[Federal Register: August 21, 2007 (Volume 72, Number 161)]
[Notices]
[Page 46604-46606]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21au07-41]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-552-801]
Certain Frozen Fish Fillets from Vietnam: Notice of Initiation
and Preliminary Results of Changed Circumstances Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (``Department'') has received
information sufficient to warrant initiation of a changed circumstances
review of the antidumping duty order on certain frozen fish fillets
from Vietnam. Based on a request filed by Vinh Hoan Co., Ltd. (``Vinh
Hoan''), the Department is initiating a changed circumstances review
and preliminarily determining that Vinh Hoan Corporation (``Vinh Hoan
Corp.'') is the successor-in-interest to Vinh Hoan, a respondent in the
original investigation and three recent administrative reviews.
EFFECTIVE DATE: August 21, 2007.
FOR FURTHER INFORMATION CONTACT: Javier Barrientos, AD/CVD Operations,
Office 9, Import Administration, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue, NW, Washington,
DC 20230; telephone: 202-482-2243.
SUPPLEMENTARY INFORMATION:
Background
The antidumping duty order for certain frozen fish fillets from
Vietnam was published on August 12, 2003. See Notice of Antidumping
Duty Order: Certain Frozen Fish Fillets from the Socialist Republic of
Vietnam, 68 FR 47909 (August 12, 2003) (``Vietnam Fish Order''). As
part of the antidumping duty order on certain frozen fish fillets from
Vietnam, Vinh Hoan received an antidumping duty cash deposit rate of
37.94 percent. Id. Moreover, as part of the final results of the first
administrative review, Vinh Hoan received a cash deposit rate of 6.81
percent. See Certain Frozen Fish Fillets From the Socialist Republic of
Vietnam: Final Results of the First Administrative Review, 71 FR 14170
(March 21, 2006). The Department initiated on Vinh Hoan in both the
second and third administrative reviews; however, both reviews with
regard to Vinh Hoan were subsequently rescinded. See Certain Frozen
Fish Fillets from the Socialist Republic of Vietnam: Rescission, in
Part, and Extension of Time Limit for Preliminary Results of the Second
Antidumping Duty Administrative Review, 71 FR 6266 (February 7, 2006);
and Certain Frozen Fish Fillets From the Socialist Republic of Vietnam:
Partial Rescission and Notice of Intent To Rescind, in Part, and
Partial Extension of Time Limit for Preliminary Results of the Third
Antidumping Duty Administrative Review, 72 FR 10981 (March 12, 2007),
respectively.
On June 26, 2007, Vinh Hoan filed a submission requesting that the
Department conduct a changed circumstances review of the antidumping
duty order on certain frozen fish fillets from Vietnam to confirm that
Vinh Hoan Corp. is the successor-in-interest to Vinh Hoan.\1\ In its
submission, Vinh Hoan provided information on the events leading to the
transition from Vinh Hoan to Vinh Hoan Corp. Vinh Hoan also provided
documentation relating to its change from a limited liability company
(LLC) to a joint stock company. In addition, Vinh Hoan provided
documentation relating to the ownership structure and management,
organizational structure, customer base, accounting processes, supplier
relationships, and products. As part of its June 26, 2007, submission,
Vinh Hoan requested that the
[[Page 46605]]
Department conduct an expedited review.
---------------------------------------------------------------------------
\1\ See Letter from Vinh Hoan, to the Department, regarding
Request for Expedited Changed Circumstances Determination, Certain
Frozen Fish Fillets from Vietnam (Case No. A-552-801) (June 26,
2007) (``Vinh Hoan's CCR Request'').
---------------------------------------------------------------------------
Scope of Order
The product covered by this order is frozen fish fillets, including
regular, shank, and strip fillets and portions thereof, whether or not
breaded or marinated, of the species Pangasius Bocourti, Pangasius
Hypophthalmus (also known as Pangasius Pangasius), and Pangasius
Micronemus. Frozen fish fillets are lengthwise cuts of whole fish. The
fillet products covered by the scope include boneless fillets with the
belly flap intact (``regular'' fillets), boneless fillets with the
belly flap removed (``shank'' fillets), boneless shank fillets cut into
strips (``fillet strips/ finger''), which include fillets cut into
strips, chunks, blocks, skewers, or any other shape. Specifically
excluded from the scope are frozen whole fish (whether or not dressed),
frozen steaks, and frozen belly-flap nuggets. Frozen whole dressed fish
are deheaded, skinned, and eviscerated. Steaks are bone-in, cross-
section cuts of dressed fish. Nuggets are the belly-flaps.
