96-31590. Fresh and Chilled Atlantic Salmon From Norway, Final Results of Antidumping Duty Administrative Review  

  • [Federal Register Volume 61, Number 241 (Friday, December 13, 1996)]
    [Notices]
    [Pages 65522-65527]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-31590]
    
    
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    DEPARTMENT OF COMMERCE
    International Trade Administration
    [A-403-801]
    
    
    Fresh and Chilled Atlantic Salmon From Norway, Final Results of 
    Antidumping Duty Administrative Review
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    ACTION: Notice of Final Results of Antidumping Duty Administrative 
    Review.
    
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    SUMMARY: On September 26, 1995, the Department of Commerce (the 
    Department) published the preliminary results of its administrative 
    review of the antidumping duty order on fresh and chilled Atlantic 
    salmon from Norway. The review covers 24 exporters, and the period 
    April 1, 1993, through March 31, 1994. Based on our analysis of the 
    comments received, we determine the dumping margins for two of the 
    reviewed exporters, Skaarfish A/S (Skaarfish) and Norwegian Salmon A/S 
    (Norwegian Salmon), have changed.
    
    EFFECTIVE DATE: December 13, 1996.
    
    FOR FURTHER INFORMATION CONTACT: Todd Peterson or Thomas Futtner, 
    Office of Antidumping Compliance, Import Administration, International 
    Trade Administration, U.S. Department of Commerce, 14th Street and 
    Constitution Avenue, N.W., Washington, D.C. 20230; telephone (202) 482-
    4106, or 482-3814, respectively.
    
    SUPPLEMENTARY INFORMATION:
    
    Applicable Statute and Regulations
    
        The Department is conducting this review in accordance with section 
    751(a) of the Tariff Act of 1930, as amended (the Act). Unless 
    otherwise indicated, all citations to the statute and to the 
    Department's regulations are in reference to the provisions as they 
    existed on December 31, 1994.
    
    Background
    
        On September 26, 1995, the Department published the preliminary 
    results (60 FR 49579) of its administrative review of the antidumping 
    duty order on fresh and chilled Atlantic salmon from Norway (April 12, 
    1991, 56 FR 14920). The Department has now completed this 
    administrative review in accordance with section 751 of the Act.
    
    Scope of the Review
    
        The merchandise covered by this review is fresh and chilled 
    Atlantic salmon (salmon). It encompasses the species of Atlantic salmon 
    (Salmo salar) marketed as specified herein; the subject merchandise 
    excludes all other species of salmon: Danube salmon; Chinook (also 
    called ``king'' or ``quinnat''); Coho (``silver''); Sockeye 
    (``redfish'' or ``blueback''); Humpback (``pink''); and Chum (``dog''). 
    Atlantic salmon is whole or nearly whole fish, typically (but not 
    necessarily) marketed gutted, bled, and cleaned, with the head on. The 
    subject merchandise is typically packed in fresh water ice (chilled). 
    Excluded from the subject merchandise are fillets, steaks, and other 
    cuts of Atlantic salmon. Also excluded are frozen, canned, smoked or 
    otherwise processed Atlantic salmon. Fresh and chilled Atlantic salmon 
    is currently provided for under Harmonized Tariff Schedule (HTS) 
    subheading 0302.12.00.02.09. The HTS item number is provided for 
    convenience and Customs purposes. The written description remains 
    dispositive.
    
    Cost of Production and Foreign Market Value
    
        We calculated the cost of production (COP) of salmon sold by each 
    exporter based on the sum of the following: (1) The simple average of 
    farmers' costs of cultivation (COC) (which included the cost of 
    materials, fabrication, wellboat services, general expenses of the 
    farmer, and any applicable fees); (2) processing expenses; and (3) each 
    exporter's general expenses. The total COP was calculated on a 
    Norwegian kroner per kilogram (NOK/kg) basis.
        Based on the comments presented by both respondents and petitioner, 
    and after further consideration and review, we have revised certain 
    costs as detailed in the comments below.
        We calculated foreign market value (FMV) based on c.i.f., duty paid 
    prices to unrelated third country purchasers. We deducted, where 
    appropriate, third country inland freight, air freight, inland/marine 
    insurance, Norwegian export taxes, brokerage and handling, inland 
    freight in Norway, and third country import duties. We made 
    circumstance of sale adjustments, where appropriate, for differences in 
    credit, commissions, and warranty expenses.
    
