Certain Pasta From Turkey: Notice of Preliminary Results of Antidumping Duty Administrative Review, 23974-23978 [2011-10434]
Download as PDF
23974
Federal Register / Vol. 76, No. 83 / Friday, April 29, 2011 / Notices
Mastromauro S.p.A. (‘‘Riscossa’’),
Rummo S.p.A. Molino e Pastificio
(‘‘Rummo’’), and Rustichella d’Abruzzo
S.p.A (‘‘Rustichella’’).2
Scope of the Order
Imports covered by this order are
shipments of certain non-egg dry pasta
in packages of five pounds four ounces
or less, whether or not enriched or
fortified or containing milk or other
optional ingredients such as chopped
vegetables, vegetable purees, milk,
gluten, diastasis, vitamins, coloring and
flavorings, and up to two percent egg
white. The pasta covered by this scope
is typically sold in the retail market, in
fiberboard or cardboard cartons, or
polyethylene or polypropylene bags of
varying dimensions.
Excluded from the scope of this order
are refrigerated, frozen, or canned
pastas, as well as all forms of egg pasta,
with the exception of non-egg dry pasta
containing up to two percent egg white.
Also excluded are imports of organic
pasta from Italy that are accompanied by
the appropriate certificate issued by the
Instituto Mediterraneo Di Certificazione,
by QC&I International Services, by
Ecocert Italia, by Consorzio per il
Controllo dei Prodotti Biologici, by
Associazione Italiana per l’Agricoltura
Biologica, by Codex S.r.L., by
Bioagricert S.r.L., or by Instituto per la
Certificazione Etica e Ambientale.
Effective July 1, 2008, gluten free pasta
is also excluded from this order. See
Certain Pasta From Italy: Notice of Final
Results of Antidumping Duty Changed
Circumstances Review and Revocation,
in Part, 74 FR 41120 (August 14, 2009).
The merchandise subject to this order is
currently classifiable under items
1902.19.20 and 1901.90.9095 of the
Harmonized Tariff Schedule of the
United States (‘‘HTSUS’’). Although the
HTSUS subheadings are provided for
convenience and customs purposes, the
written description of the merchandise
subject to the order is dispositive.
srobinson on DSKHWCL6B1PROD with NOTICES
Partial Rescission of the 2009–2010
Administrative Review
On September 13, 2010, the
Department announced its intention to
select mandatory respondents based on
U.S. Customs and Border Protection
(‘‘CBP’’) data.3 On October 10, 2010, the
Department selected Garofalo and
2 See Initiation of Antidumping and
Countervailing Duty Administrative Reviews and
Deferral of Initiation of Administrative Review, 75
FR 53274, (August 31, 2010) (‘‘Initiation Notice’’).
3 See Memorandum from Christopher Hargett to
Melissa Skinner titled ‘‘Customs and Border
Protection Data for Selection of Respondents for
Individual Review,’’ dated September 13, 2010.
VerDate Mar<15>2010
17:39 Apr 28, 2011
Jkt 223001
Tomasello as mandatory respondents.4
On November 12, 2010, counsel for
Afeltra, Agritalia, Di Martino, Felicetti,
Labor, PAM, Erasmo, P.A.P., Riscossa,
Rustichella, and Zara (collectively
‘‘certain non-mandatory respondents’’)
requested that the Department extend
the deadline to withdraw from the
instant review for 45 days. On
November 24, 2010, the Department
declined to modify the 90-day deadline
for parties to withdraw their requests for
review. See the Department’s letter to
counsel for the certain non-mandatory
respondents, dated November 24, 2010.
On November 29, 2010, Di Martino,
Felicetti, and Zara withdrew their
requests for a review.
Pursuant to 19 CFR 351.213(d)(1), the
Secretary will rescind an administrative
review, in whole or in part, if the parties
that requested a review withdraw the
request within 90 days of the date of
publication of the notice of initiation of
the requested review. The instant
review was initiated on August 31,
2010. See Initiation Notice. Di Martino,
Felicetti, and Zara’s withdrawal of their
requests for a review falls within the 90day deadline. No other party requested
an administrative review of these
particular companies. Therefore, in
accordance with 19 CFR 351.213(d)(1),
and consistent with our practice, we are
rescinding this review of the
antidumping duty order on certain pasta
from Italy, in part, with respect to Di
Martino, Felicetti, and Zara.5 The
instant review will continue with
respect to Agritalia, Erasmo, Indalco,
Labor, Tomasello, PAM, P.A.P., Afeltra,
Fabianelli, Garofalo, Riscossa, Rummo,
and Rustichella.
Assessment
The Department will instruct CBP to
assess antidumping duties on all
appropriate entries. For the companies
for which this review is rescinded, Di
Martino, Felicetti, and Zara,
antidumping duties shall be assessed at
rates equal to the cash deposit of
estimated antidumping duties required
at the time of entry, or withdrawal from
warehouse, for consumption, during the
period July 1, 2009, through June 30,
2010, in accordance with 19 CFR
351.212(c)(1)(i).
The Department intends to issue
appropriate assessment instructions
directly to CBP 15 days after publication
of this notice.
Notification to Importers
This notice serves as a reminder to
importers of their responsibility under
19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of doubled antidumping duties.
Notification Regarding Administrative
Protective Order
This notice serves as a final reminder
to parties subject to administrative
protective orders (‘‘APOs’’) of their
responsibility concerning the
disposition of proprietary information
disclosed under an APO in accordance
with 19 CFR 351.305(a)(3), which
continues to govern business
proprietary information in this segment
of the proceeding. Timely written
notification of the return/destruction of
APO materials or conversion to judicial
protective order is hereby requested.
Failure to comply with the regulations
and terms of an APO is a violation
which is subject to sanction.
This notice is issued and published in
accordance with sections 751(a)(1) and
777(i)(1) of the Tariff Act of 1930, as
amended, and 19 CFR 351.213(d)(4).
Dated: April 25, 2011.
Christian Marsh,
Deputy Assistant Secretary for Antidumping
and Countervailing Duty Operations.
[FR Doc. 2011–10426 Filed 4–28–11; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–489–805]
Certain Pasta From Turkey: Notice of
Preliminary Results of Antidumping
Duty Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from
petitioners 1 to conduct an
administrative review of Marsan Gida
Sanayi ve Ticaret A.S. (Marsan), the
AGENCY:
4 See
Memorandum from Christopher Hargett to
Melissa Skinner titled ‘‘Selection of Respondents for
Individual Review,’’ dated October 10, 2010.
5 See e.g., Certain Lined Paper Products From
India: Notice of Partial Rescission of Antidumping
Duty Administrative Review and Extension of Time
Limit for the Preliminary Results of Antidumping
Duty Administrative Review, 74 FR 21781 (May 11,
2009); see also Carbon Steel Butt-Weld Pipe Fittings
from Thailand: Rescission of Antidumping Duty
Administrative Review, 74 FR 7218 (February 13,
2009).
PO 00000
Frm 00006
Fmt 4703
Sfmt 4703
1 New World Pasta Company, American Italian
Pasta Company, and Dakota Growers Pasta
Company (collectively, petitioners).
E:\FR\FM\29APN1.SGM
29APN1
Federal Register / Vol. 76, No. 83 / Friday, April 29, 2011 / Notices
srobinson on DSKHWCL6B1PROD with NOTICES
Department of Commerce (the
Department) initiated an administrative
review of the antidumping duty order
on certain pasta (pasta) from Turkey.