The subject merchandise will be hereinafter referred to as frozen
``basa'' and ``tra'' fillets, which are the Vietnamese common names for
these species of fish. These products are classifiable under tariff
article codes 1604.19.4000\2\, 1604.19.5000\3\, 0305.59.4000\4\,
0304.29.6033\5\ (Frozen Fish Fillets of the species Pangasius including
basa and tra) of the Harmonized Tariff Schedule of the United States
(``HTSUS'').\6\ This order covers all frozen fish fillets meeting the
above specification, regardless of tariff classification. Although the
HTSUS subheading is provided for convenience and customs purposes, our
written description of the scope of the order is dispositive.
---------------------------------------------------------------------------
\2\ See Memorandum to the File, from Cindy Robinson, Senior Case
Analyst, Office 9, Import Administration, Subject: Frozen Fish
Fillets: Third Addition of Harmonized Tariff Number, (March 1,
2007). This HTS went into effect on March 1, 2007.
\3\ See Memorandum to the File, from Cindy Robinson, Senior Case
Analyst, Office 9, Import Administration, Subject: Frozen Fish
Fillets: Third Addition of Harmonized Tariff Number, (March 1,
2007). This HTS went into effect on March 1, 2007.
\4\ See Memorandum to the File, from Cindy Robinson, Senior Case
Analyst, Office 9, Import Administration, Subject: Frozen Fish
Fillets: Second Addition of Harmonized Tariff Number, (February 2,
2007). This HTS went into effect on February 1, 2007.
\5\ See Memorandum to the File, from Cindy Robinson, Senior Case
Analyst, Office 9, Import Administration, Subject: Frozen Fish
Fillets: Addition of Harmonized Tariff Number, (January 30, 2007).
This HTS went into effect on February 1, 2007.
\6\ Until July 1, 2004, these products were classifiable under
tariff article codes 0304.20.60.30 (Frozen Catfish Fillets),
0304.20.60.96 (Frozen Fish Fillets, NESOI), 0304.20.60.43 (Frozen
Freshwater Fish Fillets) and 0304.20.60.57 (Frozen Sole Fillets) of
the HTSUS. Until February 1, 2007, these products were classifiable
under tariff article code 0304.20.60.33 (Frozen Fish Fillets of the
species Pangasius including basa and tra) of the HTSUS.
---------------------------------------------------------------------------
Initiation of Changed Circumstances Review
Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended
(``Act''), the Department will conduct a changed circumstances review
upon receipt of information concerning, or a request from an interested
party for a review of, an antidumping duty order which shows changed
circumstances sufficient to warrant a review of the order.
Additionally, section 751(b)(4) of the Act states that the Department
shall not conduct a review less than 24 months after the date of
publication of the less-than-fair-value determination, in the absence
of good cause. As noted above, Vinh Hoan and Vinh Hoan Corp. filed
their request for a changed circumstances review on June 26, 2007, well
over 24 months after the publication of the order. See Vietnam Fish
Order.
Preliminary Results of the Review
Pursuant to section 751(b) of the Act, and 19 CFR 351.216, we will
conduct a changed circumstances review upon receipt of information
concerning, or a request from an interested party for a review of, an
antidumping duty finding or order that shows changed circumstances
sufficient to warrant a review of the order. The information submitted
by Vinh Hoan stating the change in the entity's legal status, from an
LLC to a corporation, demonstrates changed circumstances sufficient to
warrant a review. See 19 CFR 351.216(d).
As noted above in the ``Background'' section of this notice, in its
request for a changed circumstances review, Vinh Hoan stated that it
underwent a change in legal status. Vinh Hoan was converted from an LLC
to a joint stock company and renamed Vinh Hoan Corp. Subsequent to the
name change, the majority owner of Vinh Hoan and the controlling stock
holder of Vinh Hoan Corp. remained the same (Ms. Trung Thi Le Khanh).
In addition, Ms. Trung still controls Vinh Hoan Corp. as its general
director.
In determining whether one company is the successor-in-interest to
another for purposes of applying the antidumping duty law, the
Department examines several factors including, but not limited to,
changes in: (1) management; (2) production facilities; (3) supplier
relationships; and (4) customer base. See, e.g., Certain Warmwater
Shrimp from the People's Republic of China: Notice of Initiation and
Preliminary Results of Changed Circumstances Review, 72 FR 24273 (May
2, 2007). While no single factor or combination of factors will
necessarily provide a dispositive indication, the Department will
generally consider the new company to be the successor-in-interest to
the previous company if the resulting operation, with regard to the
subject merchandise, is not materially dissimilar to that of its
predecessor. See, e.g., Industrial Phosphoric Acid from Israel; Final
Results of Antidumping Duty Changed Circumstances Review, 59 FR 6944,
6945 (February 14, 1994); and Notice of Final Determination of Sales at
Less Than Fair Value and Affirmative Final Determination of Critical
Circumstances: Certain Orange Juice from Brazil, 71 FR 2183 (January
13, 2006) and accompanying Issues and Decision Memorandum, at Comment
3. Thus, if the evidence demonstrates that, with respect to the
production and sale of the subject merchandise, the new company
operates as the same business entity as the former company, the
Department will accord the new company the same antidumping duty
treatment as its predecessor.
