[Federal Register Volume 63, Number 6 (Friday, January 9, 1998)]
[Notices]
[Pages 1428-1430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-487]
[[Page 1428]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-601]
Certain Fresh Cut Flowers From Mexico; Notice of Preliminary
Results of Antidumping Duty Administrative Review, and Intent To Revoke
the Order in Part
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
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SUMMARY: The Department of Commerce (the Department) is conducting an
administrative review of the antidumping duty order on certain fresh
cut flowers from Mexico in response to a request from Rancho del
Pacifico (Pacifico), respondent. Additionally, the Department
preliminarily intends to revoke the order in part with respect to
Pacifico. This review covers one producer/exporter and entries of the
subject merchandise into the United States during the period April 1,
1996 through March 31, 1997.
We preliminarily determine that sales have not been made below
normal value (NV). If these preliminary results are adopted in our
final results, we will instruct U.S. Customs to liquidate entries
without regard to antidumping duties.
Interested parties are invited to comment on these preliminary
results. Parties who submit argument are requested to submit with each
argument (1) a statement of the issue and (2) a brief summary of the
argument.
EFFECTIVE DATE: January 9, 1998.
FOR FURTHER INFORMATION CONTACT: Tamara Underwood or Maureen Flannery,
Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue, N.W.,
Washington D.C. 20230; telephone: (202) 482-4733.
Applicable Statute: 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
(the Act) by the Uruguay Round Agreements Act. In addition, unless
otherwise indicated, all citations to the Department's regulations are
to the regulations as codified at 19 CFR Part 353 (1996).
SUPPLEMENTARY INFORMATION:
Background
On April 23, 1987, the Department published in the Federal Register
(52 FR 13491) the antidumping duty order on certain fresh cut flowers
from Mexico. On April 28, 1997, in accordance with 19 CFR 353.22(a),
Pacifico requested that the Department conduct an administrative
review. In accordance with 19 CFR 353.25(b) (1) and (2), Pacifico also
requested a partial revocation of the antidumping duty order as it
pertains to it upon completion of this review. We published a notice of
initiation of review on May 21, 1997 (62 FR 27720). The Department is
conducting this administrative review in accordance with section 751 of
the Act.
Scope of the Review
The products covered by this review are certain fresh cut flowers,
defined as standard carnations, standard chrysanthemums, and pompon
chrysanthemums (pompons). During the period of review (POR), such
merchandise was classifiable under the Harmonized Tariff Schedule of
the United States (HTSUS) items 0603.10.7010 (pompons), 0603.10.7020
(standard chrysanthemums), and 0603.10.7030 (standard carnations). The
HTSUS item numbers are provided for convenience and Customs purposes
only. The written description remains dispositive as to the scope of
the order.
This review covers sales of subject merchandise entered into the
United States during the period April 1, 1996 through March 31, 1997.
Verification
As provided in section 776(b) of the Act, we conducted a
verification of the questionnaire responses submitted by Pacifico. We
used standard verification procedures, including on-site inspection of
the manufacturer's facilities, the examination of relevant accounting,
sales, and other financial records, and the selection of original
documentation containing relevant information. Our verification results
are outlined in the public version of the verification report.
Intent To Revoke
On April 28, 1997, Pacifico submitted a request, in accordance with
19 CFR 353.25(b), that the Department revoke the order covering certain
fresh cut flowers from Mexico with respect to its sales of this
merchandise.
In accordance with 19 CFR 353.25(a)(2)(iii), this request was
accompanied by a certification from Pacifico that it had not sold the
subject merchandise at less than NV for a three-year period, including
this review period, and would not do so in the future. Pacifico also
agreed to its immediate reinstatement in the relevant antidumping
order, as long as any firm is subject to this order, if the Department
concludes under 19 CFR 353.22(f) that, subsequent to revocation, it
sold the subject merchandise at less than NV.
In the two prior reviews of this order, we determined that Pacifico
sold fresh cut flowers from Mexico at not less than NV. The Department
conducted a verification of Pacifico's response for this period of
review. We preliminarily determine that Pacifico sold fresh cut flowers
at not less than NV during this review period. Based on Pacifico's
three consecutive years of zero or de minimis margins and the absence
of evidence to the contrary, we preliminarily determine that it is not
likely that Pacifico will in the future sell subject merchandise at
less than NV. Therefore, if these preliminary findings are affirmed in
our final results, we intend to revoke the order on fresh cut flowers
from Mexico with respect to Pacifico.
United States Price
In calculating United States Price (USP), we used constructed
export price (CEP), in accordance with section 772 (b), (c), and (d) of
the Act, because Pacifico's sales to the first unaffiliated purchaser
occurred after importation into the United States. We based CEP on the
packed F.O.B. prices to the first unaffiliated purchaser after
importation into the United States. As in the original less-than-fair-
value (LTFV) investigation and in all prior administrative reviews, all
prices to the United States were weight-averaged on a monthly basis to
account for the perishability of the product. In accordance with the
methodology established in the 1992-1993 review, we also calculated USP
by flower type, without regard to specific grades. (See Final Results
of Antidumping Duty Administrative Review; Certain Fresh Cut Flowers
from Mexico, 56 FR 29621 (June 28, 1991).)
Where appropriate, we made deductions from CEP for foreign and U.S.
inland freight, U.S. and Mexican brokerage and handling charges, and
for credit expenses incurred on sales in the United States. No other
adjustments were claimed or allowed.
