Certain Frozen Warmwater Shrimp From the Socialist Republic of Vietnam: Preliminary Results of Antidumping Duty New Shipper Review, 1053-1058 [2012-162]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 77, Number 5 (Monday, January 9, 2012)]
[Notices]
[Pages 1053-1058]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-162]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-552-802]


Certain Frozen Warmwater Shrimp From the Socialist Republic of 
Vietnam: Preliminary Results of Antidumping Duty New Shipper Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: On February 1, 2005, the Department of Commerce 
(``Department'') published in the Federal Register the antidumping duty 
order on certain frozen warmwater shrimp (``shrimp'') from the 
Socialist Republic of Vietnam (``Vietnam'').\1\ The Department is 
conducting a new shipper review (``NSR'') of the Order, covering the 
period of review (``POR'') of February 1, 2010, through January 31, 
2011. 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.
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    \1\ 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) (``Order'').

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DATES: Effective Date: January 9, 2012.

FOR FURTHER INFORMATION CONTACT: Susan Pulongbarit and Seth Isenberg, 
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-
4031 and (202) 482-0588.

SUPPLEMENTARY INFORMATION:

Background

    On February 28, 2011, pursuant to section 751(a)(2)(B)(i) of the 
Tariff Act of 1930, as amended (the ``Act''), and section 351.214(c) of 
the Department's

[[Page 1054]]

regulations, the Department received a NSR request from Thong Thuan 
Company Limited and its subsidiary company, Thong Thuan Seafood Company 
Limited (collectively, ``Thong Thuan''). Thong Thuan certified that it 
was the producer and exporter of the subject merchandise upon which the 
request was based. On March 23, 2011, the Department published a notice 
of initiation of the NSR of the Order for Thong Thuan.\2\ On April 1, 
2011, the Department issued its original antidumping duty questionnaire 
to Thong Thuan. Between April 29, 2011, and October 5, 2011, Thong 
Thuan submitted responses to the original and supplemental sections A, 
C, D, and Importer antidumping duty questionnaires.
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    \2\ See Certain Frozen Warmwater Shrimp From the Socialist 
Republic of Vietnam: Initiation of Antidumping Duty New Shipper 
Review, 76 FR 16384 (March 23, 2011).
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    On April 13, 2011, the Department sent Thong Thuan a letter 
requesting comments on surrogate country selection and information 
pertaining to valuing factors of production (``FOP''). On June 10, 
2011, and July 17, 2011, Thong Thuan submitted surrogate country 
comments and surrogate value (``SV'') data.\3\
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    \3\ See Thong Thuan's June 10, 2011 submission.
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    On September 7, 2011, the Department extended the deadline for the 
preliminary results of this review to November 9, 2011.\4\ On November 
1, 2011, the Department further extended the deadline to December 9, 
2011.\5\ On November 29, 2011, the Department fully extended the 
deadline to January 9, 2012.\6\
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    \4\ See Certain Frozen Warmwater Shrimp From the Socialist 
Republic of Vietnam: Extension of Time Limit for the Preliminary 
Results of the New Shipper Review, 76 FR 55350 (September 7, 2011).
    \5\ See Certain Frozen Warmwater Shrimp From the Socialist 
Republic of Vietnam: Extension of Time Limit for the Preliminary 
Results of the New Shipper Review, 76 FR 67418 (November 1, 2011).
    \6\ See Certain Frozen Warmwater Shrimp From the Socialist 
Republic of Vietnam: Extension of Time Limit for the Preliminary 
Results of the New Shipper Review, 76 FR 73594 (November 29, 2011).
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Scope of the Order