    [[Page 65523]]
    
    United States Price
    
        We calculated the United States Price (USP) based on the price from 
    the Norwegian exporter to unaffiliated parties where these sales were 
    made prior to importation into the United States, in accordance with 
    section 772(a) of the Act.
        We calculated the USP based on packed, ex-factory prices to 
    unaffiliated purchasers in the United States. We made deductions, where 
    appropriate, for foreign inland freight, brokerage and handling, 
    Norwegian export taxes, U.S. duties, and air freight in accordance with 
    section 772(d)(2) of the Act. No other adjustments were claimed or 
    allowed.
    
    Analysis of Comments Received
    
        We invited interested parties to comment on the preliminary 
    results. We received timely comments from two of the respondents, 
    Skaarfish Group and Norwegian Salmon, and the petitioner, the Coalition 
    for Fair Atlantic Salmon Trade (FAST).
    
    General Comments
    
        Comment 1: Respondents contend that in establishing each 
    respondent's cost of production the Department should use the 
    acquisition prices from the unrelated fish farms rather than the 
    farmer's cost of cultivation. By using the farmer's cost of 
    cultivation, the respondents contend that the Department is departing 
    from its practice of relying on acquisition prices in establishing COP 
    when the supplier is not related to the respondent. Respondents claim 
    that the Department erred in determining that fish farmers are the 
    producers of the subject merchandise. According to respondents, the 
    fish farmers produce live salmon, which respondents consider to be an 
    input of the subject merchandise and outside the scope of the dumping 
    order. Respondents claim that the live salmon input is transformed into 
    merchandise covered by the scope of the order only through processing 
    by the respondents. Respondents cite Consolidated International 
    Automotive, Inc. v. United States, 809 F. Supp. 125, 128 n. 4 (CIT 
    1992) to demonstrate that, unless the sale of the input is by a related 
    party, the courts uphold the use of acquisition prices in determining 
    COP for a respondent.
        Petitioner argues that the Department properly used the farms' 
    costs of cultivation to establish the subject merchandise's cost of 
    production. Petitioner points out that the Department rejected these 
    same arguments in past administrative reviews and should continue to 
    reject the argument that salmon is an input into the subject 
    merchandise as there are no new facts or legal authority to justify a 
    change in approach.
        Department's Position: We consider the live salmon, produced by the 
    fish farmers and sold to exporters such as Skaarfish and Norwegian 
    Salmon, to be the same merchandise as is covered by the antidumping 
    duty order, but at an earlier stage of production. Accordingly, live 
    salmon is not an input but rather identical merchandise before it has 
    been made ready for sale and shipment. Consequently, respondents' 
    reliance on the Consolidated International Automotive decision is 
    misplaced.
        As was found in the less-than-fair-value (LTFV) investigation and 
    first administrative review, Skaarfish continues to process a portion 
    of its fish farm-sourced live salmon by gutting, cleaning, and 
    packaging it. Norwegian Salmon, and in some cases Skaarfish, purchase 
    and resell salmon that is already gutted and cleaned by the fish 
    farmers. There is no transformation of merchandise outside the scope of 
    the order to merchandise within the scope of the order as suggested by 
    respondents. Instead, respondents are acting primarily as a reseller by 
    merely preparing the merchandise for trans-Atlantic shipment. To 
    determine the cost of producing salmon, Commerce properly reviewed 