The period of review (POR) is July 1,
2009, through June 30, 2010. As
discussed below, we preliminarily find
that Marsan was not a producer of
subject merchandise during the POR. In
addition, because the producer of
subject merchandise, Birlik Paz. San. ve
Tic. A.S. (Birlik), had knowledge that
the pasta it produced and sold to
Marsan was destined for the United
States, we preliminarily determine that
Marsan had no reviewable entries
during the POR.
Interested parties are invited to
comment on these preliminary results.
We intend to issue the final results no
later than 120 days from the date of
publication of this notice, pursuant to
section 751(a)(3)(A) of the Tariff Act of
1930, as amended (the Act).
DATES: Effective Date: April 29, 2011.
FOR FURTHER INFORMATION CONTACT:
Stephanie Moore or Cindy Robinson,
AD/CVD Operations Office 3, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–3692 and (202)
482–3797, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 24, 1996, the Department
published in the Federal Register the
antidumping duty order on pasta from
Turkey. See Notice of Antidumping
Duty Order and Amended Final
Determination of Sales at Less Than
Fair Value: Certain Pasta From Turkey,
61 FR 38545 (July 24, 1996) (Amended
Final Determination). On July 1, 2010,
we published in the Federal Register
the notice of ‘‘Opportunity to Request
Administrative Review’’ of this order.
See Antidumping or Countervailing
Duty Order, Finding, or Suspended
Investigation; Opportunity To Request
Administrative Review, 75 FR 38074
(July 1, 2010). On July 30, 2010, we
received a request from petitioners to
review Marsan, in accordance with 19
CFR 351.213(b)(1). On August 31, 2010,
we published the notice of initiation of
review of Marsan (successor-in-interest
to Gidasa Sabanci gida Sanayi ve Ticaret
(‘‘Gidasa’’)). See Initiation of
Antidumping and Countervailing Duty
Administrative Reviews and Deferral of
Initiation of Administrative Review, 75
FR 53274 (August 31, 2010); see also
Certain Pasta from Turkey: Notice of
Final Results of Antidumping Duty
Changed Circumstances Review, 74 FR
VerDate Mar<15>2010
17:39 Apr 28, 2011
Jkt 223001
26373 (June 2, 2009) (determining that
Marsan is the successor-in-interest to
Gidasa in the antidumping duty
proceeding).
The Department disregarded sales that
failed the cost test during the most
recently completed segment of the
proceeding in which this company
participated.2 Therefore, pursuant to
section 773(b)(2)(A)(ii) of the Act, we
had reasonable grounds to believe or
suspect that sales by this company of
the foreign like product under
consideration for the determination of
normal value in this review were made
at prices below the cost of production.
Thus, we initiated a cost investigation of
Marsan at the time we initiated the
antidumping review.
On September 15, 2010, we sent the
antidumping duty questionnaire for
Sections A through D to Marsan. Marsan
submitted its response to the initial
questionnaire for Sections A through D
on November 12, 2010. From December
3, 2010, to February 15, 2011,
supplemental questionnaires were
issued to Marsan, and responses were
submitted to the Department from
December 10, 2010, to March 9, 2011. In
its response to Section D, Marsan
submitted cost information on behalf of
Birlik. On April 12, 2010, the
Department extended the time limit for
the preliminary results of this
proceeding until no later than May 4,
2011.3
Period of Review
The POR covered by this review is
July 1, 2009, through June 30, 2010.
Scope of Review
Imports covered by this review are
shipments of certain non-egg dry pasta
in packages of five pounds (2.27
kilograms) or less, whether or not
enriched or fortified or containing milk
or other optional ingredients such as
chopped vegetables, vegetable purees,
milk, gluten, diastases, vitamins,
coloring and flavorings, and up to two
percent egg white. The pasta covered by
this scope is typically sold in the retail
market, in fiberboard or cardboard
cartons, or polyethylene or
polypropylene bags of varying
dimensions. Excluded from the scope of
2 The administrative review covering the period
July 1, 1998, through June 30, 1999, was the most
recently completed review for Marsan’s
predecessor. See Notice of Final Results of
Antidumping Duty Administrative Review: Certain
Pasta from Turkey, 64 FR 69493 (December 13,
1999).
3 See Certain Pasta From Turkey: Extension of
Time Limit for the Preliminary Results of
Antidumping Duty Administrative Review, 76 FR
20312 (April 12, 2011).
.
PO 00000
Frm 00007
Fmt 4703
Sfmt 4703
23975
this review are refrigerated, frozen, or
canned pastas, as well as all forms of
egg pasta, with the exception of non-egg
dry pasta containing up to two percent
egg white.
The merchandise subject to review is
currently classifiable under item
1902.19.20 of the Harmonized Tariff
Schedule of the United States (HTSUS).
Although the HTSUS subheading is
provided for convenience and customs
purposes, the written description of the
merchandise subject to the order is
dispositive.
Whether Marsan Is Affiliated With the
Producer
Marsan asserts that it is affiliated with
the producer of subject merchandise,
Birlik, part of the larger Ulker group
business structure, because a principal
shareholder of MGS Marmara Gida San.
ve Tic. A.S. (MGS), Marsan’s holding
company, is also a shareholder in BIM
Birlesik Magazalar (BIM). BIM is owned
12 percent by Ulker Biskuvi, which is
also an Ulker group company. See
November 12, 2010, questionnaire
response at 9. Marsan argues that, under
the Department’s rules for affiliation,
because the owner of Marsan is
affiliated with the Ulker group, Marsan
is also affiliated with the Ulker group.
Marsan states that prior to November
2008, it owned and operated the Hendek
facility in Hendek, Turkey and
produced pasta at that facility. On
November 4, 2008, Marsan leased the
entire Hendek facility to Birlik. Under
the lease agreement, Marsan contracted
with Birlik to produce PIYALE pasta
(Marsan’s brand) until November 2009.
Marsan argues that, although it retained
ownership of the assets in the Hendek
facility as of November 2008, Birlik took
over the pasta production and became
Marsan’s sole supplier. See January 24,
2011, questionnaire response at 7. In
December 2009, Marsan sold the durum
wheat milling equipment and the pasta
production equipment to the company
Olkusan (renamed Bellini in April
2010), which is also an Ulker group
company. See November 12, 2010,
questionnaire response at 5. Marsan
continued ownership of the Hendek
facility buildings and silos as well as the
soft wheat milling equipment, which
Marsan had continued to lease to Birlik
until June 1, 2010. In June 2010, Marsan
leased all of its assets in the Hendek
facility to Bellini. Bellini then
contracted with Birlik for Birlik to
continue pasta production. See id.
Marsan asserts that the Ulker group
exercised control-in-fact over Marsan
because Marsan increasingly lost its
independence, first by selling the
durum mill and pasta plant to Olkusan/
E:\FR\FM\29APN1.SGM
29APN1
srobinson on DSKHWCL6B1PROD with NOTICES
23976
Federal Register / Vol. 76, No. 83 / Friday, April 29, 2011 / Notices
Bellini (an Ulker group company).
Marsan further asserts that the Ulker
group exercises full operational and
strategic control over Birlik with respect
to the brands sold by Birlik, Birlik’s
customers (Birlik is a supplier only to
Marsan and to Ulker group companies),
and Birlik’s product line. Marsan argues
that because, it is co-dependent on
Birlik, the Ulker group effectively
exercises considerable control over
Marsan’s domestic sales activities. See
November 12, 2010, questionnaire
response at 12.
