[Federal Register Volume 59, Number 23 (Thursday, February 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2450]
[[Page Unknown]]
[Federal Register: February 3, 1994]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-351-605]
Frozen Concentrated Orange Juice From Brazil; Preliminary Results
of Antidumping Duty Administrative Review and Intent To Revoke Order in
Part
AGENCY: International Trade Administration, Import Administration,
Department of Commerce.
ACTION: Notice of preliminary results of antidumping duty
administrative review and intent to revoke in part.
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SUMMARY: In response to timely requests for an administrative review by
the respondents, Branco Peres Citrus (Branco Peres), Citropectina,
S.A., and Frutropic, S.A., the Department of Commerce (the Department)
is conducting an administrative review of the antidumping duty order on
frozen concentrated orange juice (FCOJ) from Brazil. The review covers
three manufacturers/exporters of this merchandise to the United States
and the period May 1, 1991 through April 30, 1992. We preliminarily
determine the dumping margins for Branco Peres, Citropectina, and
Frutropic to be zero or de minimis during this period.
The Department intends to revoke the antidumping duty order with
respect to Frutropic because we have reason to believe that Frutropic
has sold the subject merchandise at not less than foreign market value
for a period of at least three consecutive years and is not likely to
sell the subject merchandise at less than foreign market value in the
future. We invite interested parties to comment on these preliminary
results.
EFFECTIVE DATE: February 3, 1994.
FOR FURTHER INFORMATION CONTACT: David Mason or Rick Herring, Office of
Countervailing Compliance, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
2786.
SUPPLEMENTARY INFORMATION:
Background
On May 5, 1987, the Department published in the Federal Register an
antidumping duty order on frozen concentrated orange juice (FCOJ) from
Brazil (52 FR 16426). On May 31, 1992, pursuant to the Department's
notice of ``Opportunity to Request Administrative Review'' (57 FR
19412) of the antidumping duty order on FCOJ from Brazil for the period
May 1, 1991 through April 30, 1992, Branco Peres, Citropectina, and
Frutropic requested an administrative review for this period.
Accordingly, the Department initiated this administrative review on
June 18, 1992 (57 FR 27212).
In addition, Frutropic submitted a timely request for revocation of
the antidumping duty order, accompanied by the certification required
by Sec. 353.25(b)(1) of the Department's regulations. The Department
has now conducted this review in accordance with section 751(a) of the
Tariff Act of 1930, as amended (the Act).
Scope of Review
Imports covered by the administrative review are shipments of
frozen concentrated orange juice (FCOJ) from Brazil. The merchandise is
currently classifiable under item 2009.11.00 of the Harmonized Tariff
Schedule (HTS). The HTS item number is provided for convenience and
Customs purposes. The written description remains dispositive.
The review covers three manufacturers/exporters of the subject
merchandise to the United States for the period May 1, 1991 through
April 31, 1992: Branco Peres, Citropectina, and Frutropic.
United States Price
In calculating the United States price, we used both purchase price
and exporter's sales price (ESP) as defined in section 772 of the
Tariff Act. Purchase price was used for those sales to the United
States which were made prior to importation, while ESP was used for
those sales which were made after importation.
Purchase price was based on the packed f.o.b. price to unrelated
purchasers in the United States. For purchase price sales, where
applicable, we made deductions for foreign inland freight, Brazilian
port charges, export taxes, commissions, packing, and credit expenses.
ESP was based on the packed delivered price to the first unrelated
purchaser in the United States. For ESP sales, we made deductions for
brokerage and handling expenses, foreign inland freight, ocean freight
and marine insurance, U.S. duty, U.S. Customs' fees and harbor
maintenance fees, U.S. inland freight and insurance, packing,
commissions, discounts, rebates, credit expenses and indirect selling
expenses. No other adjustments were claimed or allowed.
Foreign Market Value
In calculating foreign market value (FMV), the Department based FMV
on third country f.o.b. prices for all respondents, in accordance with
section 773 of the Act. We made deductions, where appropriate, for
foreign inland freight, marine insurance, foreign and brokerage and
handling, and export taxes. Where applicable, we deducted foreign
packing expenses and added U.S. packing to third country price (packing
costs were not incurred on bulk sales). We adjusted FMV, where
applicable, for differences in credit expenses, and post-sale
warehousing expenses. In the case of comparisons to ESP sales, we made
an adjustment for indirect selling expenses, limited by the amount of
indirect selling expenses incurred in the United States. No other
adjustments were claimed or allowed.