    respondents' costs as well as the fish farms' cost of cultivation.
        Comment 2: The respondents argue that if the Department continues 
    to use its cost of production methodology, the Department should 
    develop an alternate methodology for selecting salmon farms. They 
    contend that the current methodology is designed to determine the 
    hypothetical costs of growing live salmon in Norway rather than to 
    determine the salmon costs of a specific respondent. Furthermore, they 
    allege that the methodology gives no consideration to the burdens 
    placed on the respondents resulting from the investigation of unrelated 
    live salmon suppliers. They further allege that inconsistent selection 
    practices occurred when the Department chose not to sample the farms of 
    one respondent, but chose to sample the farms of the other respondent. 
    Respondents argue that the Department should adopt a standard selection 
    methodology that does not place a financial burden on the respondents.
        Petitioner argues that the Department's sampling methodology is 
    correct. Petitioner points out that the Department's methodology 
    ensured that farms were proportionately represented based on the 
    quantity of salmon supplied to each respondent. Petitioner argues that 
    the statute supports the Department's decision to sample one respondent 
    and not another.
        Department's Position: We disagree with respondents. Respondents 
    are incorrect to contend that the current methodology is designed to 
    determine the hypothetical costs of growing live salmon in Norway 
    rather than to determine the salmon costs of a specific respondent. By 
    choosing to sample only those farms that supplied each exporter, the 
    Department is ensuring that the calculated costs of growing live salmon 
    are representative of that specific exporter.
        The Department is aware that all administrative reviews place a 
    degree of burden on respondent firms. The Department intends to keep 
    those burdens manageable for both the respondents and itself. Under 
    section 777A of the Act, the Department has the discretion to sample 
    respondents. In deciding whether to sample, the Department determined 
    that it was both administratively necessary and methodologically 
    appropriate to sample among the 50 salmon farmers that supplied 
    Skaarfish A/S, but unnecessary to sample the nine salmon farmers that 
    supplied Norwegian Salmon.
        Comment 3: Respondents argue that the Department's use of best 
    information available (BIA) should be revised to realistically reflect 
    the unique circumstances present in the review. Respondents contend 
    that they have no leverage over unrelated suppliers who have no 
    interest in the antidumping administrative review. Thus, the unrelated 
    suppliers have no incentive to supply confidential cost data. 
    Respondents propose that non-responding farms should be disregarded 
    from the sample. Alternatively, they argue that as BIA, the Department 
    should use the average COC of the responding farms rather than the COC 
    of the highest farm. Respondents point to Allied-Signal Aerospace Co. 
    v. United States, 28 F.3d 1188 (Fed. Cir. 1994) to demonstrate that the 
    Department has the authority to adopt different approaches when 
    applying BIA.
        Petitioner contends that the Department correctly applied BIA to 
    the unique circumstances of this review. Petitioner contends that the 
    salmon farmers do have a significant interest at stake in participating 
    in antidumping reviews. The salmon farmers are aware of the effect that 
    failing to respond has on the exporter's ability to sell their salmon 
    to the United States.
        Department's Position: For Norwegian Salmon, we applied BIA to six 
    of the
    
    [[Page 65524]]
    