Marsan surmises that even if there
were no intertwining of activities, the
mere fact of cross-ownership between
the owner of MGS and the Ulker Group,
coupled with the potential for mutual
influence inherent in the sole supplier/
customer relationship between Marsan
and Birlik/Bellini, compels the
conclusion that the parties are affiliated
for antidumping purposes.
The Department preliminary finds
that Marsan and Birlik are not affiliated
under section 771(33) of the Act.
Pursuant to section 771(33) of the Act,
an affiliated person may be: (A) a family
member; (B) an officer or director of an
organization; (C) partners; (D) employers
and their employees; (E) any person or
organization directly or indirectly
owning, controlling, or holding with
power to vote, five percent or more of
the outstanding voting stock or shares of
any organization and that organization;
(F) two or more persons who directly or
indirectly control, are controlled by, or
are under common control with, any
person; and (G) any person who controls
any other person and such other person.
To determine affiliation between
companies, the Department must find at
least one of the criteria above is
applicable to the respondent. As defined
by section 771(33) of the Act, a person
shall be considered to control another
person if the person is legally or
operationally in a position to exercise
restraint or direction over the other
person. Section 351.102(b)(3) of the
Department’s regulations provides that
in finding affiliation based on control,
the Department will, among other
factors, consider (i) corporate or family
groupings; (ii) franchise or joint venture
agreements; (iii) debt financing; and (iv)
close supplier relationships. In
determining whether control exists, the
Department does not require evidence of
the actual exercise of control by one
party over another party. Rather, we
focus upon one party’s ability to control
the other.4 In the present case, we do
4 See Antidumping Duties; Countervailing Duties;
Final Rule, 62 FR 27296, 27297–98 (May 19, 1997)
(Final Rule).
VerDate Mar<15>2010
17:39 Apr 28, 2011
Jkt 223001
not find the existence of an affiliation,
as defined by the statute, between
Marsan and Birlik. First, the evidence
on the record shows that there is no
direct cross-ownership between Marsan
and Birlik. The only ownership the
parties have in common is that the
majority owner of Marsan’s parent
company and Birlik’s parent company
each own shares in BIM, a third party.
See id., at 9. Thus, nothing about this
ownership creates affiliation pursuant to
section 771(33) of the Act. Due to the
proprietary nature of this issue, see
Preliminary Results Memorandum to
Melissa G. Skinner, Office Director, AD/
CVD Operations 3 from the Team
regarding Marsan’s Affiliation, dated
April 4, 2011.
We preliminarily find that Marsan’s
argument of affiliation based on control
and a close supplier relationship
between Marsan and Birlik do not meet
the standards for affiliation based on a
close supplier relationship, within the
meaning of section 771(33)(G) of the
Act. Section 771(33)(G) of the Act
defines an affiliated party as ‘‘any
person who controls any other person
and such other person.’’ Section 771(33)
of the Act states further that ‘‘a person
shall be considered to control another
person if the person is legally or
operationally in a position to exercise
restraint or direction over the other
person.’’
The Statement of Administrative
Action (SAA) defines a close supplier
relationship as one where ‘‘the supplier
or buyer becomes reliant upon
another.’’ 5 To establish a close supplier
relationship, the party must
demonstrate that the ‘‘relationship is so
significant that it could not be
replaced.’’ 6 The Department’s
regulations at 19 CFR 351.102(b), states
that such a relationship must have the
potential to impact decisions
concerning the production, pricing or
cost of the subject merchandise or
foreign like product. In Stainless Steel
Wire Rod, for instance, the Department
found a close supplier relationship
between two companies based on the
fact that the purchaser, whose
operations were almost exclusively
dependent upon finishing unfinished
stainless steel wire rod (also known as
black coil), was not able to obtain
5 SAA accompanying the Uruguay Round
Agreements Act, H.R. Doc. No. 103–316, vol. 1 at
838 (1994); see also Notice of Preliminary
Determination of Sales at Less Than Fair Value:
Solid Fertilizer Grade Ammonium Nitrate From the
Russian Federation, 65 FR 1139, 1142–43 (January
7, 2000), unchanged in Notice of Final
Determination of Sales at Less Than Fair Value;
Solid Fertilizer Grade Ammonium Nitrate From the
Russian Federation, 65 FR 42669 (July 11, 2000).
6 Id.
PO 00000
Frm 00008
Fmt 4703
Sfmt 4703
suitable black coil from sources other
than the supplier in question.7
The information on the record of this
case does not support Marsan’s
argument of affiliation based on control
and a close supplier relationship
between Marsan and Birlik. The record
indicates that during the POR, Marsan
and Birlik entered into a lease and
contract production agreement. Under
the terms of the agreement, Marsan
leased its Hendek pasta production
facility to Birlik for a fee, and Birlik
produced and sold PIYALE pasta
(Marsan’s brand) to Marsan. See
November 12, 2010, questionnaire
response at 5–6, and Exhibit 2.
Although Birlik acts as Marsan’s sole
supplier under the terms of the contract
production agreement, Birlik produces
pasta for other companies in the Ulker
group. See id. See also January 24, 2011,
questionnaire response at 7.
Although Marsan argues that the
Ulker group exercises full operational
and strategic control over Birlik with
respect to its product line and its
customers, there is no record evidence
that Birlik determined the types of pasta
it produces for Marsan or that Marsan
was fully inhibited to purchase pasta
from other suppliers. Nothing in the
contract production agreement between
Marsan and Birlik indicates that either
party could control the pricing of the
other party. See November 12, 2010,
questionnaire response at Exhibit 2. To
the extent that the production
agreement between Marsan and Birlik
can be considered an exclusive sales
contract, the Department has previously
recognized such a commercial
arrangement to be ‘‘common’’ in that it
is typically made at arm’s length and
does not normally indicate control of
one party over the other.8 Moreover, the
Court of International Trade has held
that, even where there are exclusive
sales contracts, the Department has
properly found that such contracts alone
were insufficient to support an
affiliation finding.9
Because there is no evidence on the
record that indicates that Birlik or any
other company in the Ulker group had
the ability to control Marsan or that a
7 Stainless Steel Wire Rod from the Republic of
Korea: Preliminary Results of Antidumping Duty
Administrative Review, 71 FR 59739, 59739–59740
(October 11, 2006), unchanged in Stainless Steel
Wire Rod from the Republic of Korea: Final Results
of Antidumping Duty Administrative Review, 72 FR
6528 (February 12, 2007) (Stainless Steel Wire Rod).
8 See Honey from the People’s Republic of China:
Final Results and Final Rescission, In Part, of
Antidumping Duty Administrative Review, 70 FR
38872 (July 6, 2005), and accompanying Issues and
Decision Memorandum at Comment 11.
9 See Hontex Enterprises, Inc. v. United States,
342 F. Supp. 1225, 1243 (Ct. Int’l Trade 2004).
E:\FR\FM\29APN1.SGM
29APN1
Federal Register / Vol. 76, No. 83 / Friday, April 29, 2011 / Notices
close supplier relationship exists, we
preliminarily determine that there is no
affiliation between Marsan and Birlik.
srobinson on DSKHWCL6B1PROD with NOTICES
Whether the Producer Had Knowledge
of Destination
Marsan states that, should the
Department find that Marsan and the
Ulker group are not related, then Marsan
would not be the proper respondent
because it is not the manufacturer. See
November 12, 2010, questionnaire
response at 12.
