Ripe Olives From Spain: Final Affirmative Determination of Sales at Less Than Fair Value, 28193-28195 [2018-12991]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 83, Number 117 (Monday, June 18, 2018)]
[Notices]
[Pages 28193-28195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12991]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-469-817]


Ripe Olives From Spain: Final Affirmative Determination of Sales 
at Less Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) determines that ripe 
olives from Spain are being, or are likely to be, sold in the United 
States at less than fair value (LTFV). The period of investigation 
(POI) is April 1, 2016, through March 31, 2017.

DATES: Applicable June 18, 2018.

FOR FURTHER INFORMATION CONTACT: Catherine Cartsos, Bryan Hansen or 
Peter Zukowski, AD/CVD Operations, Office I, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: 
(202) 482-1757, (202) 482-3683 or (202) 482-0189, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On January 26, 2018, Commerce published the Preliminary 
Determination of this LTFV investigation in which Commerce found that 
ripe olives from Spain were sold at LTFV.\1\ For a summary of the 
events that have occurred since Commerce published the Preliminary 
Determination, as well as a full discussion of the issues raised by 
parties for this final determination, see the Issues and Decision 
Memorandum.\2\
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    \1\ See Ripe Olives from Spain: Preliminary Affirmative 
Determination of Sales at Less Than Fair Value, Postponement of 
Final Determination, and Extension of Provisional Measures, 83 FR 
3677 (January 26, 2018) and accompanying Preliminary Decision 
Memorandum (Preliminary Decision Memorandum) (collectively, 
Preliminary Determination).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less than Fair Value 
Investigation of Ripe Olives from Spain,'' dated concurrently with, 
and hereby adopted by, this notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is ripe olives from 
Spain. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\3\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope). No interested party 
commented on the scope of the investigation as it appeared in the 
Initiation Notice during the scope comment period.\4\ In the context of 
supplemental questionnaire responses, two of the three mandatory 
respondents in the LTFV investigation reported sales of cocktail mixes 
but stated that they believe cocktail mixes are not within the scope of 
the investigation. In response, the petitioner \5\ commented that the 
respondents cannot unilaterally determine whether cocktail mixes are 
outside the scope. For the Preliminary Determination, we did not modify 
the scope language as it appeared in the Initiation Notice. We included 
all sales of cocktail mixes and their associated costs in our margin 
calculations, and solicited further information from parties concerning 
cocktail mixes for purposes of the final determination. In the April 3, 
2018, post-preliminary analysis we issued with respect to the scope of 
the investigation, we found that: (i) Ripe olives contained in cocktail 
mixes are in the scope, but that the remaining ingredients are not in 
the scope, and (ii) we clarified the scope by adding language 
concerning ripe olives contained in cocktail mixes.\6\ As a result of 
our analysis of comments received in response to this post-preliminary 
analysis, we have modified the scope of this investigation for this 
final determination. For a summary of the product coverage comments and 
rebuttal responses submitted to the record for this final 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Issues and Decision Memorandum.\7\
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    \3\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \4\ See Ripe Olives from Spain: Initiation of Less-Than-Fair-
Value Investigation, 82 FR 33054 (July 19, 2017) (Initiation 
Notice).
    \5\ The Coalition for Fair Trade on Ripe Olives.
    \6\ See Memorandum, ``Ripe Olives from Spain: Post-Preliminary 
Scope Clarification Decision Memorandum,'' dated April 3, 2018.
    \7\ See Issues and Decision Memorandum at Comment 1.
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Verification

    As provided in section 782(i) of the Act, in February and March 
2018, we conducted verification of the information reported by the 
mandatory respondents Aceitunas Guadalquivir S.L. (AG), Agro Sevilla 
Aceitunas S.COOP Andalusia (Agro Sevilla),\8\ and Angel Camacho 
Alimentacion S.L. (Camacho) for use in our final determination. We used 
standard verification procedures, including an examination of relevant 
accounting and production records and original source documents 
provided by the respondents.
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    \8\ In the Preliminary Determination the company name was 
spelled incorrectly as Agro Sevilla Aceitunas S.COOP Anndalusia. The 
correct spelling of the company name is Agro Sevilla Aceitunas 
S.COOP Andalusia.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs that were 
submitted by parties in this investigation are addressed in the Issues 
and Decision Memorandum. A list of these issues is attached to this 
notice as Appendix II. The Issues and Decision Memorandum is a public 
document and is on file electronically via Enforcement and Compliance's 
Antidumping and Countervailing Duty Centralized Electronic Service 
System (ACCESS). ACCESS is available to registered users at https://access.trade.gov, and to all parties in the Central Records Unit, room 
B8024 of the main Department of Commerce building. In addition, a 
complete version of the Issues and Decision Memorandum can be accessed 
directly at https://enforcement.trade.gov/frn/.