    nine farms, because those six did not submit questionnaire responses. 
    For Skaarfish, we applied BIA to four of the 13 farm selections, 
    because those four did not submit questionnaire responses. We chose as 
    BIA the highest calculated COC of the responding farms and applied that 
    COC to each of the nonresponding farms.
        Under section 776(c) of the Act, the Department has the authority 
    to use BIA ``whenever a party or any other person refuses or is unable 
    to produce information requested.'' Thus, the Department may resort to 
    BIA not only when a party ``refuses,'' but also when a party is 
    ``unable'' to provide the requested information, for whatever reason. 
    The Allied Signal decision to which respondents refer affirmed the 
    Department's application of BIA to a non-recalcitrant party which was 
    unable to provide requested data.
        The elimination of non-responding farms from the sample, as 
    respondents advocate, would reward non-responding farms and could 
    encourage non-compliance in future reviews. Moreover, it would impair 
    the integrity of the sample because it would detract from the 
    randomness of the results. Therefore, we continue to apply the same BIA 
    rules applied in the preliminary results.
        Comment 4: Respondents argue that the Department should apply the 
    50-90-10 rule used with highly perishable products rather than the 10-
    90-10 rule in determining when to disregard below-cost sales from the 
    calculation of FMV. Respondents contend that salmon is a highly 
    perishable product and that the salmon industry cannot respond quickly 
    to changing market conditions and must sell the salmon when the salmon 
    reach maturity. Respondents cite Certain Fresh Winter Vegetables from 
    Mexico, 45 FR 20512 (March 28, 1980) (Vegetables); Fall Harvested Round 
    White Potatoes from Canada, 48 FR 51669 (November 10, 1983) and Fresh 
    Cut Flowers from Mexico, 55 FR 12696 (April 5, 1990) to support their 
    position.
        Petitioner contends that the Department correctly applied the 10/
    90/10 test because the subject merchandise is not a highly perishable 
    product as defined by the Department in Vegetables. Petitioner points 
    out that, unlike Vegetables, the respondents in this case can control 
    the time of sale of the subject merchandise. In addition, the subject 
    merchandise is alive and not deteriorating at the time of the sales 
    transaction.
        Department's Position: We agree with petitioner. As we have 
    explained in prior reviews of this order, under the 10/90/10 test, we 
    do not disregard sales if less than 10 percent are below cost and made 
    over an extended period of time; we disregard sales only if between 10 
    and 90 percent are below cost, and we disregard all sales if more than 
    90 percent are below cost. In past cases, the Department has used the 
    50/90/10 test in cases involving highly perishable agricultural 
    products. Under a 50/90/10 test, the Department would not disregard any 
    below-cost sales unless more than 50 percent of sales were below cost.
        We believe that fresh and chilled Atlantic salmon is not a highly 
    perishable product. As we found in the original LTFV investigation and 
    first administrative review, farmers have the ability to control the 
    time of sale of their output without materially affecting the quality 
    of the merchandise. It is not unusual for farmers to delay sales for an 
    extended period of time until they receive a favorable price offer. 
    Moreover, exporters have the ability to coordinate future salmon 
    purchases with farmers to coincide with demand and processing 
    capabilities. Accordingly, application of the 50-90-10 rule is not 
    relevant in this case.
        Comment 5: Norwegian Salmon and petitioner maintain that the 
    Department should correct a computer error in the margin calculations 
    for Norwegian Salmon where an expense, of a proprietary nature, was 
    incorrectly deducted twice from foreign market value.
        Department's Position: We agree and have corrected this clerical 
    error by eliminating the double deduction.
        Comment 6: Respondent argues that the Department used the incorrect 
    tax methodology to adjust for Norwegian export tax in the preliminary 
    results for Norwegian Salmon.
        Petitioner claims that the Department simply did not subtract 
    Norwegian Salmon's export tax from its reported U.S. sales prices.
        Department's Position: We agree with petitioner and corrected this 
    error. Section 772 of the Act and section 353.41 of the Department's 
    regulations state that the export tax should be subtracted from U.S. 
    price. See 19 U.S.C. 1677a(d)(2)(B) and 19 C.F.R. 353.41(d)(2)(ii).
        Comment 7: Petitioner contends that the Department incorrectly 
    stated in its September 26, 1995, Analysis Memorandum that there were 
    no third country sales below cost and, therefore, there were no 
    disregarded sales. However, according to the computer program, sales 
    were disregarded because Norwegian Salmon made third country sales 
    below the cost of production.
        Norwegian Salmon contends that the Department incorrectly compared 
    Norwegian Salmon's third country sales to the cost of production on a 
    month-by-month basis rather than on a POR-model basis. Respondent 
    claims that the Department's computer program treats each month as a 
    model rather than comparing the one model of salmon to the COP for the 
    entire POR.
        Department's position: We agree with both petitioner and 
    respondent. The Department incorrectly stated in the Analysis 
    Memorandum that there were no sales below the cost of production and, 
    therefore, there were no disregarded sales. Rather, the cost test 
    results indicated that third country sales made below cost should be 
    disregarded in its calculations for the preliminary results. For the 
    final results, however, we discovered that the calculation of above- 
    and below-cost data, used in the preliminary results, was inaccurate 
    due to an error in the computer program. This error has been corrected 
    for these final results.
        Also, the Department did incorrectly treat each month of the POR as 
    a model, as asserted by respondent. The Department has corrected this 
    error. Sales of salmon are now compared to the cost of production on a 
    POR basis.
    