Marsan explains that after it confirms
the pro-forma invoice, the order
information is entered into the
computer system, and Birlik has access
to this module of Marsan’s computer
system. Birlik then produces the
merchandise, loads it onto the
container, and prepares the ‘‘Shipping
Advice’’ on Marsan’s letterhead, which
accompanies the merchandise from the
Hendek facility to the port of export. See
March 1, 2011, questionnaire response
at 2. Marsan states that Birlik knows
that the pasta sold to Marsan for
exportation to the United States is
destined for the United States. See Id.,
at 4. Marsan also states that Birlik is
familiar with the brands that Marsan
exports to the United States, and that
Marsan informs Birlik of the
destinations for its export orders. See id.
The Department’s review of
information on the record shows that
Marsan did not produce the subject
merchandise and it was not the first
party in the transaction chain to have
knowledge that the merchandise was
destined for the United States. The
record also shows that the shipments of
the merchandise at issue were produced
by Birlik and that Birlik had knowledge
of the destination of the exports.
Therefore, it is appropriate to apply the
reseller policy, as follows:
As described in the October 15, 1998,
Federal Register notice, automatic liquidation
at the cash-deposit rate required at the time
of entry can only apply to a reseller which
does not have its own rate if no
administrative review has been requested,
either of the reseller or of any producer of
merchandise the reseller exported to the
United States. If the Department conducts a
review of a producer of the reseller’s
merchandise where entries of the
merchandise were suspended at the
producer’s rate, automatic liquidation will
not apply to the reseller’s sales. If, in the
course of an administrative review, the
Department determines that the producer
knew, or should have known, that the
merchandise it sold to the reseller was
destined for the United States, the reseller’s
merchandise will be liquidated at the
producer’s assessment rate which the
Department calculates for the producer in the
review. If, on the other hand, the Department
determines in the administrative review that
VerDate Mar<15>2010
17:39 Apr 28, 2011
Jkt 223001
the producer did not know that the
merchandise it sold to the reseller was
destined for the United States, the reseller’s
merchandise will not be liquidated at the
assessment rate the Department determines
for the producer or automatically at the rate
required as a deposit at the time of entry. In
that situation, the entries of merchandise
from the reseller during the period of review
will be liquidated at the all others rate if
there was no company-specific review of the
reseller for that review period.10
The Court of International Trade
upheld the Department’s reseller policy
in Parkdale Int’l, Ltd. v. United States,
508 F. Supp. 2d 1338, 1343–44 (Ct. Int’l
Trade 2007) (Parkdale). In its decision,
the Court described the Department’s
reseller policy, including the producer’s
knowledge of whether its product was
destined for the United States as a
critical factor in determining the
appropriate dumping duty rate:
If a review is requested for a reseller,
Commerce will cease to assume that the
producer was aware of the reseller’s entries,
and set a rate specific to the reseller if
Commerce determines it was unaffiliated
with a producer. If someone requests a
review of a producer, Commerce will
determine whether the producer in question
was aware of the ultimate destination of sales
to a given reseller. If Commerce discovers
that the producer was aware of the
destination of a sale to a reseller, Commerce
will find that the producer set the price of
sale into the United States and assess
antidumping duties accordingly. If, however,
Commerce finds that a producer is unaware
of the ultimate destination of the sales to a
reseller, it can no longer rely on its prior
assumption to apply the producer’s
assessment rate calculated during the
administrative review.
Id. at 1343–44. In affirming the
Department’s reseller policy, the Court
held that the policy permissibly filled a
gap in the Department’s automatic
assessment regulation, 19 CFR
351.212(c), which the Court described
as applying ‘‘only to entries that are not
covered by the request for review; it
says nothing about entries that were
covered by the request for review, but
are not within the scope of the final
results of the review.’’ Id. at 1353. The
Court further explained:
To require Commerce to adhere to a
producer’s cash deposit rate in liquidating
entries, even after it discovers that the
assumption upon which the use of that rate
was based is false, would not result in the
rate the reseller should have received, i.e.,
the ‘‘proper rate.’’ * * * Under the Reseller
Policy, Commerce has chosen to apply the
rate the reseller would have been assigned
had Commerce initially known that the
10 See Antidumping and Countervailing Duty
Proceedings: Assessment of Antidumping Duties, 68
FR 23954, 23954 (May 6, 2003) (Assessment of
Antidumping Duties).
PO 00000
Frm 00009
Fmt 4703
Sfmt 4703
23977
reseller, rather than the producer, was the
first party in the commercial chain to know
of the destination of the merchandise. Use of
the all others rate most closely adheres to
Commerce’s policy of setting antidumping
duty rates based on the first entity in the
commercial chain that has knowledge of the
destination of the subject merchandise. Thus,
the all others rate is the ‘‘proper rate.’’
Id.
In light of the principles affirmed in
Parkdale and our preliminary findings
that Birlik and not Marsan was the
producer of the subject pasta and that
Birlik had knowledge that the pasta was
destined for the United States, we
preliminarily find that application of
the reseller policy is appropriate and
that liquidation of entries corresponding
to pasta produced by Birlik should not
occur at the cash deposit rate applicable
to Marsan at the time of entry.
Preliminary Results of Review
As noted above, we preliminarily
determine that Marsan was not the first
party in the transaction chain to have
knowledge that the merchandise was
destined for the United States, and thus
Marsan is not considered the exporter of
subject merchandise during the POR for
purposes of this review. In accordance
with the 1997 regulations concerning no
shipment respondents, the Department’s
practice had been to rescind the
administrative review.11 As a result, in
such circumstances, we normally
instruct U.S. Customs and Border
Protection (CBP) to liquidate any entries
from the no-shipment company at the
deposit rate in effect on the date of
entry. However, in our May 6, 2003,
‘‘automatic assessment’’ clarification, we
explained that, where respondents in an
administrative review demonstrate that
they had no knowledge of sales through
resellers to the United States, we would
instruct CBP to liquidate such entries at
the all-others rate applicable to the
proceeding. See Assessment of
Antidumping Duties.
The Department preliminary finds
that Marsan had no shipments to the
United States during the POR for which
it was the first party with knowledge of
U.S. destination. Because ‘‘as entered’’
liquidation instructions do not alleviate
the concerns which the May 2003,
clarification was intended to address,
we find it appropriate in this case to
instruct CBP to liquidate any existing
entries of merchandise produced by
Birlik and exported by Marsan at the
rate applicable to Birlik, i.e., the all
others rate from the investigation. See,
e.g., Certain Frozen Warmwater Shrimp
from India: Partial Rescission of
11 See Antidumping Duties; Countervailing
Duties, 62 FR 27296, 27393 (May 19, 1997).
E:\FR\FM\29APN1.SGM
29APN1
23978
Federal Register / Vol. 76, No. 83 / Friday, April 29, 2011 / Notices
Antidumping Duty Administrative
Review, 73 FR 77610, 77612 (December
19, 2008). In addition, the Department
finds that it is more consistent with the
May 2003 clarification not to rescind the
review in these circumstances but,
rather, to complete the review with
respect to Marsan and issue appropriate
instructions to CBP based on the final
results of the review. See Magnesium
Metal From the Russian Federation:
Final Results of Antidumping Duty
Administrative Review, 75 FR 56989,
56989–56990 (September 17, 2010). See
also the Assessment Rates section of
this notice below.
srobinson on DSKHWCL6B1PROD with NOTICES
Disclosure
The Department will disclose these
preliminary results to the parties within
five days of the date of publication of
this notice in accordance with 19 CFR
351.224(b).