    The scope of the orders includes certain warmwater shrimp and 
prawns, whether frozen, wild-caught (ocean harvested) or farm-raised 
(produced by aquaculture), head-on or head-off, shell-on or peeled, 
tail-on or tail-off, \7\ deveined or not deveined, cooked or raw, or 
otherwise processed in frozen form.
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    \7\ ``Tails''' in this context means the tail fan, which 
includes the telson and the uropods.
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    The frozen warmwater shrimp and prawn products included in the 
scope of these orders, regardless of definitions in the Harmonized 
Tariff Schedule of the United States (``HTS''), are products which are 
processed from warmwater shrimp and prawns through freezing and which 
are sold in any count size.
    The products described above may be processed from any species of 
warmwater shrimp and prawns. Warmwater shrimp and prawns are generally 
classified in, but are not limited to, the Penaeidae family. Some 
examples of the farmed and wild-caught warmwater species include, but 
are not limited to, whiteleg shrimp (Penaeus vannemei), banana prawn 
(Penaeus merguiensis), fleshy prawn (Penaeus chinensis), giant river 
prawn (Macrobrachium rosenbergii), giant tiger prawn (Penaeus monodon), 
redspotted shrimp (Penaeus brasiliensis), southern brown shrimp 
(Penaeus subtilis), southern pink shrimp (Penaeus notialis), southern 
rough shrimp (Trachypenaeus curvirostris), southern white shrimp 
(Penaeus schmitti), blue shrimp (Penaeus stylirostris), western white 
shrimp (Penaeus occidentalis), and Indian white prawn (Penaeus 
indicus).
    Frozen shrimp and prawns that are packed with marinade, spices or 
sauce are included in the scope of these orders. In addition, food 
preparations (including dusted shrimp), which are not ``prepared 
meals,'' that contain more than 20 percent by weight of shrimp or prawn 
are also included in the scope of these orders.
    Excluded from the scope are: (1) Breaded shrimp and prawns (HTS 
subheading 1605.20.10.20); (2) shrimp and prawns generally classified 
in the Pandalidae family and commonly referred to as coldwater shrimp, 
in any state of processing; (3) fresh shrimp and prawns whether shell-
on or peeled (HTS subheadings 0306.23.00.20 and 0306.23.00.40); (4) 
shrimp and prawns in prepared meals (HTS subheading 1605.20.05.10); (5) 
dried shrimp and prawns; (6) Lee Kum Kee's shrimp sauce; \8\ (7) canned 
warmwater shrimp and prawns (HTS subheading 1605.20.10.40); and (8) 
certain battered shrimp. Battered shrimp is a shrimp-based product: (1) 
That is produced from fresh (or thawed-from-frozen) and peeled shrimp; 
(2) to which a ``dusting'' layer of rice or wheat flour of at least 95 
percent purity has been applied; (3) with the entire surface of the 
shrimp flesh thoroughly and evenly coated with the flour; (4) with the 
non-shrimp content of the end product constituting between four and 10 
percent of the product's total weight after being dusted, but prior to 
being frozen; and (5) that is subjected to individually quick frozen 
(``IQF'') freezing immediately after application of the dusting layer. 
When dusted in accordance with the definition of dusting above, the 
battered shrimp product is also coated with a wet viscous layer 
containing egg and/or milk, and par-fried.
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    \8\ The specific exclusion for Lee Kum Kee's shrimp sauce 
applies only to the scope in the PRC case.
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    The products covered by these orders are currently classified under 
the following HTS subheadings: 0306.13.00.03, 0306.13.00.06, 
0306.13.00.09, 0306.13.00.12, 0306.13.00.15, 0306.13.00.18, 
0306.13.00.21, 0306.13.00.24, 0306.13.00.27, 0306.13.00.40, 
1605.20.10.10, and 1605.20.10.30. These HTS subheadings are provided 
for convenience and for customs purposes only and are not dispositive, 
but rather the written description of the scope of these orders is 
dispositive.\9\
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    \9\ On April 26, 2011, the Department amended the antidumping 
duty order to include dusted shrimp, pursuant to the U.S. Court of 
International Trade (``CIT'') decision in Ad Hoc Shrimp Trade Action 
Committee v. United States, 703 F. Supp. 2d 1330 (CIT 2010) and the 
U.S. International Trade Commission (``ITC'') determination, which 
found the domestic like product to include dusted shrimp. Because 
the amendment of the antidumping duty order occurred after this POR, 
dusted shrimp continue to be excluded in this review. See Certain 
Frozen Warmwater Shrimp From Brazil, India, the People's Republic of 
China, Thailand, and the Socialist Republic of Vietnam: Amended 
Antidumping Duty Orders in Accordance with Final Court Decision, 76 
FR 23227 (April 26, 2011); see also, Ad Hoc Shrimp Trade Action 
Committee v. United States, 703 F. Supp. 2d 1330 (CIT 2010) (``Ad 
Hoc'') and Frozen Warmwater Shrimp from Brazil, China, India, 
Thailand, and Vietnam (Investigation Nos. 731-TA-1063, 1064, 1066-
1068 (Review), USITC Publication 4221, March 2011 (``ITC Review 
Final'').
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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.\10\ We calculated normal value 
(``NV'') in accordance with section 773(c) of the Act, which applies to 
NME countries.
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    \10\ See Certain Frozen Fish Fillets from the Socialist Republic 
of Vietnam: Final Results of the Antidumping Duty Administrative 
Review and New Shipper Reviews, 74 FR 11349 (March 17, 2009).
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Separate Rate Determination