    Norwegian Salmon Farm Specific Issues
    
    Farm B
        Comment 8: Petitioner contends that the Department's calculations 
    understated the feed costs for Farm B because they failed to 
    incorporate revised information contained in the verification report.
        Norwegian Salmon argues that the Department correctly stated and 
    allocated feed costs for Farm B. Respondent contends that the lower 
    feed costs used by the Department in its preliminary results are 
    correct because we also revised the total harvest weight of the 1992 
    generation salmon downward.
        Department's Position: We agree with petitioner. In its preliminary 
    results, the Department failed to use the revised, higher total feed 
    costs that were based on information gathered at verification. This 
    error has been corrected. The respondent is incorrect that the revised 
    harvest quantities affect the total feed costs Farm B incurred. See 
    Farm B, Verification of Cost of Production, December 12, 1994.
        Comment 9: Petitioner contends that there were no costs reported 
    for the 1992 generation salmon sold in calendar year 1994. As a result, 
    the net production quantity for Farm B was overstated due to the fact 
    that there
    
    [[Page 65525]]
    
    were 1992 generation salmon sales in 1994, but no associated 1994 costs 
    reported for the 1992 generation salmon. Petitioner advocates using 
    only the total quantity of 1992 generation salmon that was produced in 
    1992 and 1993 in the COC calculation.
        Norwegian Salmon contends that the salmon sold in 1994 were 
    produced in 1992 and 1993. According to Norwegian Salmon, the COC 
    figures already include costs for the salmon that were sold in 1994, 
    and therefore no adjustment is needed.
        Department's Position: We agree in part with both petitioner and 
    respondent. Petitioner is correct that there are no costs reported for 
    those 1992 generation salmon sold in 1994. However, as respondent 
    pointed out, the costs associated with the 1992 generation were 
    reported for 1992 and 1993. The net production quantities do not need 
    to be modified since the quantities produced in 1992 and 1993 and their 
    respective costs are not in question. Therefore to make the production 
    costs and production quantities correspond to the same period of time, 
    we corrected the total harvest quantity by eliminating the 1992 
    generation salmon harvested in 1994.
        Comment 10: Petitioner contends that an extraordinary expense item 
    found in Farm B's 1993 general ledger should be included in Farm B's 
    1993 cost calculations just as a similar 1992 extraordinary expense 
    item found in its 1992 general ledger was included in Farm B's 1992 
    cost calculations.
        Norwegian Salmon argues that the Department correctly excluded the 
    extraordinary expense item in the calculation of Farm B's COC. 
    Respondent argues that Farm B, participating in its first 
    administrative review, incurred an extraordinary expense when it could 
    not collect on accounts receivable as a result of the Norske 
    Fiskeoppdretternes Salgslag (FOS) bankruptcy in 1991. Thus, respondent 
    claims that this extraordinary expense, although appearing in 1993's 
    general ledger, does not affect the COC of the 1992 generation salmon 
    under review.
        Department's Position: We agree in part with both the petitioner 
    and respondent. The petitioner is correct that since the extraordinary 
    expense appears in Farm B's general ledger as an expense, it should 
    increase Farm B's COC. While respondent classifies this expense as an 
    ``extraordinary''expense, it clearly does not meet the generally 
    accepted definition of an extraordinary expense. According to generally 
    accepted accounting practices, write-down and write-off of receivables 
    and inventory are not extraordinary because they relate to normal 
    business operational activities. Following the practice set in Fresh 
    and Chilled Atlantic Salmon From Norway: Final Results of Antidumping 
    Administrative Review, (58 FR 37912), comment 18, these expenses are 
    not considered extraordinary and are included as a component of the 
    cost of cultivation. This expense, however, is clearly not related to 
    the 1992 generation salmon under review since the FOS bankruptcy 
    occurred before the 1992 generation salmon were put in the water. If 
    Farm B was involved in a previous review where this bad debt expense 