Changes Since the Preliminary Determination and Use of Partial Adverse 
Facts Available

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the margin calculations for 
AG, Agro Sevilla and Camacho.\9\ In addition, we revised the margin 
calculations for Camacho to reflect the application of partial facts 
available with an adverse inference pursuant to section 776(b) of

[[Page 28194]]

the Act. For a discussion of these changes, see the Issues and Decision 
Memorandum. We have also revised the estimated weighted-average dumping 
margin for all-other producers or exporters (the all-others rate).
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    \9\ See the ``Discussion of the Issues'' section of the Issues 
and Decision Memorandum and the company-specific analysis memoranda 
dated concurrently with, and hereby incorporated by, this notice.
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All-Others Rate

    Section 735(c)(5)(A) of the Act provides that in the final 
determination Commerce shall determine an estimated weighted-average 
dumping margin for all exporters or producers not individually 
examined. This rate shall be an amount equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters or producers individually examined, excluding any rates that 
are zero, de minimis or determined entirely under section 776 of the 
Act. In this investigation, we calculated estimated weighted-average 
dumping margins for the individually examined respondents that are not 
zero, de minimis, or based entirely on facts otherwise available. 
Because there are three estimated weighted-average dumping margins and 
doing so would not reveal business proprietary information, we 
calculated the all-others rate using a weighted-average of the 
estimated weighted-average dumping margins calculated for the examined 
respondents using each company's business proprietary data for the 
merchandise under consideration.\10\
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    \10\ For a complete analysis of the data, see Memorandum, 
``Less-Than-Fair-Value Investigation of Ripe Olives from Spain: 
Calculation of the All-Others Rate in the Final Determination,'' 
dated concurrently with this notice.
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Final Determination

    We determine that the following estimated weighted-average dumping 
margins exist:


------------------------------------------------------------------------
                                                 Estimated
                                                 weighted-  Adjusted for
                                                  average      export
             Exporter or producer                 dumping     subsidies
                                                  margin      (percent)
                                                 (percent)      \11\
------------------------------------------------------------------------
Aceitunas Guadalquivir S.L. \12\..............       17.46    \13\ 17.45
Agro Sevilla Aceitunas S.COOP Andalusia \14\..       25.50    \15\ 25.39
Angel Camacho Alimentacion....................       16.88    \16\ 16.83
S.L...........................................
All-Others....................................       20.04         19.98
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Disclosure