    In proceedings involving NME countries, there is a rebuttable 
presumption that all companies within the country are subject to 
government control and, thus, should be assessed a single antidumping 
duty rate. It is the

[[Page 1055]]

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 NSR, Thong Thuan submitted complete responses to the 
separate rate section of the Department's NME questionnaire. The 
evidence submitted by Thong Thuan includes government laws and 
regulations on corporate ownership, business licenses, and narrative 
information regarding its operations and selection of management. 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 Thong Thuan.

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.\11\
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    \11\ 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).
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    In its questionnaire responses, Thong Thuan submitted evidence 
indicating an absence of de facto government control over its export 
activities. Specifically, this evidence indicates that: (1) Thong Thuan 
sets its own export prices independent of the government and without 
the approval of a government authority; (2) Thong Thuan retains the 
proceeds from its sales and makes independent decisions regarding the 
disposition of profits or financing of losses; (3) Thong Thuan 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 
company's use of export revenues. Therefore, the Department 
preliminarily finds that Thong Thuan has established prima facie that 
it qualifies for a separate rate 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 sale made by Thong Thuan in this NSR.\12\ We found 
that the sale by Thong Thuan was made on a bona fide basis.\13\ Based 
on our investigation into the bona fide nature of the sale, the 
questionnaire responses submitted by Thong Thuan, and the company's 
eligibility for separate rates (see Separate Rate Determination section 
above), we preliminarily determine that Thong Thuan has met the 
requirement to qualify as a new shipper during this POR. Therefore, for 
the purposes of these preliminary results, we are treating Thong 
Thuan's sale of subject merchandise to the United States as an 
appropriate transaction for this NSR.
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    \12\ See, e.g., Fourth New Shipper Review of Certain Frozen 
Warmwater Shrimp From the Socialist Republic of Vietnam: Final 
Results of Antidumping Duty New Shipper Review, 76 FR 45775 (August 
1, 2011).
    \13\ For more detailed discussion of this issue, see Memorandum 
to the File, through Scot T. Fullerton, Program Manager, Office IX, 
from Susan Pulongbarit, International Trade Analyst, ``Bona Fide 
Nature of the Sale in the Antidumping Duty New Shipper Review of 
Certain Warmwater Shrimp from the Socialist Republic of Vietnam: 
Thong Thuan Seafood Company Limited and its subsidiary company, 
Thong Thuan Seafood Company Limited,'' dated concurrently with this 
notice.
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Surrogate Country

    When the Department conducts a review of 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 FOPs, valued in a surrogate market 
economy (``ME'') 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 ME countries that are: (1) 
At a level of economic development comparable to that of the NME 
country; and (2) significant producers of comparable merchandise. 
Further, pursuant to section 351.408(c)(2) of the Department's 
regulations, the Department will normally value FOPs in a single 
country, except for labor. The sources of the surrogate factor values 
are discussed under the ``Normal Value'' section below.\14\
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    \14\ See also Memorandum to the File, through Scot T. Fullerton, 
Program Manager, Office 9, ``Fifth New Shipper Review of Frozen 
Warmwater Shrimp from Vietnam: Surrogate Values for the Preliminary 
Results,'' dated concurrently with this notice (``SV Memo'').
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    As noted above, on April 13, 2011, the Department sent Thong Thuan 
a letter requesting comments on surrogate country selection and 
information pertaining to valuing FOPs. On June 10, 2011, and June 17, 
2011, the Department received comments from Thong Thuan suggesting that 
the Department select Bangladesh as the surrogate country, as well as 
Bangladeshi SV data.\15\
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    \15\ See Thong Thuan's June 10, 2011, and June 17, 2011 
submission.
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    Pursuant to its practice, the Department received a list of 
potential surrogate countries from Import Administration's Office of 
Policy (``OP'').\16\ The OP determined that Bangladesh, Pakistan, 
India, Sri Lanka, the Philippines, and Indonesia were at a comparable 
level of economic development to Vietnam.\17\ The Department considers 
the six countries identified by the OP in its Surrogate Country List as 
``equally comparable in terms of economic development.''\18\ Thus, we 
find that Bangladesh, Pakistan, India, Sri Lanka, the Philippines, and 
Indonesia are all at an economic level of development equally 
comparable to that of Vietnam. We note that the Surrogate Country List 
is a non-