    was associated with the generation of salmon under review, the expense 
    would be included in the COC of that POR. Therefore, we excluded this 
    expense from the COC for the products currently under review.
        Comment 11: Petitioner contends that several overhead cost items 
    reported by Farm B should be added to, and not excluded from, costs 
    associated with the 1992 generation under review.
        Norwegian Salmon contends that the Department correctly allowed 
    certain overhead cost items to be deducted from Farm B's cost of 
    cultivation.
        Department's Position: We agree with the respondent. Although the 
    Department did not verify these specific journal entries, we verified 
    the accuracy and integrity of Farm B's audited financial statements, of 
    which these specific entries are a part. Thus, in accepting the whole, 
    we accept the individual entries as presented by the respondent, unless 
    otherwise noted.
    Farm C
        Comment 12: Petitioner contends that the indemnity reported by Farm 
    C was not correctly reflected in the COC calculations. Petitioner 
    claims that the indemnity should be allocated to both 1991 and 1992 
    generation salmon rather than to just 1992 generation salmon. 
    Furthermore, if the indemnity is accepted by the Department, the 
    associated loss must also be accounted for in the cost calculations.
        Norwegian Salmon argues that the Department correctly deducted and 
    allocated Farm C's indemnity. Respondent states that the indemnity was 
    not allocated to the 1991 generation because 1991 generation salmon 
    were at another location and were not affected by the underwater 
    detonations which caused the salmon loss. Respondent states that all 
    costs associated with the loss of salmon were fully accounted for in 
    Farm C's COC.
        Department's Position: We note that Farm C received an indemnity to 
    compensate it for damage caused to its salmon farm by underwater 
    detonations. We agree that the indemnity was correctly allocated only 
    to the 1992 generation as the 1991 generation was kept at a different 
    location and not affected by these underwater detonations. However, we 
    failed to include Farm C's salmon loss, as it appears in its 1993 
    financial statements, in its COC calculations. We have corrected this 
    oversight by offsetting the indemnity received by the loss claimed in 
    Farm C's 1993 income statement.
        Comment 13: Petitioner contends that according to the October 28, 
    1994, supplemental questionnaire response and Farm C's verification 
    report, the Department used incorrect feed costs and marketing expenses 
    for Farm C.
        Department's position: The Department agrees and has used the 
    revised feed costs and marketing expenses found in the October 28, 
    1994, supplemental questionnaire response and Farm C's verification 
    report in the cost of cultivation calculation.
    
    Skaarfish Farm Specific Issues
    
    Farm A
        Comment 14: Petitioner contends that the smolt costs that we used 
    in our calculations for Farm A were understated because the credit 
    costs incurred by the related smolt supplier of Farm A were not 
    included in the analysis.
        Skaarfish maintains that Farm A did not understate the costs of 
    financing the smolt purchases from its related supplier. Respondent 
    argues that under the terms of delivery, if Farm A was granted a longer 
    period of time for payment, the financing cost associated with that 
    longer period was reflected in the higher unit price for the smolt.
        Department's Position: We agree with respondent. The Department 
    verified the unit price of smolt purchased from Farm A's supplier. In 
    an arm's length transaction, those prices reflect the total costs 
    incurred by Farm A. We, therefore, used the respondent's reported smolt 
    prices in the calculation of Farm A's cost of cultivation.
        Comment 15: Petitioner contends that the Department should use the 
    smolt costs contained in the Farm A verification report rather than the 
    smolt costs found in Farm A's general ledger.
        Respondent argues that the two smolt amounts differ because the one 
    in the verification report includes the 20 percent value-added tax 
    while the amount found in the general ledger does not.
        Department's Position: We agree with respondent. As noted in the 
    verification
    