    We intend to disclose to interested parties the calculations and 
analysis performed in this final determination within five days of any 
public announcement or, if there is no public announcement, within five 
days of the date of publication of this notice in accordance with 19 
CFR 351.224(b).
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    \11\ The cash deposit rate is equal to the calculated estimated 
weighted-average dumping margin adjusted for the appropriate export 
subsidy offset(s). See final countervailing duty (CVD) 
determination, ``Ripe Olives from Spain: Final Affirmative 
Countervailing Duty Determination,'' signed concurrently with this 
notice.
    \12\ In the companion CVD investigation, this company's name is 
spelled as Aceitunas Guadalquivir S.L.U.
    \13\ See Memorandum, ``Final Determination Calculations for 
Aceitunas Guadalquivir, S.L.U.,'' dated concurrently with this 
notice.
    \14\ In the companion CVD investigation, this company's name is 
spelled as Agro Sevilla Aceitunas S.Coop.And.
    \15\ See Memorandum, ``Final Determination Calculations for Agro 
Sevilla Aceitunas S.Coop.And.,'' dated concurrently with this 
notice.
    \16\ See Memorandum, ``Final Determination Calculations for 
Angel Camacho Alimentacion S.L.,'' dated concurrently with this 
notice.
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Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of ripe olives from 
Spain as described in Appendix I of this notice, which were entered, or 
withdrawn from warehouse, for consumption on or after January 26, 2018, 
the date of publication of the Preliminary Determination of this 
investigation in the Federal Register.
    Pursuant to section 735(c)(1)(B) of the Act and 19 CFR 351.210(d), 
Commerce will instruct CBP to require a cash deposit as follows: (1) 
The cash deposit rate for the respondents listed above under Final 
Determination will be equal to their respondent-specific estimated 
weighted-average dumping margin; (2) if the exporter is not a 
respondent identified above, but the producer is, then the cash deposit 
rate will be equal to the respondent-specific estimated weighted-
average dumping margin established for that producer of the subject 
merchandise; (3) for all other producers or exporters of ripe olives to 
the United States, the cash deposit rate will be equal to the all-
others rate.
    Further, Commerce will instruct CBP to require a cash deposit equal 
to the estimated amount by which the normal value (NV) exceeds the U.S. 
price as shown above, adjusted where appropriate for export subsidies 
found in the final determination of the companion CVD investigation. 
Consistent with Commerce's practice, where the product under 
investigation is also subject to a concurrent CVD investigation, 
Commerce instructs CBP to require a cash deposit equal to the estimated 
weighted-average dumping margin, less the amount of the CVD determined 
to constitute an export subsidy.\17\ Therefore, in the event that a CVD 
order is issued and suspension of liquidation is resumed in the 
companion CVD investigation on ripe olives from Spain,\18\ Commerce 
will instruct CBP to require cash deposits adjusted by the amount of 
export subsidies, as appropriate. These adjustments are reflected in 
the final column of the rate chart, above. Until such suspension of 
liquidation is resumed in the companion CVD investigation, and so long 
as suspension of liquidation continues under this antidumping duty 
investigation, the cash deposit rates for this antidumping duty 
investigation will be the rates identified in the estimated weighted-
average dumping margin column in the rate chart, above.
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    \17\ See, e.g., Welded Line Pipe from the Republic of Turkey: 
Final Determination of Sales at Less Than Fair Value, 80 FR 61362, 
61364 (October 13, 2015); Notice of Final Determination of Sales at 
Less Than Fair Value and Negative Critical Circumstances 
Determination: Bottom Mount Combination Refrigerator-Freezers From 
the Republic of Korea, 77 FR 17413, 17417 (March 26, 2012).
    \18\ The provisional measures for the CVD investigation of ripe 
olives from Spain have currently expired (i.e., exceeded the maximum 
four-month period), and, therefore, no adjustment for countervailed 
export subsidies is warranted.
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    These suspension of liquidation instructions will remain in effect 
until further notice.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its final determination. 
Because the final determination in this proceeding is affirmative, in 
accordance with section 735(b)(2)(B) of the Act, the ITC will make its 
final determination as to whether the domestic industry in the United 
States is materially injured, or threatened with material injury, by 
reason of imports of ripe olives from Spain no later than 45 days after 
Commerce's final determination. If the ITC determines that material 
injury or threat of material injury does not exist, the proceeding will 
be terminated and all securities posted will be refunded or canceled. 
If the ITC determines that such injury does exist, Commerce will issue 
an antidumping duty order directing CBP to assess, upon further 
instruction by Commerce, antidumping duties on appropriate imports of 
the subject merchandise entered, or withdrawn from warehouse, for

[[Page 28195]]

consumption on or after the effective date of the suspension of 
liquidation.

Notification to Interested Parties

    This notice serves as a reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the return or destruction of APO materials, or 
conversion to judicial protective order, is hereby requested. Failure 
to comply with the regulations and the terms of an APO is a violation 
subject to sanction.
    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act.