[[Page 1056]]

exhaustive list of economically comparable countries.
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    \16\ See Letter to All Interested Parties, from Scot T. 
Fullerton, Program Manager, regarding New Shipper Review of 
Warmwater Shrimp from the Socialist Republic of Vietnam: Surrogate 
Country Selection, dated April 13, 2011, at Attachment I 
(``Surrogate Country List'').
    \17\ Id.
    \18\ Id.
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    Thong Thuan submitted evidence that Bangladesh, Pakistan, India, 
Sri Lanka, the Philippines and Indonesia are all significant producers 
of comparable merchandise.\19\ However, while we find that these 
countries are economically comparable to Vietnam and produce comparable 
merchandise, we note that the record contains limited publicly 
available SV factors of production (``FOP'') information for India and 
Indonesia, but no publicly available SV FOP information for Pakistan, 
Sri Lanka, or the Philippines.
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    \19\ See Thong Thuan's June 10, 2011 submission at Exhibit 1.
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    With regard to Bangladesh, the record contains publicly available 
SV factor information for the majority of FOPs. Given the above-cited 
facts, we find that the information on the record shows that Bangladesh 
is an appropriate surrogate country 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 for the majority of the factors of production.

U.S. Price

    In accordance with section 772(a) of the Act, the Department 
calculated the export price (``EP'') for sales to the United States, 
because the first sale to an unaffiliated party was made before the 
date of importation. The Department calculated EP based on the price to 
the unaffiliated purchaser in the United States. In accordance with 
section 772(c) of the Act, as appropriate, we deducted from the 
starting price to the unaffiliated purchaser foreign inland freight and 
brokerage and handling. Each of these services was either provided by 
an NME vendor or paid for using an NME currency. Thus, we based the 
deduction of these movement charges on SVs. Additionally, for 
international freight provided by an ME provider and paid in an ME 
currency, we used the actual cost per kilogram of the freight.\20\
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    \20\ See SV Memo for details regarding the SVs for movement 
expenses.
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Normal Value

A. Methodology

    Section 773(c)(1)(B) of the Act provides that the Department shall 
determine the NV using an 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 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 an FOP methodology if: (1) the merchandise is 
exported from an NME 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.

B. Factor Valuations \21\
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    \21\ In accordance with section 351.301(c)(3)(ii) of the 
Department's regulations, for the final results in an antidumping 
NSR, interested parties may submit publicly available information to 
value FOPs within 20 days after the date of publication of the 
preliminary results.
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    In accordance with 19 CFR 351.408(c)(1), the Department will 
normally use publicly available information to value the FOPs, but when 
a producer sources an input from an ME country and pays for it in an ME 
currency, the Department may value the factor using the actual price 
paid for the input. During the POR, Thong Thuan reported that it 
purchased a certain input from an ME supplier and paid for the input in 
an ME currency.\22\ The Department confirmed that this input was 
produced in a ME country through supplemental questionnaires.
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    \22\ See Letter from Thong Thuan, to Secretary of Commerce, 
regarding Frozen Warmwater Shrimp from the Socialist Republic of 
Vietnam, dated June 2, 2011, at Exhibit D-4.
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    The Department has a rebuttable presumption that ME input prices 
are the best available information for valuing an input when the total 
volume of the input purchased from all ME sources during the period of 
investigation or review exceeds 33 percent of the total volume of the 
input purchased from all sources during the period.\23\ In these cases, 
unless case-specific facts provide adequate grounds to rebut the 
Department's presumption, the Department will use the weighted-average 
ME purchase price to value the input. Alternatively, when the volume of 
an NME firm's purchases of an input from ME suppliers during the period 
is below 33 percent of its total volume of purchases of the input 
during the period, but where these purchases are otherwise valid and 
there is no reason to disregard the prices, the Department will weight-
average the ME purchase price with an appropriate SV according to their 
respective shares of the total volume of purchases, unless case-
specific facts provide adequate grounds to rebut the presumption.\24\ 
When a firm has made ME input purchases that may have been dumped or 
subsidized, are not bona fide, or are otherwise not acceptable for use 
in a dumping calculation, the Department will exclude them from the 
numerator of the ratio to ensure a fair determination of whether valid 
ME purchases meet the 33-percent threshold.\25\ Because Thong Thuan's 
ME purchase of broodstock exceeded the 33-percent threshold, we have 
valued this input using the ME purchase price paid by Thong Thuan.
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    \23\ See Antidumping Methodologies: Market Economy Inputs, 
Expected Non-Market Economy Wages, Duty Drawback; and Request for 
Comments, 71 FR 61716, 61717-18 (October 19, 2006) (``Antidumping 
Methodologies'').
    \24\ Id.
    \25\ Id.
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    In accordance with section 773(c) of the Act, we calculated NV 
based on FOPs reported by Thong Thuan for the POR. To calculate NV, we 
multiplied the reported per-unit factor-consumption rates by publicly 
available Bangladeshi SVs. In selecting SVs, 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 SVs 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 (``CAFC'') 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.
    In accordance with the OTCA 1988 legislative history, the 
Department continues to apply its long-standing practice of 
disregarding SVs if it has a reason to believe or suspect the source 
data may be subsidized.\26\ In this regard, the Department has 
previously found that it is appropriate to disregard such prices from 
India, Indonesia, South Korea, and Thailand because we have determined 
that these countries maintain broadly available, non-

