[Federal Register: December 4, 2002 (Volume 67, Number 233)]
[Notices]
[Page 72139-72141]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04de02-29]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-831]
Fresh Garlic From the People's Republic of China: Final Results
of Antidumping Duty New Shipper Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of final results of antidumping duty new shipper review.
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SUMMARY: On July 31, 2002, the Department of Commerce published the
preliminary results of its new shipper reviews of fresh garlic from the
People's Republic of China. On October 28, 2002, we published the
rescission of the new shipper review of Shandong Heze International
Trade and Developing Company and notice of the postponement of our
final results of review for Jinan Yipin Corporation, Ltd. The period of
review is November 1, 2000, through October 31, 2001. We gave
interested parties an opportunity to comment on our preliminary
results. Based on the comments we received from the interested parties,
we have made changes in the margin calculation for Jinan Yipin
Corporation, Ltd., for the final results of review. The respondent's
final weighted-average dumping margin is listed below in the section
entitled ``Final Results of Review.''
EFFECTIVE DATE: December 4, 2002.
FOR FURTHER INFORMATION CONTACT: Jennifer Moats or Mark Ross, Import
Administration, International Trade Administration, U.S. Department of
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC
20230; telephone: (202) 482-5047 or (202) 482-4794, respectively.
The Applicable Statute and Regulations
Unless otherwise indicated, all citations to the statute are
references to the provisions effective January 1, 1995, the effective
date of the amendments made to the Tariff Act of 1930 by the Uruguay
Round Agreements Act. In addition, unless otherwise indicated, all
citations to the Department of Commerce's (the Department's)
regulations are to the provisions codified at 19 CFR part 351 (April
2001).
Background
On July 15 and 16, 2002, the Department conducted a U.S. sales
verification of Jinan Yipin Corporation Ltd.'s (Jinan Yipin's) U.S.
affiliate, American Yipin Produce Company (American Yipin). See
Memorandum to the file titled ``U.S. Market Verification of the
Response of Jinan Yipin Corporation, Ltd., to the Questionnaire of the
New Shipper Review (11/01/00-10/31/01) of the Antidumping Duty Order on
Fresh Garlic from the People's Republic of China,'' dated October 11,
2002.
We published in the Federal Register the preliminary results of the
new shipper review on July 31, 2002. See Fresh Garlic from the People's
Republic of China: Preliminary Results of Antidumping Duty New Shipper
Review and Intent to Rescind in Part, 67 FR 49669 (July 31, 2002)
(Preliminary Results).
On August 14, 2002, the Department toured fresh garlic production
operations in Coalinga, California. See Memorandum to the file titled
``Tour of U.S. Production Operations,'' dated September 10, 2002.
On August 20, 2002, the petitioners and the respondent submitted
additional surrogate-value data and on August 30, 2002, the petitioners
submitted updated surrogate-value data.
[[Page 72140]]
On September 19 and 20, 2002, the Department conducted a Factors of
Production (FOP) data verification of Jinan Yipin. See Memorandum to
the file titled ``Verification Report for Jinan Yipin Corporation,
Ltd.,'' dated October 16, 2002.
On October 24, 2002, the petitioners and Jinan Yipin submitted
their case briefs, and on October 29, 2002, the petitioners and Jinan
Yipin submitted rebuttal briefs. On November 6, 2002, we held a hearing
in this review.
The Department has conducted this review in accordance with section
751 of the Act.
Scope of the Order
The products covered by this antidumping duty order are all grades
of garlic, whole or separated into constituent cloves, whether or not
peeled, fresh, chilled, frozen, provisionally preserved, or packed in
water or other neutral substance, but not prepared or preserved by the
addition of other ingredients or heat processing. The differences
between grades are based on color, size, sheathing, and level of decay.
The scope of this order does not include the following: (a) Garlic
that has been mechanically harvested and that is primarily, but not
exclusively, destined for non-fresh use; or (b) garlic that has been
specially prepared and cultivated prior to planting and then harvested
and otherwise prepared for use as seed.
The subject merchandise is used principally as a food product and
for seasoning. The subject garlic is currently classifiable under
subheadings 0703.20.0010, 0703.20.0020, 0703.20.0090, 0710.80.7060,
0710.80.9750, 0711.90.6000, and 2005.90.9700 of the Harmonized Tariff
Schedule of the United States (HTSUS). Although the HTSUS subheadings
are provided for convenience and customs purposes, our written
description of the scope of this order is dispositive. In order to be
excluded from the antidumping duty order, garlic entered under the
HTSUS subheadings listed above that is (1) mechanically harvested and
primarily, but not exclusively, destined for non-fresh use or (2)
specially prepared and cultivated prior to planting and then harvested
and otherwise prepared for use as seed must be accompanied by
declarations to the Customs Service to that effect.