    [[Page 65526]]
    
    report, the correct smolt expense is found in the general ledger, net 
    of the value-added tax.
    Farm E
        Comment 16:  Petitioner contends that the Department should use the 
    smolt costs discovered at verification for Farm E.
        Respondent maintains that Farm E correctly accounted for its smolt 
    costs. Respondent maintains that the amount petitioner is arguing in 
    favor of includes the value-added tax which does not belong in the 
    Department's cost calculations.
        Department's Position: We agree with respondent. The correct smolt 
    expense is found in the general ledger, net of the value-added tax.
    Farm G
        Comment 17: Petitioner contends that the Department incorrectly did 
    not include any processing costs for Farm G.
        Department's Position: We agree and have included the appropriate 
    processing costs for Farm G. We also discovered that an incorrect 
    processing cost was used for the farms that did not submit processing 
    costs. We replaced the processing cost used in the preliminary results 
    with the adjusted processing cost provided by Skaarfish in its August 
    11, 1994 submission.
        Comment 18: Petitioner contends that the Department should not 
    allow the use of warranty expense data submitted by Skaarfish during 
    verification because it is new and unsolicited information. 
    Furthermore, petitioner claims that the use of this information 
    constitutes a double counting of warranty expenses. To demonstrate the 
    double counting, petitioner points to the August 25, 1994, 
    questionnaire response where Skaarfish stated: ``To the best of our 
    knowledge and belief there were no warranty expenses for sales to 
    France during the POR. In any event, a warranty will normally result in 
    a credit-note/price-reduction to the customer and is therefore covered 
    by the reported unit prices.''
        Skaarfish argues that the Department has a long-standing policy to 
    accept corrections of previously submitted information at verification. 
    The error in reporting warranty expense information was a result of a 
    misunderstanding between company officials in France regarding what 
    constituted a warranty expense. Respondent claims that the error did 
    not amount to a comprehensive error or misstatement of fact, nor was 
    the information hidden or misrepresented during verification (citing 
    Disposable Pocket Lighters From the People's Republic of China, 60 FR 
    22359, 22365 (May 5, 1995).) Furthermore, respondent argues that there 
    is no evidence on the record to suggest a similar warranty expense on 
    U.S. sales.
        Department's Position: We agree with respondent. At verification 
    Skaarfish discovered that there was a misunderstanding concerning 
    warranty expenses in the compilation of its questionnaire response. To 
    correct the mistake, Skaarfish submitted third country warranty expense 
    data at verification. It is the Department's practice to accept 
    corrections of previously submitted information at verification as long 
    as those errors are not comprehensive or exhibit a systematic 
    misstatement of fact. (See Sulfur Dyes, Including Sulfur Vat Dyes, From 
    the People's Republic of China, 58 F.R. 7537 (February 8, 1993).) 
    Furthermore, the Department verified the accuracy of the French 
    warranty data.
        Comment 19: Petitioner contends that the Department should correct 
    the methodology Skaarfish used to allocate depreciation costs. 
    Petitioner argues that Skaarfish allocated depreciation expenses to 
    common areas and to non-production activities such as parking lots. 
    Petitioner proposes that the Department re-allocate depreciation costs 
    based on the relative space occupied by Skaarfish's production lines.
        Department's Position: We agree, in part with petitioner. 
    Respondents incorrectly allocated depreciation expenses. However, 
    basing the allocation of all depreciation expenses on a square-meter 
    basis, as proposed by petitioner, neglects the level of financial 
    investment required for the various production activities. Therefore, 
    for these final results we allocated costs associated with the 
    depreciation of machinery and equipment on the basis of the 
    relationship of costs of processing salmon to all other products. The 
    costs associated with the depreciation of buildings were allocated on 
    the basis of square meters. This methodology more accurately reflects 
    the amount of depreciation expense to be allocated to subject 
    merchandise and is the methodology used in the first administrative 
    review. (See Fresh and Chilled Atlantic Salmon From Norway: Final 
    Results of Antidumping Administrative Review, 58 FR 37912).
    