[[Page 1057]]

industry specific export subsidies.\27\ Based on the existence of these 
subsidy programs that were generally available to all exporters and 
producers in these countries at the time of the POR, the Department 
finds that it is reasonable to infer that all exporters from India, 
Indonesia, South Korea, and Thailand may have benefitted from these 
subsidies.
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    \26\ See Omnibus Trade and Competitiveness Act of 1988, Conf. 
Report to Accompany H.R. 3, H.R. Rep. No. 576, 100th Cong., 2nd 
Sess. (1988) (``OTCA 1988'') at 590.
    \27\ See, e.g., Carbazole Violet Pigment 23 from India: Final 
Results of the Expedited Five-year (Sunset) Review of the 
Countervailing Duty Order, 75 FR 13257 (March 19, 2010) and 
accompanying Issues and Decision Memorandum at 4-5; Certain Cut-to-
Length Carbon-Quality Steel Plate from Indonesia: Final Results of 
Expedited Sunset Review, 70 FR 45692 (August 8, 2005) and 
accompanying Issues and Decision Memorandum at 4; see Corrosion-
Resistant Carbon Steel Flat Products from the Republic of Korea: 
Final Results of Countervailing Duty Administrative Review, 74 FR 
2512 (January 15, 2009) and accompanying Issues and Decision 
Memorandum at 17, 19-20; see Final Affirmative Countervailing Duty 
Determination: Certain Hot-Rolled Carbon Steel Flat Products from 
Thailand, 66 FR 50410 (October 3, 2001) and accompanying Issues and 
Decision Memorandum at 23.
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    Additionally, we disregarded prices from NME countries.\28\ 
Moreover, imports that were labeled as originating from an 
``unspecified'' country were excluded from the average value, because 
the Department could not be certain that they were not from either an 
NME country or a country with general export subsidies.\29\ Lastly, the 
Department has also excluded imports identified as being from 
Bangladesh into Bangladesh because there is no information on the 
record regarding what these data represent (e.g., another category of 
unspecified imports or the result of an error in reporting). Thus, 
these data do not represent the best available information upon which 
to rely for valuation purposes.\30\
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    \28\ See Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, from the People's Republic of China; Final Results of 
1998-1999 Administrative Review, Partial Rescission of Review, and 
Determination Not To Revoke Order in Part, 66 FR 1953 (January 10, 
2001) and accompanying Issues and Decision Memorandum at Comment 1.
    \29\ See Certain Frozen Warmwater Shrimp From the Socialist 
Republic of Vietnam: Final Results and Final Partial Rescission of 
Antidumping Duty Administrative Review, 76 FR56158 (September 12, 
2011) (``Fifth Vietnam Shrimp AR'') unchanged at Certain Frozen 
Warmwater Shrimp From the Socialist Republic of Vietnam: Amended 
Final Results and Final Partial Rescission of Antidumping Duty 
Administrative Review, 76 FR 64307 (October 18, 2011) (``Fifth 
Vietnam Shrimp Amended Final'').
    \30\ See Certain Frozen Warmwater Shrimp from the Socialist 
Republic of Vietnam: Final Results and Partial Rescission of 
Antidumping Duty Administrative Review, 75 FR 47771 (August 9, 2010) 
and accompanying Issues and Decision Memorandum at Comment 6.
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    Therefore, based on the information currently available, we have 
not used prices from these countries either in calculating the 
Bangladeshi import-based SVs or in calculating ME input values. In 
instances where an ME input was obtained solely from suppliers located 
in these countries, we used Bangladeshi import-based SVs to value the 
input.
    The Department used UN ComTrade Statistics, provided by the UN 
Department of Economic and Social Affairs' Statistics Division, as its 
primary source of Bangladeshi SV data to value the raw material and 
packing material inputs that Thong Thuan used to produce the 
merchandise under review during the POR, except where listed below.\31\ 
For a detailed description of all SVs, see SV Memo. The data represents 
cumulative values for the calendar year 2007, for inputs classified by 
the Harmonized Commodity Description and Coding System number. As noted 
above, for each input value, we used the average value per unit for 
that input imported into Bangladesh from all countries that the 
Department has not previously determined to be NME countries, countries 
that the Department has determined to be countries which subsidized 
exports (i.e., Indonesia, South Korea, Thailand, and India), imports 
from unspecified countries and imports from Bangladesh into Bangladesh.
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    \31\ This can be accessed online at: https://www.unstats.un.org/unsd/comtrade/.
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    It is the Department's practice to calculate price index adjustors 
to inflate or deflate, as appropriate, SVs that are not contemporaneous 
with the POR using the wholesale price index (``WPI'') for the subject 
country.\32\ However, in this case, a WPI was not available for 
Bangladesh. Therefore, where publicly available information 
contemporaneous with the POR with which to value factors could not be 
obtained, SVs were adjusted using the Consumer Price Index (``CPI'') 
rate for Bangladesh, or the WPI for Indonesia (for certain SVs where 
Bangladeshi data could not be obtained), as published in the 
International Financial Statistics of the International Monetary Fund.
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    \32\ 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).
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    Where necessary, the Department made currency conversions into U.S. 
dollars, in accordance with section 773A(a) of the Act, based on the 
exchange rates in effect on the dates of the U.S. sales, as certified 
by the Federal Reserve Bank. We relied on the daily exchange rates 
posted on the Import Administration Web site.\33\
---------------------------------------------------------------------------