Comments
Interested parties are invited to
comment on the preliminary results and
may submit case briefs and/or written
comments within 30 days of the date of
publication of this notice. See 19 CFR
351.309(c)(1)(ii). Rebuttal briefs, limited
to issues raised in the case briefs, will
be due five days later, pursuant to 19
CFR 351.309(d). Parties who submit
case or rebuttal briefs in this proceeding
are requested to submit with each
argument (1) a statement of the issue,
and (2) a brief summary of the
argument. Parties are requested to
provide a summary of the arguments not
to exceed five pages and a table of
statutes, regulations, and cases cited.
See 19 CFR 351.309(c)(2). Additionally,
parties are requested to provide their
case brief and rebuttal briefs in
electronic format (e.g., Microsoft Word,
pdf, etc.). Interested parties, who wish
to request a hearing or to participate if
one is requested, must submit a written
request to the Assistant Secretary for
Import Administration within 30 days
of the date of publication of this notice.
Requests should contain: (1) The party’s
name, address, and telephone number;
(2) the number of participants; and (3)
a list of issues to be discussed. See 19
CFR 351.310(c). Issues raised in the
hearing will be limited to those raised
in case and rebuttal briefs. The
Department will issue the final results
of this review, including the results of
its analysis of issues raised in any such
written briefs or at the hearing, if held,
not later than 120 days after the date of
publication of this notice.
Assessment Rates
The Department intends to issue
appropriate assessment instructions
VerDate Mar<15>2010
17:39 Apr 28, 2011
Jkt 223001
directly to CBP 15 days after the
publication of the final results of this
review.
Normally, the Department instructs
CBP to liquidate any entries from the
no-shipment producer at the deposit
rate in effect on the date of entry.
However, in this case, because there was
only a request for review of the reseller
and not the producer, we intend to
liquidate entries at the producer’s rate.
However, because Birlik does not have
its own rate, we intend to instruct CBP
to liquidate entries at the ‘‘all others’’
rate from the investigation of 51.49
percent, in accordance with the reseller
policy.
Cash Deposit Requirements
The following deposit rates will be
effective upon publication of the final
results of this administrative review for
all shipments of certain pasta from
Turkey entered, or withdrawn from
warehouse, for consumption on or after
the publication date, as provided by
section 751(a)(2)(C) of the Act for
Marsan, and for previously reviewed or
investigated companies, the cash
deposit rate will continue to be the
company-specific rate published for the
most recent final results in which that
manufacturer or exporter participated;
(2) if the exporter is not a firm covered
in these reviews, a prior review, or the
original less-than-fair-value (LTFV)
investigation, but the manufacturer is,
the cash deposit rate will be the rate
established for the most recent final
results for the manufacturer of the
merchandise; and (3) if neither the
exporter nor the manufacturer is a firm
covered in this or any previous review
or the LTFV conducted by the
Department, the cash deposit rate will
be 51.49 percent, the all-others rate
established in the LTFV. See Amended
Final Determination. 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 and countervailing duties
prior to liquidation of the relevant
entries during this review period.
Failure to comply with this requirement
could result in the Secretary’s
presumption that reimbursement of
antidumping and countervailing duties
occurred and the subsequent assessment
of double antidumping and
countervailing duties.
These preliminary results of review
are issued and published in accordance
PO 00000
Frm 00010
Fmt 4703
Sfmt 4703
with sections 751(a)(1) and 777(i) of the
Act and 19 CFR 351.221(b)(4).
Dated: April 22, 2011.
Paul Piquado,
Acting Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2011–10434 Filed 4–28–11; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–904]
Certain Activated Carbon From the
People’s Republic of China:
Preliminary Results of the Third
Antidumping Duty Administrative
Review, and Preliminary Rescission in
Part
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(‘‘Department’’) is conducting the third
administrative review of the
antidumping duty order on certain
activated carbon from the People’s
Republic of China (‘‘PRC’’) for the period
April 1, 2009, through March 31, 2010.
The Department has preliminarily
determined that sales have been made
below normal value (‘‘NV’’) by the
respondents examined in this
administrative review. If these
preliminary results are adopted in our
final results of this review, the
Department will instruct U.S. Customs
and Border Protection (‘‘CBP’’) to assess
antidumping duties on all appropriate
entries of subject merchandise during
the period of review.
DATES: Effective Date: April 29, 2011.
FOR FURTHER INFORMATION CONTACT: Bob
Palmer or Katie Marksberry, AD/CVD
Operations, Office 9, Import
Administration, International Trade
Administration, Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–9068 or (202) 482–
7906, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
The Department received timely
requests from Petitioners 1 and certain
PRC and other companies, in
accordance with 19 CFR 351.213(b),
during the anniversary month of April,
to conduct a review of certain activated
carbon exporters from the PRC. On May
28, 2010, and June 30, 2010, the
1 Collectively, Norit Americas Inc. (‘‘Norit’’) and
Calgon Carbon Corporation.
E:\FR\FM\29APN1.SGM
29APN1
Agencies
[Federal Register Volume 76, Number 83 (Friday, April 29, 2011)]
[Notices]
[Pages 23974-23978]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-10434]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-489-805]
Certain Pasta From Turkey: Notice of Preliminary Results of
Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from petitioners \1\ to conduct an
administrative review of Marsan Gida Sanayi ve Ticaret A.S. (Marsan),
the
[[Page 23975]]
Department of Commerce (the Department) initiated an administrative
review of the antidumping duty order on certain pasta (pasta) from
Turkey. The period of review (POR) is July 1, 2009, through June 30,
2010. As discussed below, we preliminarily find that Marsan was not a
producer of subject merchandise during the POR. In addition, because
the producer of subject merchandise, Birlik Paz. San. ve Tic. A.S.
(Birlik), had knowledge that the pasta it produced and sold to Marsan
was destined for the United States, we preliminarily determine that
Marsan had no reviewable entries during the POR.
---------------------------------------------------------------------------
\1\ New World Pasta Company, American Italian Pasta Company, and
Dakota Growers Pasta Company (collectively, petitioners).
---------------------------------------------------------------------------
Interested parties are invited to comment on these preliminary
results. We intend to issue the final results no later than 120 days
from the date of publication of this notice, pursuant to section
751(a)(3)(A) of the Tariff Act of 1930, as amended (the Act).
DATES: Effective Date: April 29, 2011.
FOR FURTHER INFORMATION CONTACT: Stephanie Moore or Cindy Robinson, AD/
CVD Operations Office 3, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
3692 and (202) 482-3797, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 24, 1996, the Department published in the Federal Register
the antidumping duty order on pasta from Turkey. See Notice of
Antidumping Duty Order and Amended Final Determination of Sales at Less
Than Fair Value: Certain Pasta From Turkey, 61 FR 38545 (July 24, 1996)
(Amended Final Determination). On July 1, 2010, we published in the
Federal Register the notice of ``Opportunity to Request Administrative
Review'' of this order. See Antidumping or Countervailing Duty Order,
Finding, or Suspended Investigation; Opportunity To Request
Administrative Review, 75 FR 38074 (July 1, 2010). On July 30, 2010, we
received a request from petitioners to review Marsan, in accordance
with 19 CFR 351.213(b)(1). On August 31, 2010, we published the notice
of initiation of review of Marsan (successor-in-interest to Gidasa
Sabanci gida Sanayi ve Ticaret (``Gidasa'')). See Initiation of
Antidumping and Countervailing Duty Administrative Reviews and Deferral
of Initiation of Administrative Review, 75 FR 53274 (August 31, 2010);
see also Certain Pasta from Turkey: Notice of Final Results of
Antidumping Duty Changed Circumstances Review, 74 FR 26373 (June 2,
2009) (determining that Marsan is the successor-in-interest to Gidasa
in the antidumping duty proceeding).