    Final Results of Review 
    
        As a result of comments received and programming errors corrected, 
    we have revised our preliminary results and determine that the 
    following margins exist for the period April 1, 1993, through March 31, 
    1994:
    
                                                                            
    ------------------------------------------------------------------------
                                                                     Margin 
                        Manufacturer/Exporter                      (percent)
    ------------------------------------------------------------------------
    ABA A/S......................................................     *31.81
    Artic Group..................................................    **31.81
    Artic Products Norway A/S....................................     *31.81
    Brodrene Sirevag A/S.........................................     *23.80
    Cocoon Ltd A/S...............................................     *31.81
    Delfa Norge A/S..............................................     *31.81
    Delimar A/S..................................................        ***
    Deli-Nor A/S.................................................        ***
    Fjord Trading LTD. A/S.......................................     *23.80
    Fresh Marine Co. Ltd.........................................    **31.81
    Greig Norwegian Salmon.......................................    **31.81
    Harald Mowinckel A/S.........................................     *23.80
    Imperator de Norvegia........................................     *31.81
    More Seafood A/S.............................................     *31.81
    Nils Willksen A/S............................................     *31.81
    North Cape Fish A/S..........................................     *31.81
    Norwegian Salmon A/S.........................................      18.65
    Norwegian Taste Company A/S..................................    **31.81
    Olsen & Kvalheim A/S.........................................     *23.80
    Sekkingstad A/S..............................................     *23.80
    Skaarfish-Mowi A/S...........................................       2.28
    Timar Seafood A/S............................................     *31.81
    Victoria Seafood A/S.........................................    **31.81
    West Fish Ltd. A/S...........................................     *23.80
    ------------------------------------------------------------------------
    * No shipments during the period; margin from the last administrative   
      review.                                                               
    ** No response; highest margin from the original LTFV investigation.    
    *** No shipments or sales subject to this review; the firm had no       
      individual rate from any segment of this proceeding.                  
    
        The Department shall determine, and the Customs Service shall 
    assess, antidumping duties on all appropriate entries. The Department 
    will issue appraisement instructions concerning all respondents 
    directly to the U.S. Customs Service.
        Furthermore, the following deposit requirements will be effective 
    for all shipments of the subject merchandise, entered, or withdrawn 
    from warehouse, for consumption on or after the publication date of the 
    final results of this administrative review, as provided for by section 
    751(a)(1) of the Act: (1) The cash deposit rates for the reviewed firms 
    will be the rates indicated above; (2) 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; (3) if the exporter is not a firm covered in this review, a 
    prior review or the original LTFV 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 (4) if 
    neither the exporter nor the manufacturer is a firm covered in this or 
    any previous review conducted by the Department or the LTFV 
    investigation, the cash deposit
    
    [[Page 65527]]
    
    rate will be 23.80 percent, the all others rate from the LFTV 
    investigation.
        These deposit requirements shall remain in effect until publication 
    of the final results of the next administrative review.
        This notice serves as a final reminder to importers of their 
    responsibility under 19 CFR 353.26 to file a 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 notice also serves as a reminder to parties subject to 
    administrative protective order (APO) of their responsibility 
    concerning the disposition of proprietary information disclosed under 
    APO in accordance with 19 CFR 353.34(d). Timely written notification or 
    conversion to judicial protective order is hereby requested. Failure to 
    comply with the regulations and the terms of the APO is a sanctionable 
    violation.
        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.
    
        Dated: December 4, 1996.
    Robert S. LaRussa,
    Acting Assistant Secretary for Import Administration.
    [FR Doc. 96-31590 Filed 12-12-96; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
12/13/1996
Published:
12/13/1996
Department:
International Trade Administration
Entry Type:
Notice
Action:
Notice of Final Results of Antidumping Duty Administrative Review.
Document Number:
96-31590
Dates:
December 13, 1996.
Pages:
65522-65527 (6 pages)
Docket Numbers:
A-403-801
PDF File:
96-31590.pdf