[Federal Register Volume 59, Number 209 (Monday, October 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26894]
[[Page Unknown]]
[Federal Register: October 31, 1994]
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DEPARTMENT OF COMMERCE
[A-570-838]
Initiation of Antidumping Duty Investigation: Honey From the
People's Republic of China
agency: Import Administration, International Trade Administration,
Department of Commerce.
effective date: October 31, 1994.
for further information contact: David J. Goldberger or Louis Apple,
Office of Antidumping Investigations, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW., Washington, DC, 20230; telephone
(202) 482-4136 or (202) 482-1769, respectively.
Initiation of Investigation
The Petition
On October 3, 1994, we received a petition filed in proper form by
members of the American Beekeeping Federation and the American Honey
Producers Association. In accordance with 19 CFR 353.12, petitioners
allege that honey from the People's Republic of China (PRC) is being,
or is likely to be, sold in the United States at less than fair value
within the meaning of section 731 of the Tariff Act of 1930, as amended
(the Act), and that these imports materially injure, or threaten
material injury to, a United States industry.
Petitioners have stated that they have standing to file the
petition because they are interested parties, as defined under section
771(9)(C) of the Act, and because the petition is filed on behalf of a
significant portion of the U.S. industry producing the product subject
to this investigation. If any interested party, as described under
paragraphs (C), (D), (E), or (F) of section 771(9) of the Act, wishes
to register support for, or opposition to this petition, it should file
a written notification with the Assistant Secretary for Import
Administration.
Scope of Investigation
The products covered by this investigation are natural honey,
artificial honey containing more than 50 percent natural honey by
weight, and preparations of natural honey containing more than 50
percent natural honey by weight. The subject products include all
grades and colors of honey whether in liquid, creamed, comb, cut comb,
or chunk form, and whether packaged for retail or in bulk form.
The subject merchandise is currently classifiable under subheadings
0409.00.00, 1702.90.50, 2106.90.60, 2106.90.61, 2106.90.65, and
2106.90.69 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
proceeding is dispositive.
United States Price and Foreign Market Value
United States Price
Petitioners based United States price (USP) on contract prices from
a U.S. importer of the subject merchandise from the PRC. In calculating
USP, petitioners deducted amounts for the following: U.S. duties, ocean
freight, marine insurance, U.S. harbor maintenance fee, U.S.
merchandise processing fee, and the Honey Board fee (a U.S. Department
of Agriculture assessment on honey or honey used in honey products in
the United States).
Foreign Market Value
A. Non-Market Economy Determination
Petitioners contend that the PRC is a non-market economy (NME)
country within the meaning of section 771(18)(A) of the Act. The
Department has determined in previous investigations that the PRC is an
NME, and the presumption of NME status continues for purposes of
initiation of this investigation. See e.g., Final Determination of
Sales at Less than Fair Value: Certain Paper Clips from the PRC, 59 FR
51168 (October 7, 1994) (Paper Clips).
In accordance with section 773(c) of the Act, foreign market value
in NME cases is based on NME producers' factors of production, valued
in a market economy country. Consistent with Department practice (see
Initiation of Antidumping Duty Investigation: Glycine from the PRC, 59
FR 38435, July 28, 1994), absent evidence that the PRC government
determines which of its beekeepers/processors shall produce for export
to the United States, we intend, for purposes of this investigation, to
base FMV only on those beekeepers/processors that produced honey sold
to the United States during the period of investigation (POI).
In the course of this investigation, parties will have the
opportunity to address this NME determination and provide relevant
information and argument related to the issues of the PRC's NME status
and granting of separates rates to individual exporters.
B. FMV Calculations
Petitioners calculated FMV on the basis of the valuation of factors
of production derived from information developed by a market researcher
in India about production processes in India, which petitioners claim
are similar to the PRC. Petitioners valued these factors, where
possible, based on publicly available published information from India
(see foreign market research report submitted by petitioners on October
14, 1994, at Exhibit 1). Petitioners argue that India is a country at a
comparable level of economic development to the PRC and India is a
significant producer of comparable merchandise, thus meeting the
requirements of section 773(c)(4) of the Act. For purposes of this
initiation, we have accepted India as an appropriate surrogate country
selection.
Where Indian values were not available, petitioners valued the
factors of production using the U.S. industry's costs, where
petitioners determined that this provided a reasonable basis upon which
to value such factors.
Petitioners provided FMV calculations based on data associated with
two species of bee known to produce honey in the PRC, i.e., the low-
yield A. cerana (eastern) honeybee and the high-yield A. mellifera
(western) honeybee. Petitioners have provided public information which
indicates that each species accounts for approximately one-half of the
commercial honey-producing colonies in the PRC (see October 14, 1994,
submission of petitioners, at p. 8). In accordance with 19 CFR
353.52(a)(2), petitioners' FMV for the two species consisted of the sum
of beekeeping costs, processing costs, profit, and packing, and the
factors were valued as follows:
For variable and fixed costs associated with beekeeping
operations, as well as processing costs, petitioners used Indian
factors of production based on their foreign market research.
For labor costs associated with beekeeping operations,
petitioners relied on Indian factors based on their foreign market
research. Petitioner valued labor costs on the basis of publicly
available Indian agricultural wage rates.
Petitioners added amounts for transportation and land-
lease costs associated with high-yield western honeybee beekeeping
operations, and valued these based on a U.S. producer's cost-per-pound.
For profit, petitioners used the profit margins for
beekeeping operations contained in their foreign market research, and
the statutory minimum of eight percent of the cost of production for
processing operations.
Petitioners added an amount for packing in steel drums
based on a U.S. producer's cost per drum.
Based on our analysis of the petition and petitioners' subsequent
amendments, we have made certain adjustments to petitioners' FMV
calculations as follows:
We disallowed additional transportation and land-leasing
expenses for western honeybee beekeeping because they are based on U.S.
costs, and are either inadequately supported or are based on incomplete
methodology (i.e., with regard to transportation, petitioners have
failed to take into account the increase in yield associated with
migratory beekeeping).
We adjusted beekeeping costs to offset the costs
associated with beekeeping services and products other than honey.
We valued packing costs associated with steel drums using
Indian import statistics rather than U.S. costs.
We have revised the FMV calculation for the eastern bee
using a higher yield, as derived from the supporting data for the
eastern bee presented in the petitioners' foreign market research.
Fair Value Comparisons
Based on a comparison of USP and FMV, petitioners' alleged dumping
margins, as revised by the Department, range from 30.95 to 49.24
percent.
Initiation of Investigation
We have examined the petition on honey and have found that the
petition meets the requirements of section 732(b) of the Act.
Therefore, we are initiating an antidumping duty investigation to
determine whether imports of honey from the PRC are being, or are
likely to be, sold in the United States at less than fair value.
International Trade Commission (ITC) Notification
Section 732(d) of the Act requires us to notify the ITC of this
action and we have done so.
Preliminary Determination by the ITC
The ITC will determine by November 17, 1994, whether there is a
reasonable indication that an industry in the United States is
materially injured, or is threatened with material injury, by reason of
imports of honey from the PRC. A negative ITC determination will result
in a termination of the investigation; otherwise, the investigation
will proceed according to statutory and regulatory time limits.
This notice is published pursuant to section 732(c)(2) of the Act
and 19 CFR 353.13(b).
Dated: October 24, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-26894 Filed 10-28-94; 8:45 am]
BILLING CODE 3510-DS-M