In calculating FMV in the context of administrative reviews, it is
the Department's practice to use a monthly weighted-average of third
country or home market sales, as appropriate, for comparison to the
U.S. sales price when several home market or third country sales may
represent the behavior of the company for a given month during the
period of review. (See ``Frozen Concentrated Orange Juice from Brazil;
Preliminary Results and Termination in Part of Antidumping Duty
Administrative Review,'' February 3, 1992, 57 FR 3995.) However, in
this review, distortions could result from the application of a monthly
FMV because of hyper-inflation. Where such distortions would have been
created, we calculated FMVs, as we have done in previous reviews, based
on shorter periods as determined by the Brazilian government-mandated
minimum export price (which is derived from the FCOJ 30-day futures
contract price on the New York Cotton Exchange). (See ``Frozen
Concentrated Orange Juice From Brazil; Preliminary Results and
Termination In Part of Antidumping Duty Administrative Review; Intent
to Revoke in Part the Antidumping Duty Order,'' June 19, 1991, 56 FR
28138.)
In the case of Branco Peres, the Department used constructed value,
as defined in section 773 of the Act, for comparison to those U.S.
sales where no contemporaneous third country sales existed.
Constructed value consisted of the sum of the costs of materials,
fabrication, general selling and administrative expenses, freight and
profit. Because the actual profit was more than the statutory minimum
of eight percent of the sum of general expenses and cost of
manufacture, we added the actual profit in accordance with section
773(e)(1)(B)(ii) of the Act.
Preliminary Results of the Review
As a result of this review, we preliminarily determine the dumping
margin to be:
------------------------------------------------------------------------
Margin
Manufacturer/exporter Time period (percent)
------------------------------------------------------------------------
Branco Peres............................... 5/1/91 to...... 0.03.
4/30/92........
Citropectina............................... 5/1/91 to...... Zero.
4/30/92........
Frutropic.................................. 5/1/91 to...... Zero.
4/30/92........
------------------------------------------------------------------------
The Department intends to revoke the antidumping duty order with
respect to Frutropic if, at the time the Department publishes the final
results of this review, Frutropic has demonstrated three consecutive
years of sales at not less than foreign market value, and it is not
likely that Frutropic will sell subject merchandise at less than
foreign market value in the future. As required by
Sec. 353.25(c)(2)(ii) of the Department's regulations, the Department
has conducted a verification of all factual information submitted by
Frutropic in this administrative review.
The Department shall determine, and the U.S. Customs Service shall
assess, antidumping duties on all appropriate entries. Individual
differences between United States price and foreign market value may
vary from the percentage stated above. Upon completion of this
administrative review, the Department will issue appraisement
instructions 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 by section
751(a)(1) of the Act: (1) The cash deposit rate for the reviewed
company, in the event the order is not revoked in part, will be that
established in the final results of this administrative review; (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 less-than-fair-
value investigation, but the manufacturer is such a firm, the cash
deposit rate will be the rate established for the most recent period
for the manufacturer of the merchandise.
The cash deposit rate for all other manufacturers or exporters will
be 1.96 percent ad valorem. On May 25, 1993, the Court of International
Trade (CIT) in Floral Trade Council v. United States, Slip Op. 93-79,
and Federal-Mogul Corporation v. United States, Slip Op. 93-83, decided
that once an ``all others'' rate is established for a company, it can
only be changed through an administrative review. The Department has
determined that in order to implement these decisions, it is
appropriate to reinstate the original ``all others'' rate from the
less-than-fair-value (LTFV) investigation (or that rate as amended for
correction of clerical errors or as a result of litigation) in
proceedings governed by antidumping duty orders for the purposes of
establishing cash deposits in all current and future administrative
reviews. In proceedings governed by antidumping findings, unless we are
able to ascertain the ``all others'' rate from the Treasury LTFV
investigation, the Department has determined that it is appropriate to
adopt the ``new shipper'' rate established in the first final results
of administrative review published by the Department (or that rate as
amended for correction of clerical error or as a result of litigation)
as the ``all others'' rate for the purposes of establishing cash
deposits in all current and future administrative reviews.
Because this proceeding is governed by an antidumping duty order,
the ``all others'' rate for the purposes of this review will be 1.96
percent ad valorem, the ``all others'' rate established in the LTFV
investigation by the Department, (52 FR 8324, March 17, 1987).
This notice also serves as a preliminary 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.
Public Comment
Parties to the proceeding may request disclosure within five days
of the date of publication of this notice in the Federal Register, and
any interested party may request a hearing within 10 days of
publication. Any hearing, if requested, will be held 44 days after the
date of publication, or the first workday thereafter. Case briefs and/
or written comments from interested parties may be submitted not later
than 30 days after the date of publication. Rebuttal briefs and
rebuttals to written comments, limited to issues raised in those
comments, may be filed not later than 37 days after publication. The
Department will publish a notice of final results of this
administrative review, including an analysis of issues raised in any
written comments.
This administrative review and notice are in accordance with
section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) and
Sec. 353.22(c)(5)) of the Department's regulations.
Dated: January 26, 1994.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 94-2450 Filed 2-2-94; 8:45 am]
BILLING CODE 3510-DS-P