The Department disregarded sales that failed the cost test during
the most recently completed segment of the proceeding in which this
company participated.\2\ Therefore, pursuant to section
773(b)(2)(A)(ii) of the Act, we had reasonable grounds to believe or
suspect that sales by this company of the foreign like product under
consideration for the determination of normal value in this review were
made at prices below the cost of production. Thus, we initiated a cost
investigation of Marsan at the time we initiated the antidumping
review.
---------------------------------------------------------------------------
\2\ The administrative review covering the period July 1, 1998,
through June 30, 1999, was the most recently completed review for
Marsan's predecessor. See Notice of Final Results of Antidumping
Duty Administrative Review: Certain Pasta from Turkey, 64 FR 69493
(December 13, 1999).
---------------------------------------------------------------------------
On September 15, 2010, we sent the antidumping duty questionnaire
for Sections A through D to Marsan. Marsan submitted its response to
the initial questionnaire for Sections A through D on November 12,
2010. From December 3, 2010, to February 15, 2011, supplemental
questionnaires were issued to Marsan, and responses were submitted to
the Department from December 10, 2010, to March 9, 2011. In its
response to Section D, Marsan submitted cost information on behalf of
Birlik. On April 12, 2010, the Department extended the time limit for
the preliminary results of this proceeding until no later than May 4,
2011.\3\
---------------------------------------------------------------------------
\3\ See Certain Pasta From Turkey: Extension of Time Limit for
the Preliminary Results of Antidumping Duty Administrative Review,
76 FR 20312 (April 12, 2011).
.
---------------------------------------------------------------------------
Period of Review
The POR covered by this review is July 1, 2009, through June 30,
2010.
Scope of Review
Imports covered by this review are shipments of certain non-egg dry
pasta in packages of five pounds (2.27 kilograms) or less, whether or
not enriched or fortified or containing milk or other optional
ingredients such as chopped vegetables, vegetable purees, milk, gluten,
diastases, vitamins, coloring and flavorings, and up to two percent egg
white. The pasta covered by this scope is typically sold in the retail
market, in fiberboard or cardboard cartons, or polyethylene or
polypropylene bags of varying dimensions. Excluded from the scope of
this review are refrigerated, frozen, or canned pastas, as well as all
forms of egg pasta, with the exception of non-egg dry pasta containing
up to two percent egg white.
The merchandise subject to review is currently classifiable under
item 1902.19.20 of the Harmonized Tariff Schedule of the United States
(HTSUS). Although the HTSUS subheading is provided for convenience and
customs purposes, the written description of the merchandise subject to
the order is dispositive.
Whether Marsan Is Affiliated With the Producer
Marsan asserts that it is affiliated with the producer of subject
merchandise, Birlik, part of the larger Ulker group business structure,
because a principal shareholder of MGS Marmara Gida San. ve Tic. A.S.
(MGS), Marsan's holding company, is also a shareholder in BIM Birlesik
Magazalar (BIM). BIM is owned 12 percent by Ulker Biskuvi, which is
also an Ulker group company. See November 12, 2010, questionnaire
response at 9. Marsan argues that, under the Department's rules for
affiliation, because the owner of Marsan is affiliated with the Ulker
group, Marsan is also affiliated with the Ulker group.
Marsan states that prior to November 2008, it owned and operated
the Hendek facility in Hendek, Turkey and produced pasta at that
facility. On November 4, 2008, Marsan leased the entire Hendek facility
to Birlik. Under the lease agreement, Marsan contracted with Birlik to
produce PIYALE pasta (Marsan's brand) until November 2009. Marsan
argues that, although it retained ownership of the assets in the Hendek
facility as of November 2008, Birlik took over the pasta production and
became Marsan's sole supplier. See January 24, 2011, questionnaire
response at 7. In December 2009, Marsan sold the durum wheat milling
equipment and the pasta production equipment to the company Olkusan
(renamed Bellini in April 2010), which is also an Ulker group company.
See November 12, 2010, questionnaire response at 5. Marsan continued
ownership of the Hendek facility buildings and silos as well as the
soft wheat milling equipment, which Marsan had continued to lease to
Birlik until June 1, 2010. In June 2010, Marsan leased all of its
assets in the Hendek facility to Bellini. Bellini then contracted with
Birlik for Birlik to continue pasta production. See id.
Marsan asserts that the Ulker group exercised control-in-fact over
Marsan because Marsan increasingly lost its independence, first by
selling the durum mill and pasta plant to Olkusan/
[[Page 23976]]
Bellini (an Ulker group company). Marsan further asserts that the Ulker
group exercises full operational and strategic control over Birlik with
respect to the brands sold by Birlik, Birlik's customers (Birlik is a
supplier only to Marsan and to Ulker group companies), and Birlik's
product line. Marsan argues that because, it is co-dependent on Birlik,
the Ulker group effectively exercises considerable control over
Marsan's domestic sales activities. See November 12, 2010,
questionnaire response at 12.
Marsan surmises that even if there were no intertwining of
activities, the mere fact of cross-ownership between the owner of MGS
and the Ulker Group, coupled with the potential for mutual influence
inherent in the sole supplier/customer relationship between Marsan and
Birlik/Bellini, compels the conclusion that the parties are affiliated
for antidumping purposes.
The Department preliminary finds that Marsan and Birlik are not
affiliated under section 771(33) of the Act. Pursuant to section
771(33) of the Act, an affiliated person may be: (A) a family member;
(B) an officer or director of an organization; (C) partners; (D)
employers and their employees; (E) any person or organization directly
or indirectly owning, controlling, or holding with power to vote, five
percent or more of the outstanding voting stock or shares of any
organization and that organization; (F) two or more persons who
directly or indirectly control, are controlled by, or are under common
control with, any person; and (G) any person who controls any other
person and such other person.
To determine affiliation between companies, the Department must
find at least one of the criteria above is applicable to the
respondent. As defined by section 771(33) of the Act, a person shall be
considered to control another person if the person is legally or
operationally in a position to exercise restraint or direction over the
other person. Section 351.102(b)(3) of the Department's regulations
provides that in finding affiliation based on control, the Department
will, among other factors, consider (i) corporate or family groupings;
(ii) franchise or joint venture agreements; (iii) debt financing; and
(iv) close supplier relationships. In determining whether control
exists, the Department does not require evidence of the actual exercise
of control by one party over another party. Rather, we focus upon one
party's ability to control the other.\4\ In the present case, we do not
find the existence of an affiliation, as defined by the statute,
between Marsan and Birlik. First, the evidence on the record shows that
there is no direct cross-ownership between Marsan and Birlik. The only
ownership the parties have in common is that the majority owner of
Marsan's parent company and Birlik's parent company each own shares in
BIM, a third party. See id., at 9. Thus, nothing about this ownership
creates affiliation pursuant to section 771(33) of the Act. Due to the
proprietary nature of this issue, see Preliminary Results Memorandum to
Melissa G. Skinner, Office Director, AD/CVD Operations 3 from the Team
regarding Marsan's Affiliation, dated April 4, 2011.