    \33\ See https://www.trade.gov/ia/, see also SV Memo.
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    Consistent with the Fifth Vietnam Shrimp AR, we valued labor using 
2009 data collected by the Bangladesh Bureau of Statistics. We inflated 
the value using the POR average CPI rate.\34\
---------------------------------------------------------------------------

    \34\ See Fifth Vietnam Shrimp AR, unchanged at Fifth Vietnam 
Shrimp Amended Final.
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    We valued electricity using data from the Bangladesh Ministry of 
Power, Energy, & Mineral Resources. This information was published on 
their Power Division's Web site. We valued water using 2007 data from 
the Asian Development Bank. We inflated the value using the POR average 
CPI rate. We valued diesel using data published by the World Bank in 
``Bangladesh: Transport at a Glance,'' published in June 2006. We 
inflated the value using the POR average CPI rate.
    To value truck freight, we used data published in 2008 Statistical 
Yearbook of Bangladesh published by the Bangladesh Bureau of 
Statistics. We inflated the value using the POR average CPI rate. We 
valued brokerage and handling using a price list of export procedures 
necessary to export a standardized cargo of goods in India. The price 
list is compiled based on a survey case study of the procedural 
requirements for trading a standard shipment of goods by ocean 
transport in India that is published in Doing Business 2010: India, 
published by the World Bank. Because the price is for 2009, we inflated 
the value using the POR average CPI rate.
    We valued the by-product using shell scrap values using a surrogate 
value for shrimp by-products based on a purchase price quote for wet 
shrimp shells from an Indonesian buyer of crustacean shells. Although 
we recognize that Thong Thuan reported by-products other than shells 
and that this surrogate value is not from Bangladesh, the primary 
surrogate country, this information represents the best information on 
the record and has been used in past case segments.\35\ Moreover, we 
also note that this is the only surrogate value on the record for by-
products, and as a consequence, is being used for these preliminary 
results. We

