the Department will determine, and CBP shall assess,
antidumping duties on all appropriate entries on a per-unit basis.\12\
The Department intends to issue assessment instructions to CBP 15 days
after the date of publication of the final results of review. If these
preliminary results are adopted in our final results of review, the
Department shall determine, and CBP shall assess, antidumping duties on
all appropriate entries. Pursuant to 19 CFR 351.212(b)(1), we will
calculate importer-specific (or customer) per-unit duty assessment
rates. 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 is above de
minimis.
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\12\ We divided the total dumping margins (calculated as the
difference between NV and EP or CEP) for each importer by the total
quantity of subject merchandise sold to that importer during the POR
to calculate a per-unit assessment amount. We will direct CBP to
assess importer-specific assessment rates based on the resulting
per-unit (i.e., per-kilogram) rates by the weight in kilograms of
each entry of the subject merchandise during the POR.
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Cash-Deposit Requirements
The following cash deposit requirements will be effective upon
publication of the final results of this new shipper review for all
shipments of subject merchandise from Hiep Thanh or Acom entered, or
withdrawn from warehouse, for consumption on or after the publication
date, as provided for by section 751(a)(2)(C) of the Act: (1) for
subject merchandise produced and exported by Hiep Thanh or produced and
exported Acom, the cash deposit rate will be zero; (2) for subject
merchandise exported by Hiep Thanh or Acom but not manufactured by Hiep
Thanh or Acom, the cash deposit rate will continue to be the Vietnam-
wide rate (i.e., 63.88 percent); and (3) for subject merchandise
manufactured by Hiep Thanh or Acom, but exported by any other party,
the cash deposit rate will be the rate applicable to the exporter. If
the cash deposit rate calculated in the final results is zero or de
minimis, no cash deposit will be required for those specific producer-
exporter combinations. These cash deposit requirements, when imposed,
shall remain in effect until further notice.
Notification to Importers
This notice serves as a preliminary reminder to importers of their
responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this POR. Failure to comply with this
requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
We are issuing and publishing this determination in accordance with
sections 751(a)(2)(B) and 777(i) of the Act, and 19 CFR 351.214(h) and
351.221(b)(4.
Dated: January 16, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.
[FR Doc. E9-1722 Filed 1-27-09; 8:45 am]
BILLING CODE 3510-DS-S