---------------------------------------------------------------------------
\4\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27297-98 (May 19, 1997) (Final Rule).
---------------------------------------------------------------------------
We preliminarily find that Marsan's argument of affiliation based
on control and a close supplier relationship between Marsan and Birlik
do not meet the standards for affiliation based on a close supplier
relationship, within the meaning of section 771(33)(G) of the Act.
Section 771(33)(G) of the Act defines an affiliated party as ``any
person who controls any other person and such other person.'' Section
771(33) of the Act states further that ``a person shall be considered
to control another person if the person is legally or operationally in
a position to exercise restraint or direction over the other person.''
The Statement of Administrative Action (SAA) defines a close
supplier relationship as one where ``the supplier or buyer becomes
reliant upon another.'' \5\ To establish a close supplier relationship,
the party must demonstrate that the ``relationship is so significant
that it could not be replaced.'' \6\ The Department's regulations at 19
CFR 351.102(b), states that such a relationship must have the potential
to impact decisions concerning the production, pricing or cost of the
subject merchandise or foreign like product. In Stainless Steel Wire
Rod, for instance, the Department found a close supplier relationship
between two companies based on the fact that the purchaser, whose
operations were almost exclusively dependent upon finishing unfinished
stainless steel wire rod (also known as black coil), was not able to
obtain suitable black coil from sources other than the supplier in
question.\7\
---------------------------------------------------------------------------
\5\ SAA accompanying the Uruguay Round Agreements Act, H.R. Doc.
No. 103-316, vol. 1 at 838 (1994); see also Notice of Preliminary
Determination of Sales at Less Than Fair Value: Solid Fertilizer
Grade Ammonium Nitrate From the Russian Federation, 65 FR 1139,
1142-43 (January 7, 2000), unchanged in Notice of Final
Determination of Sales at Less Than Fair Value; Solid Fertilizer
Grade Ammonium Nitrate From the Russian Federation, 65 FR 42669
(July 11, 2000).
\6\ Id.
\7\ Stainless Steel Wire Rod from the Republic of Korea:
Preliminary Results of Antidumping Duty Administrative Review, 71 FR
59739, 59739-59740 (October 11, 2006), unchanged in Stainless Steel
Wire Rod from the Republic of Korea: Final Results of Antidumping
Duty Administrative Review, 72 FR 6528 (February 12, 2007)
(Stainless Steel Wire Rod).
---------------------------------------------------------------------------
The information on the record of this case does not support
Marsan's argument of affiliation based on control and a close supplier
relationship between Marsan and Birlik. The record indicates that
during the POR, Marsan and Birlik entered into a lease and contract
production agreement. Under the terms of the agreement, Marsan leased
its Hendek pasta production facility to Birlik for a fee, and Birlik
produced and sold PIYALE pasta (Marsan's brand) to Marsan. See November
12, 2010, questionnaire response at 5-6, and Exhibit 2. Although Birlik
acts as Marsan's sole supplier under the terms of the contract
production agreement, Birlik produces pasta for other companies in the
Ulker group. See id. See also January 24, 2011, questionnaire response
at 7.
Although Marsan argues that the Ulker group exercises full
operational and strategic control over Birlik with respect to its
product line and its customers, there is no record evidence that Birlik
determined the types of pasta it produces for Marsan or that Marsan was
fully inhibited to purchase pasta from other suppliers. Nothing in the
contract production agreement between Marsan and Birlik indicates that
either party could control the pricing of the other party. See November
12, 2010, questionnaire response at Exhibit 2. To the extent that the
production agreement between Marsan and Birlik can be considered an
exclusive sales contract, the Department has previously recognized such
a commercial arrangement to be ``common'' in that it is typically made
at arm's length and does not normally indicate control of one party
over the other.\8\ Moreover, the Court of International Trade has held
that, even where there are exclusive sales contracts, the Department
has properly found that such contracts alone were insufficient to
support an affiliation finding.\9\
---------------------------------------------------------------------------
\8\ See Honey from the People's Republic of China: Final Results
and Final Rescission, In Part, of Antidumping Duty Administrative
Review, 70 FR 38872 (July 6, 2005), and accompanying Issues and
Decision Memorandum at Comment 11.
\9\ See Hontex Enterprises, Inc. v. United States, 342 F. Supp.
1225, 1243 (Ct. Int'l Trade 2004).
---------------------------------------------------------------------------
Because there is no evidence on the record that indicates that
Birlik or any other company in the Ulker group had the ability to
control Marsan or that a
[[Page 23977]]
close supplier relationship exists, we preliminarily determine that
there is no affiliation between Marsan and Birlik.
Whether the Producer Had Knowledge of Destination
Marsan states that, should the Department find that Marsan and the
Ulker group are not related, then Marsan would not be the proper
respondent because it is not the manufacturer. See November 12, 2010,
questionnaire response at 12.
Marsan explains that after it confirms the pro-forma invoice, the
order information is entered into the computer system, and Birlik has
access to this module of Marsan's computer system. Birlik then produces
the merchandise, loads it onto the container, and prepares the
``Shipping Advice'' on Marsan's letterhead, which accompanies the
merchandise from the Hendek facility to the port of export. See March
1, 2011, questionnaire response at 2. Marsan states that Birlik knows
that the pasta sold to Marsan for exportation to the United States is
destined for the United States. See Id., at 4. Marsan also states that
Birlik is familiar with the brands that Marsan exports to the United
States, and that Marsan informs Birlik of the destinations for its
export orders. See id.
The Department's review of information on the record shows that
Marsan did not produce the subject merchandise and it was not the first
party in the transaction chain to have knowledge that the merchandise
was destined for the United States. The record also shows that the
shipments of the merchandise at issue were produced by Birlik and that
Birlik had knowledge of the destination of the exports. Therefore, it
is appropriate to apply the reseller policy, as follows:
As described in the October 15, 1998, Federal Register notice,
automatic liquidation at the cash-deposit rate required at the time
of entry can only apply to a reseller which does not have its own
rate if no administrative review has been requested, either of the
reseller or of any producer of merchandise the reseller exported to
the United States. If the Department conducts a review of a producer
of the reseller's merchandise where entries of the merchandise were
suspended at the producer's rate, automatic liquidation will not
apply to the reseller's sales. If, in the course of an
administrative review, the Department determines that the producer
knew, or should have known, that the merchandise it sold to the
reseller was destined for the United States, the reseller's
merchandise will be liquidated at the producer's assessment rate
which the Department calculates for the producer in the review. If,
on the other hand, the Department determines in the administrative
review that the producer did not know that the merchandise it sold
to the reseller was destined for the United States, the reseller's
merchandise will not be liquidated at the assessment rate the
Department determines for the producer or automatically at the rate
required as a deposit at the time of entry. In that situation, the
entries of merchandise from the reseller during the period of review
will be liquidated at the all others rate if there was no company-
specific review of the reseller for that review period.\10\
---------------------------------------------------------------------------
\10\ See Antidumping and Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68 FR 23954, 23954 (May 6, 2003)
(Assessment of Antidumping Duties).
The Court of International Trade upheld the Department's reseller
policy in Parkdale Int'l, Ltd. v. United States, 508 F. Supp. 2d 1338,
1343-44 (Ct. Int'l Trade 2007) (Parkdale). In its decision, the Court
described the Department's reseller policy, including the producer's
knowledge of whether its product was destined for the United States as
---------------------------------------------------------------------------
a critical factor in determining the appropriate dumping duty rate:
If a review is requested for a reseller, Commerce will cease to
assume that the producer was aware of the reseller's entries, and
set a rate specific to the reseller if Commerce determines it was
unaffiliated with a producer. If someone requests a review of a
producer, Commerce will determine whether the producer in question
was aware of the ultimate destination of sales to a given reseller.