In our analysis, we first reviewed the management structure of Vinh
Hoan Corp. Vinh Hoan reported that there has been no change in the
company's management or management structure after becoming Vinh Hoan
Corp. See Vinh Hoan's CCR Request at 4-5. Therefore, we find that the
management structure has remained unchanged.
Second, we looked at the operational structure of Vinh Hoan Corp.
Vinh Hoan explained that there have been no material changes to its
operations or the way it sells subject merchandise. Additionally, Vinh
Hoan provided a sales process flowchart, which demonstrates how
products are ordered and sold, and stated that these processes are
identical between Vinh Hoan and Vinh Hoan Corp. See Vinh Hoan's CCR
Request at 5-6 and Exhibit 3. We find that Vinh Hoan's operational
structure has not changed as a result of becoming Vinh Hoan Corp.
Third, we reviewed the supplier relationships of Vinh Hoan and Vinh
Hoan Corp. Vinh Hoan stated that it has not had any significant or
material changes to its supplier base (including its food-sized fish
input). See Vinh Hoan's CCR Request at 6 and Exhibit 4. We find that
Vinh Hoan's supplier relationships have not changed since becoming Vinh
Hoan Corp.
Fourth, we reviewed the customer base of both Vinh Hoan and Vinh
Hoan
[[Page 46606]]
Corp. Vinh Hoan explained that its, and subsequently, Vinh Hoan Corp.'s
major U.S. customer remained the same. See Vinh Hoan's CCR Request at 6
and Exhibit 5. Accordingly, we find that Vinh Hoan's customer base has
remained the same since becoming Vinh Hoan Corp.
In summary, Vinh Hoan reported that its conversion from Vinh Hoan
to Vinh Hoan Corp. did not meaningfully affect the supplier
relationships, customer base, management, marketing or sale of products
and services. Moreover, there have been no material changes to Vinh
Hoan's operations or the way it produces and sells subject merchandise
resulting in the conversion from Vinh Hoan to Vinh Hoan Corp.
Based on evidence provided by Vinh Hoan regarding its change from
an LLC to a joint stock company, and absent any other record evidence
that would contradict Vinh Hoan's statements, we preliminarily
determine, pursuant to section 351.221(c)(3)(ii) of the Department's
regulations, that Vinh Hoan Corp. is the succesor-in-interest to Vinh
Hoan. If the above preliminary results are affirmed in the Department's
final results, the cash deposit rate most recently calculated for Vinh
Hoan will apply to all entries of subject merchandise by Vinh Hoan
Corp. entered, or withdrawn from warehouse, for consumption on or after
the date of publication of the final results of this changed
circumstances review. See, e.g., Granular Polytetrafluoroethylene Resin
from Italy; Final Results of Changed Circumstances Review, 68 FR 25327
(May 12, 2003). This cash deposit rate, if imposed, shall remain in
effect until further notice.
Public Comment
Any interested party may request a hearing within 30 days of
publication of this notice in accordance with 19 CFR 351.310(c).
Interested parties may submit case briefs no later than 30 days after
the date of publication of this notice, in accordance with 19 CFR
351.309(c)(1)(ii). Rebuttal briefs, which must be limited to issues
raised in the case briefs, may be filed no later than 5 days after the
case briefs, in accordance with 19 CFR 351.309(d)(1). Any hearing, if
requested, will normally be held two days after rebuttal briefs are
due, in accordance with 19 CFR 351.310(d)(1).
The Department will issue its final results of review within 270
days after the date on which the changed circumstances review is
initiated, or within 45 days if all parties to the proceeding agree to
the outcome of the review, in accordance with 19 CFR 351.216(e), and
will publish these results in the Federal Register.
The current requirement for a cash deposit of estimated antidumping
duties on all subject merchandise will continue unless and until it is
modified pursuant to the final results of this changed circumstances
review.
This notice is published in accordance with sections 751(b)(1) and
777(i) of the Act and 19 CFR 351.216 of the Department's regulations.
Dated: August 10, 2007.
Joseph A. Spetrini,
Deputy Assistant Secretary for Import Administration.
[FR Doc. E7-16447 Filed 8-20-07; 8:45 am]
BILLING CODE 3510-DS-S