[[Page 1058]]

inflated the value using the POR average CPI rate.\36\
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    \35\ See SV Memo which contains the following memorandum: 
Memorandum to Barbara E. Tillman, Director, Office of AD/CVD 
Enforcement VII, through Maureen Flannery, Program Manager, Office 
of AD/CVD Enforcement VII, from Christian Hughes and Adina 
Teodorescu, Case Analysts, ``Surrogate Valuation of Shell Scrap: 
Freshwater Crawfish Tail Meat from the People's Republic of China 
(PRC), Administrative Review 9/1/00-8/31/00 and New Shipper Reviews 
9/1/00-8/31/01 and 9/1/00-10/15/01.''
    \36\ Id.
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    To value factory overhead, selling, general and administrative 
expenses, and profit, we used the simple average of the 2009-2010 
financial statement of Apex Foods Limited and the 2008-2009 financial 
statement of Gemini Seafood Limited, both of which are Bangladeshi 
shrimp processors.\37\
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    \37\ See SV Memo at Exhibit 7.
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Preliminary Results of Review

    The Department has preliminarily determined that the following 
dumping margin exists for the period February 1, 2010, through January 
31, 2011:

------------------------------------------------------------------------
                     Manufacturer/exporter                        Margin
------------------------------------------------------------------------
Thong Thuan Company Limited and its subsidiary company, Thong      0.00%
 Thuan Seafood Company Limited.................................
------------------------------------------------------------------------

Disclosure

    The Department will disclose to parties of this proceeding the 
calculation performed in reaching the preliminary results within five 
days of the date of publication of this notice in accordance with 
section 351.224(b) of the Department's regulations.

Comments

    In accordance with section 351.301(c)(3)(ii) of the Department's 
regulations, for the final results, 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 section 351.301(c)(1) of the Department's regulations, 
for the final results of this NSR, interested parties may submit 
factual information to rebut, clarify, or correct factual information 
submitted by an interested party within 10 days of the applicable 
deadline for submission of such factual information. However, the 
Department notes that section 351.301(c)(1) of the Department's 
regulations permits new information only insofar as it rebuts, 
clarifies, or corrects information recently placed on the record.\38\
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    \38\ 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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    In accordance with section 351.309(c)(ii) of the Department's 
regulations, interested parties may submit case briefs and/or written 
comments no later than 30 days after the date of publication of the 
preliminary results of this NSR. In accordance with section 351.309(d) 
of the Department's regulations, rebuttal briefs and rebuttals to 
written comments, limited to issues raised in such briefs or comments, 
may be filed no later than five days after the deadline for submitting 
the case briefs. 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.\39\ 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.
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    \39\ See section 351.310(c) of the Department's regulations.
---------------------------------------------------------------------------

    The Department intends to issue the final results of this NSR, 
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 351.214(i) of the Department's regulations.

Assessment Rates

    Upon issuance of the final results, the Department will determine, 
and CBP shall assess, antidumping duties on all appropriate entries 
covered by this NSR. The Department intends to issue assessment 
instructions to CBP 15 days after the publication date of the final 
results of this NSR. 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 
section 351.212(b)(1) of the Department's regulations, we will 
calculate importer-specific (or customer) ad valorem 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 review is above 
de minimis.

Cash-Deposit Requirements

    The following cash deposit requirement will be effective upon 
publication of the final results of this NSR for all shipments of 
subject merchandise produced and exported from Thong Thuan 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 Thong Thuan, the cash 
deposit rate will be the rate established in the final results of this 
NSR. If the cash deposit rate calculated in the final results is zero 
or de minimis, no cash deposit will be required for the specific 
producer-exporter combination listed above; (2) for subject merchandise 
exported by Thong Thuan but not manufactured by Thong Thuan, the cash 
deposit rate will continue to be the Vietnam-wide rate (i.e., 25.76 
percent); and (3) for subject merchandise manufactured by Thong Thuan, 
but exported by any other party, the cash deposit rate will be the 
Vietnam-wide rate (i.e., 25.76 percent). The cash deposit requirement, 
when imposed, shall remain in effect until further notice.

Notification to Importers

    This notice serves as a preliminary reminder to importers of its 
responsibility under section 351.402(f)(2) of the Department's 
regulations 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 notice in accordance with 
sections 751(a)(2)(B) and 777(i) of the Act, and sections 351.214(h) 
and 351.221(b)(4) of the Department's regulations.

    Dated: January 3, 2012.
Christian Marsh,
Acting Assistant Secretary for Import Administration.
[FR Doc. 2012-162 Filed 1-6-12; 8:45 am]
BILLING CODE 3510-DS-P