If Commerce discovers that the producer was aware of the destination
of a sale to a reseller, Commerce will find that the producer set
the price of sale into the United States and assess antidumping
duties accordingly. If, however, Commerce finds that a producer is
unaware of the ultimate destination of the sales to a reseller, it
can no longer rely on its prior assumption to apply the producer's
assessment rate calculated during the administrative review.
Id. at 1343-44. In affirming the Department's reseller policy, the
Court held that the policy permissibly filled a gap in the Department's
automatic assessment regulation, 19 CFR 351.212(c), which the Court
described as applying ``only to entries that are not covered by the
request for review; it says nothing about entries that were covered by
the request for review, but are not within the scope of the final
results of the review.'' Id. at 1353. The Court further explained:
To require Commerce to adhere to a producer's cash deposit rate
in liquidating entries, even after it discovers that the assumption
upon which the use of that rate was based is false, would not result
in the rate the reseller should have received, i.e., the ``proper
rate.'' * * * Under the Reseller Policy, Commerce has chosen to
apply the rate the reseller would have been assigned had Commerce
initially known that the reseller, rather than the producer, was the
first party in the commercial chain to know of the destination of
the merchandise. Use of the all others rate most closely adheres to
Commerce's policy of setting antidumping duty rates based on the
first entity in the commercial chain that has knowledge of the
destination of the subject merchandise. Thus, the all others rate is
the ``proper rate.''
Id.
In light of the principles affirmed in Parkdale and our preliminary
findings that Birlik and not Marsan was the producer of the subject
pasta and that Birlik had knowledge that the pasta was destined for the
United States, we preliminarily find that application of the reseller
policy is appropriate and that liquidation of entries corresponding to
pasta produced by Birlik should not occur at the cash deposit rate
applicable to Marsan at the time of entry.
Preliminary Results of Review
As noted above, we preliminarily determine that Marsan was not the
first party in the transaction chain to have knowledge that the
merchandise was destined for the United States, and thus Marsan is not
considered the exporter of subject merchandise during the POR for
purposes of this review. In accordance with the 1997 regulations
concerning no shipment respondents, the Department's practice had been
to rescind the administrative review.\11\ As a result, in such
circumstances, we normally instruct U.S. Customs and Border Protection
(CBP) to liquidate any entries from the no-shipment company at the
deposit rate in effect on the date of entry. However, in our May 6,
2003, ``automatic assessment'' clarification, we explained that, where
respondents in an administrative review demonstrate that they had no
knowledge of sales through resellers to the United States, we would
instruct CBP to liquidate such entries at the all-others rate
applicable to the proceeding. See Assessment of Antidumping Duties.
---------------------------------------------------------------------------
\11\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27393 (May 19, 1997).
---------------------------------------------------------------------------
The Department preliminary finds that Marsan had no shipments to
the United States during the POR for which it was the first party with
knowledge of U.S. destination. Because ``as entered'' liquidation
instructions do not alleviate the concerns which the May 2003,
clarification was intended to address, we find it appropriate in this
case to instruct CBP to liquidate any existing entries of merchandise
produced by Birlik and exported by Marsan at the rate applicable to
Birlik, i.e., the all others rate from the investigation. See, e.g.,
Certain Frozen Warmwater Shrimp from India: Partial Rescission of
[[Page 23978]]
Antidumping Duty Administrative Review, 73 FR 77610, 77612 (December
19, 2008). In addition, the Department finds that it is more consistent
with the May 2003 clarification not to rescind the review in these
circumstances but, rather, to complete the review with respect to
Marsan and issue appropriate instructions to CBP based on the final
results of the review. See Magnesium Metal From the Russian Federation:
Final Results of Antidumping Duty Administrative Review, 75 FR 56989,
56989-56990 (September 17, 2010). See also the Assessment Rates section
of this notice below.
Disclosure
The Department will disclose these preliminary results to the
parties within five days of the date of publication of this notice in
accordance with 19 CFR 351.224(b).
Comments
Interested parties are invited to comment on the preliminary
results and may submit case briefs and/or written comments within 30
days of the date of publication of this notice. See 19 CFR
351.309(c)(1)(ii). Rebuttal briefs, limited to issues raised in the
case briefs, will be due five days later, pursuant to 19 CFR
351.309(d). Parties who submit case or rebuttal briefs in this
proceeding are requested to submit with each argument (1) a statement
of the issue, and (2) a brief summary of the argument. Parties are
requested to provide a summary of the arguments not to exceed five
pages and a table of statutes, regulations, and cases cited. See 19 CFR
351.309(c)(2). Additionally, parties are requested to provide their
case brief and rebuttal briefs in electronic format (e.g., Microsoft
Word, pdf, etc.). Interested parties, who wish to request a hearing or
to participate if one is requested, must submit a written request to
the Assistant Secretary for Import Administration within 30 days of the
date of publication of this notice. Requests should contain: (1) The
party's name, address, and telephone number; (2) the number of
participants; and (3) a list of issues to be discussed. See 19 CFR
351.310(c). Issues raised in the hearing will be limited to those
raised in case and rebuttal briefs. The Department will issue the final
results of this review, including the results of its analysis of issues
raised in any such written briefs or at the hearing, if held, not later
than 120 days after the date of publication of this notice.
Assessment Rates
The Department intends to issue appropriate assessment instructions
directly to CBP 15 days after the publication of the final results of
this review.
Normally, the Department instructs CBP to liquidate any entries
from the no-shipment producer at the deposit rate in effect on the date
of entry. However, in this case, because there was only a request for
review of the reseller and not the producer, we intend to liquidate
entries at the producer's rate. However, because Birlik does not have
its own rate, we intend to instruct CBP to liquidate entries at the
``all others'' rate from the investigation of 51.49 percent, in
accordance with the reseller policy.
Cash Deposit Requirements
The following deposit rates will be effective upon publication of
the final results of this administrative review for all shipments of
certain pasta from Turkey entered, or withdrawn from warehouse, for
consumption on or after the publication date, as provided by section
751(a)(2)(C) of the Act for Marsan, and for previously reviewed or
investigated companies, the cash deposit rate will continue to be the
company-specific rate published for the most recent final results in
which that manufacturer or exporter participated; (2) if the exporter
is not a firm covered in these reviews, a prior review, or the original
less-than-fair-value (LTFV) investigation, but the manufacturer is, the
cash deposit rate will be the rate established for the most recent
final results for the manufacturer of the merchandise; and (3) if
neither the exporter nor the manufacturer is a firm covered in this or
any previous review or the LTFV conducted by the Department, the cash
deposit rate will be 51.49 percent, the all-others rate established in
the LTFV. See Amended Final Determination. 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 and countervailing duties
prior to liquidation of the relevant entries during this review period.
Failure to comply with this requirement could result in the Secretary's
presumption that reimbursement of antidumping and countervailing duties
occurred and the subsequent assessment of double antidumping and
countervailing duties.
These preliminary results of review are issued and published in
accordance with sections 751(a)(1) and 777(i) of the Act and 19 CFR
351.221(b)(4).
Dated: April 22, 2011.
Paul Piquado,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-10434 Filed 4-28-11; 8:45 am]
BILLING CODE 3510-DS-P