    Dated: June 11, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The products covered by this investigation are certain processed 
olives, usually referred to as ``ripe olives.'' The subject 
merchandise includes all colors of olives; all shapes and sizes of 
olives, whether pitted or not pitted, and whether whole, sliced, 
chopped, minced, wedged, broken, or otherwise reduced in size; all 
types of packaging, whether for consumer (retail) or institutional 
(food service) sale, and whether canned or packaged in glass, metal, 
plastic, multilayered airtight containers (including pouches), or 
otherwise; and all manners of preparation and preservation, whether 
low acid or acidified, stuffed or not stuffed, with or without 
flavoring and/or saline solution, and including in ambient, 
refrigerated, or frozen conditions.
    Included are all ripe olives grown, processed in whole or in 
part, or packaged in Spain. Subject merchandise includes ripe olives 
that have been further processed in Spain or a third country, 
including but not limited to curing, fermenting, rinsing, oxidizing, 
pitting, slicing, chopping, segmenting, wedging, stuffing, 
packaging, or heat treating, or any other processing that would not 
otherwise remove the merchandise from the scope of the investigation 
if performed in Spain.
    Subject merchandise includes ripe olives that otherwise meet the 
definition above that are packaged together with non-subject 
products, where the smallest individual packaging unit (e.g., can, 
pouch, jar, etc.) of any such product--regardless of whether the 
smallest unit of packaging is included in a larger packaging unit 
(e.g., display case, etc.)--contains a majority (i.e., more than 50 
percent) of ripe olives by net drained weight. The scope does not 
include the non-subject components of such product.
    Excluded from the scope are: (1) Specialty olives \19\ 
(including ``Spanish-style,'' ``Sicilian-style,'' and other similar 
olives) that have been processed by fermentation only, or by being 
cured in an alkaline solution for not longer than 12 hours and 
subsequently fermented; and (2) provisionally prepared olives 
unsuitable for immediate consumption (currently classifiable in 
subheading 0711.20 of the Harmonized Tariff Schedule of the United 
States (HTSUS)).
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    \19\ Some of the major types of specialty olives and their 
curing methods are:
     ``Spanish-style'' green olives: Spanish-style green 
olives have a mildly salty, slightly bitter taste, and are usually 
pitted and stuffed. This style of olive is primarily produced in 
Spain and can be made from various olive varieties. Most are stuffed 
with pimento; other popular stuffings are jalapeno, garlic, and 
cheese. The raw olives that are used to produce Spanish-style green 
olives are picked while they are unripe, after which they are 
submerged in an alkaline solution for typically less than a day to 
partially remove their bitterness, rinsed, and fermented in a strong 
salt brine, giving them their characteristic flavor.
     ``Sicilian-style'' green olives: Sicilian-style olives 
are large, firm green olives with a natural bitter and savory 
flavor. This style of olive is produced in small quantities in the 
United States using a Sevillano variety of olive and harvested green 
with a firm texture. Sicilian-style olives are processed using a 
brine-cured method, and undergo a full fermentation in a salt and 
lactic acid brine for 4 to 9 months. These olives may be sold whole 
unpitted, pitted, or stuffed.
     ``Kalamata'' olives: Kalamata olives are slightly 
curved in shape, tender in texture, and purple in color, and have a 
rich natural tangy and savory flavor. This style of olive is 
produced in Greece using a Kalamata variety olive. The olives are 
harvested after they are fully ripened on the tree, and typically 
use a brine-cured fermentation method over 4 to 9 months in a salt 
brine.
     Other specialty olives in a full range of colors, 
sizes, and origins, typically fermented in a salt brine for 3 months 
or more.
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    The merchandise subject to this investigation is currently 
classifiable under subheadings 2005.70.0230, 2005.70.0260, 
2005.70.0430, 2005.70.0460, 2005.70.5030, 2005.70.5060, 
2005.70.6020, 2005.70.6030, 2005.70.6050, 2005.70.6060, 
2005.70.6070, 2005.70.7000, 2005.70.7510, 2005.70.7515, 
2005.70.7520, and 2005.70.7525 HTSUS. Subject merchandise may also 
be imported under subheadings 2005.70.0600, 2005.70.0800, 
2005.70.1200, 2005.70.1600, 2005.70.1800, 2005.70.2300, 
2005.70.2510, 2005.70.2520, 2005.70.2530, 2005.70.2540, 
2005.70.2550, 2005.70.2560, 2005.70.9100, 2005.70.9300, and 
2005.70.9700. Although HTSUS subheadings are provided for 
convenience and US Customs purposes, they do not define the scope of 
the investigation; rather, the written description of the subject 
merchandise is dispositive.

Appendix II--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Discussion of the Issues
    Comment 1: Clarify Scope to Include Ripe Olives Contained in 
Cocktail Mixes
    Comment 2: Particular Market Situation Allegation
    Comment 3: Whether Commerce Should Apply its Differential 
Pricing Methodology
    Comment 4: Agro Sevilla's and Camacho's Constructed Export Price 
Indirect Selling Expenses
    Comment 5: Camacho Corrections Presented at Verification
    Comment 6: Camacho Ministerial Error Regarding Mixed Currencies
    Comment 7: Camacho Cost Verification Findings
    Comment 8: Camacho Purchases of Olives from Affiliated Parties
    Comment 9: Camacho's Plantilla Price Adjustments
    Comment 10: Camacho's CEP Offset
    Comment 11: Camacho's Home Market Credit Expense
    Comment 12: Camacho's Revised Control Number
    Comment 13: Camacho's U.S. Sales of Merchandise Manufactured by 
an Unaffiliated Party
    Comment 14: Camacho's Margin Should Be Based on Adverse Facts 
Available
    Comment 15: AG Minor Corrections Presented During Sales and Cost 
Verifications
    Comment 16: AG Home Market Commission Expenses
    Comment 17: AG Freight Credit
    Comment 18: AG Whether Local Taxes should be included in the 
General and Administrative (G&A) Expenses
    Comment 19: AG Unexplained Cost Reconciliation Difference
    Comment 20: Whether Commerce Should Adjust AG's Reported Cost of 
Raw Materials to Reflect Consumption Costs versus POI Purchases
    Comment 21: Classification of Machinery Depreciation Expense
    Comment 22: Agro Sevilla Corrections Presented During Sales 
Verifications
    Comment 23: Agro Sevilla's Pick-Up Adjustment Expense
    Comment 24: Agro Sevilla's Unreported Pallet Revenues
    Comment 25: Agro Sevilla's Total Cost of Manufacturing
    Comment 26: Agro Sevilla's Financial Expenses
    Comment 27: Agro Sevilla's Affiliated Purchases
VI. Recommendation

[FR Doc. 2018-12991 Filed 6-15-18; 8:45 am]
 BILLING CODE 3510-DS-P