Normal Value
In calculating NV, we used home market prices to unaffiliated
purchasers, as defined in section 773 of the Act. In order to determine
whether there was a sufficient volume of sales in the home market to
serve as a viable basis for calculating NV, we compared Pacifico's
volume of home market sales of the subject merchandise to the volume of
U.S. sales of the subject merchandise, in accordance with section
773(a)(1)(C) of
[[Page 1429]]
the Act. Because Pacifico's volume of home market sales of the subject
merchandise was greater than five percent of its volume of U.S. sales
of the subject merchandise, we determined that the home market provides
a viable basis for calculating NV for Pacifico.
Home market price was based on F.O.B. farm gate unit price of
subject merchandise sold to unaffiliated purchasers in the home market.
No adjustments were claimed or allowed.
Level of Trade
In accordance with section 773(a)(1)(B) of the Act, to the extent
practicable, we determine NV based on sales in the comparison market at
the same level of trade (LOT) as the export price (EP) or CEP
transaction. The NV LOT is that of the starting-price sales in the
comparison market or, when NV is based on constructed value, that of
the sales from which we derive selling, general and administrative
expenses and profit. For EP, the U.S. LOT is also the level of the
starting-price sale, which is usually from exporter to importer. For
CEP, it is the level of the constructed sale from the exporter to the
importer.
To determine whether NV sales are at a different LOT than EP or
CEP, we examine stages in the marketing process and selling functions
along the chain of distribution between the producer and the
unaffiliated customer. If the comparison-market sales are at a
different LOT, and the difference affects price comparability, as
manifested in a pattern of consistent price differences between the
sales on which NV is based and comparison-market sales at the LOT of
the export transaction, we make an LOT adjustment under section
773(a)(7)(A) of the Act. Finally, for CEP sales, if the NV level is
more remote from the factory than the CEP level and there is no basis
for determining whether the difference in the levels between NV and CEP
affects price comparability, we adjust NV under section 773(a)(7)(B) of
the Act (the CEP offset provision). See Notice of Final Determination
of Sales at Less Than Fair Value: Certain Cut-to-Length Carbon Steel
Plate From South Africa, 62 FR 61731, 61732 (November 19, 1997).
Pacifico did not claim a LOT adjustment; however, we requested
information concerning Pacifico's distribution system, including
classes of customers, selling functions, and selling expenses to
determine whether such an adjustment was necessary. Pacifico reported
that all sales during the POR, in both the comparison market, the home
market in this instant case, and the United States, were to
wholesalers. We examined information provided by Pacifico concerning
these sales and determined that there was no difference in either
selling functions or selling expenses between sales in the home market
and sales in the United States. Therefore, we preliminarily determine
that sales in the home market and sales in the United States are at the
same LOT and that no adjustment is warranted.
Preliminary Results of Review
We preliminarily determine that the following weighted-average
dumping margin exists:
------------------------------------------------------------------------
Margin
Manufacturer/exporter Time period (percent)
------------------------------------------------------------------------
Rancho del Pacifico................ 04/01/96-03/31/97 0.00
------------------------------------------------------------------------
Parties to the proceeding may request disclosure within 5 days of
the date of publication of this notice in accordance with 19 CFR
353.28. Any interested party may request a hearing within 10 days of
publication in accordance with 19 CFR 353.38(b). Any hearing, if
requested, will be held 44 days after the publication of this notice,
or the first workday thereafter. Interested parties may submit case
briefs within 30 days of the date of publication of this notice in
accordance with 19 CFR 353.38(c). Rebuttal briefs, which must be
limited to issues raised in the case briefs, may be filed not later
than 37 days after the date of publication. The Department will publish
a notice of final results of this administrative review, which will
include the results of its analysis of issues raised in any such
comments.
The Department shall determine, and the U.S. Customs Service shall
assess, antidumping duties on all appropriate entries. Upon completion
of this review, the Department will issue appraisement instructions
directly to the U.S. Customs Service.
Furthermore, the following deposit rates will be effective upon
publication of the final results of this administrative review for all
shipments of fresh cut flowers from Mexico 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 previously
reviewed or investigated companies not listed above, the cash deposit
rate will continue to be the company-specific rate published for the
most recent period; (2) if the exporter is not a firm covered in this
review, a prior review, or the original less-than-fair-value
investigation, but the manufacturer is, the cash deposit rate will be
the rate established for the most recent period for the manufacturer of
the merchandise; and (3) for all other producers and/or exporters of
this merchandise, the cash deposit rate shall be the rate established
in the investigation of sales at less than fair value, which is 18.20
percent. See 52 FR 6361 (March 3, 1987).
If our intent to revoke is finalized, the revocation will apply to
all entries of the subject merchandise from Pacifico entered, or
withdrawn from warehouse, for consumption on or after April 1, 1997.
The Department will then order the suspension of liquidation ended for
all such entries and will instruct the Customs Service to release any
cash deposit or bonds. The Department will further instruct Customs to
refund with interest any cash deposits on post-March 31, 1997 entries.
If we do not revoke, the cash deposit rate for Pacifico will be the
rate established in the final results of this review (except that no
deposit will be required if the margin is zero or de minimis, i.e.,
less than 0.5 percent).
These deposit rates, when imposed, shall remain in effect until
publication of the final results of the next administrative review.
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 353.25(b) to file certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
This administrative review and notice are in accordance with
section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) and 19 CFR 353.22.
[[Page 1430]]
Dated: December 29, 1997.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 98-487 Filed 1-8-98; 8:45 am]
BILLING CODE 3510-DS-P