Separate Rates
In our Preliminary Results, we found that Jinan Yipin had met the
criteria for the application of a separate antidumping duty rate. We
have not received any information since the Preliminary Results which
would warrant reconsideration of our separate-rate determination with
respect to Jinan Yipin. Therefore, we continue to find that Jinan Yipin
should be assigned an individual dumping margin. For a complete
discussion of the Department's determination that the respondent is
entitled to a separate rate, see the Preliminary Results, 67 FR at
49669.
Analysis of Comments Received
All issues raised in the case briefs are addressed in the Issues
and Decision Memorandum (Decision Memo) from Susan Kuhbach, Acting
Deputy Assistant Secretary for Import Administration, to Faryar
Shirzad, Assistant Secretary for Import Administration, which is hereby
adopted by this notice. Parties can find a complete discussion of all
issues raised in the briefs and the corresponding recommendations in
this public memorandum, which is on file in the Central Records Unit,
room B-099 of the main Department building. In addition, a complete
version of the Decision Memo can be accessed directly on the Web at
http://www.ia.ita.doc.gov/frn. The paper copy and electronic version of
the Decision Memo are identical in content.
Changes Since the Preliminary Results
Based on the use of additional publicly available information and
the comments we received from the interested parties, we have made
changes in our calculation of the weighted-average dumping margin for
Jinan Yipin.
For the final results, we calculated average surrogate percentages
for factory overhead, selling, general, and administrative expenses,
and profit using the 2000-2001 financial reports of Agro Dutch Foods
Ltd., Flex Foods Ltd., and Himalya International Ltd. See Decision Memo
at Comment 5. We also deducted a line item from the financial
statements to avoid double-counting. We incorporated the pre-
verification corrections as presented at the start of both the U.S.
sales and factor-of-production verifications. We deducted a portion of
building depreciation from the factory overhead equal to the portion of
the lease agreement pertinent to bartered garlic sprouts. We valued
garlic seed with information for garlic from two varieties of Indian
garlic (i.e., Yamuna Safed and Agrifound Parvati). We valued
electricity with information for agricultural electricity rates
published by the Teri Energy Data Directory and Yearbook 1999/2000. We
removed packing materials and packing labor from the calculation of
direct materials. We treated water as a variable overhead expense
rather than a direct material.
Verification
As provided in section 782(i) of the Act, we verified the
information submitted by the respondent for use in our final results.
We used standard verification procedures including examination of
relevant accounting and production records, and original source
documents provided by the respondent.
Final Results of Review
The weighted-average dumping margin for subject merchandise
manufactured and exported by Jinan Yipin for the period November 1,
2000, through October 31, 2001 is 0.00 percent.
Assessment Rates
The Department will determine, and the Customs Service shall
assess, antidumping duties on all appropriate entries. In accordance
with 19 CFR 351.106(c)(2), we will instruct the Customs Service to
liquidate without regard to antidumping duties all entries of subject
merchandise during the POR for which the import-specific assessment
rate is zero.
Cash-Deposit Requirements
Bonding is no longer permitted to fulfill security requirements for
shipments from Jinan Yipin of fresh garlic from the PRC entered, or
withdrawn from warehouse, for consumption on or after the publication
date of these final results of new shipper review. The following cash-
deposit requirements will be effective upon publication of the final
results of this new shipper review for all shipments of subject
merchandise 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 manufactured (i.e., grown) and
exported by Jinan Yipin, no cash deposit is required; (2) for subject
merchandise exported by Jinan Yipin but not manufactured (i.e., grown)
by Jinan Yipin, the cash-deposit rate will be the PRC countrywide rate;
(3) for all other PRC exporters, which have not been found to be
entitled to a separate rate, the cash-deposit rate will be the PRC
countrywide rate, which is 376.67 percent; (4) for all non-PRC
exporters of subject merchandise, the cash-deposit rate will be the
rate applicable to the PRC supplier of that exporter. These deposit
requirements shall remain in effect until publication of the final
[[Page 72141]]
results of the next administrative review.
This notice serves as the only reminder to parties subject to the
administrative protective order (APO) of their responsibility
concerning the return or destruction of proprietary information
disclosed under APO in accordance with 19 CFR 351.305(a). 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.
We are issuing and publishing these results and notice in
accordance with sections 751(a)(1), 751(a)(2)(B), and 777(i) of the Act
and 19 CFR 351.213 and 351.214.
Dated: November 26, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 02-30771 Filed 12-3-02; 8:45 am]