[Federal Register Volume 61, Number 81 (Thursday, April 25, 1996)]
[Notices]
[Pages 18377-18378]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10112]
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COMMISSION ON CIVIL RIGHTS
DEPARTMENT OF COMMERCE
[A-201-820]
Initiation of Antidumping Duty Investigation: Fresh Tomatoes From
Mexico
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: April 25, 1996.
FOR FURTHER INFORMATION CONTACT: John Brinkmann at (202) 482-5288 or
Michelle Frederick at (202) 482-0186, Office of Antidumping
Investigations, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, N.W., Washington, DC 20230.
Initiation of Investigation
The 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 (URAA).
The Petition
Pursuant to 19 CFR 353.12(c), an antidumping duty petition must be
filed at the Department of Commerce (the Department) and the U.S.
International Trade Commission (ITC) on the same day. In this instance,
the ITC does not consider the petition covering fresh tomatoes from
Mexico to have been filed until April 1, 1996. As such, the Department
considers the petition as having been filed in proper form on April 1,
1996, not March 29, 1996.
The petitioners filed supplements to the petition, including an
amended list of petitioners, on April 11 and 17, 1996. The petitioners
in this investigation are: the Florida Tomato Growers Exchange; the
Florida Tomato Exchange; the Tomato Committee of the Florida Fruit and
Vegetable Association; the South Carolina Tomato Association; the
Gadsden County Tomato Growers Association; and an Ad Hoc Group of
Florida, California, Georgia, Pennsylvania, South Carolina, and
Virginia Tomato Growers, as detailed in Exhibit 5 of the April 11,
1996, supplement.
In accordance with section 732(b) of the Act, the petitioners
allege that imports of fresh tomatoes from Mexico are being, or are
likely to be, sold in the United States at less than fair value within
the meaning of section 731 of the Act, and that such imports are
materially injuring, or threatening material injury to, a U.S.
industry.
The petitioners state that they have standing to file the petition
because they are interested parties as defined under section 771(9)(C)
of the Act.
Determination of Industry Support for the Petition
Section 732(c)(4)(A) of the Act requires that the Department
determine, prior to the initiation of an investigation, that a minimum
percentage of the domestic industry supports an antidumping petition. A
petition meets these minimum requirements if the domestic producers or
workers who support the petition account for (1) at least 25 percent of
the total production of the domestic like product; and (2) more than 50
percent of the production of the domestic like product produced by that
portion of the industry expressing support for, or opposition to, the
petition.
One producer has informed the Department that it takes no position
regarding this antidumping petition and a second producer has stated
that it opposes the petition. On April 16, 1996, we received a letter
on behalf of the Confederacion de Asociaciones Agricolas de Estado de
Sinaloa (CAADES), an association of producers of fresh tomatoes in
Mexico. The CAADES objections focus on the level of individual
supporters of the petition and did not address the support of the
Florida and South Carolina trade associations.
Our review of the production data provided in the petition and
other information readily available to the Department indicates that
the petitioners and supporters of the petition account for more than 50
percent of the total production of the domestic like product, thus
meeting the standard of 732(c)(4)(A) and requiring no further action by
the Department pursuant to 732(c)(4)(D). Accordingly, the Department
determines that the petition is supported by the domestic industry.
Several supporters of the petition did not agree to release their
identities to the public. The production data of these supporters was
not necessary to establish that the petitioners account for more than
50 percent of the total production of the domestic like product. For
this reason, we are not determining whether to consider non-public
supporters of a petition in establishing industry support.
Scope of the Investigation
The products covered by this investigation are all fresh or chilled
tomatoes (fresh tomatoes) except for those tomatoes which are for
processing. For purposes of this investigation, processing is defined
to include preserving by any commercial process, such as canning,
dehydrating, drying or the addition of chemical substances, or
converting the tomato product into juices, sauces or purees. Further,
imports of fresh tomatoes for processing are accompanied by an
``Importer's Exempt Commodity Form'' (FV-6) (within the meaning of 7
CFR section 980.501(a)(2) and 980.212(i)). Fresh tomatoes that are
imported for cutting up, not further processed (e.g., tomatoes used in
the preparation of fresh salsa or salad bars), and not accompanied by
an FV-6 form are covered by the scope of this investigation.
All commercially-grown tomatoes sold in the United States, both for
the fresh market and for processing, are classified as Lycopersicon
esculentum. Important commercial varieties of fresh tomatoes include
common round, cherry, plum, and pear tomatoes.
Tomatoes imported from Mexico covered by this investigation are
classified under the following subheadings of the Harmonized Tariff
Schedules of the United States (HTS), according to the season of
importation: 0702.00.20, 0702.00.40, 0702.00.60, and 9906.07.01 through
9906.07.09. Although the HTS numbers are provided for convenience and
Customs purposes, our written description of the scope of this
proceeding is dispositive.
Export Price and Normal Value
The petitioners based export prices on prices published by the U.S.
Department of Agriculture (USDA) Marketing Service. These prices
represented packed, F.O.B. shipping point prices,
[[Page 18378]]
duties, and border crossing charges paid for mature green, vine ripe,
and plum tomatoes of various sizes imported from Mexico through
Nogales, Arizona. The petitioners made deductions to export price for
movement expenses and commissions. They provided additional export
price calculations incorporating adjustments for ``backbilling'' (post-
sale price protection adjustments), quality mix differentials, and
price ``overstatements'' based on differences between USDA data and
Bureau of Census import statistics.
The petitioners based normal value on wholesale prices for vine
ripe and plum tomatoes from several wholesale markets in Mexico, as
published by the USDA marketing service. The petitioners made
adjustments to home market prices for wholesaler markups, commissions,
and movement expenses.
To calculate monthly normal values for comparisons to monthly
export prices, the petitioners based normal value on both home market
prices and constructed value (CV) because, in accordance with Section
773(b)(2) of the Act, the petitioners alleged that some sales of fresh
tomatoes in the home market were made at prices below the cost of
production (COP), and therefore are not an appropriate basis for
calculating normal value.
The petitioners calculated COP using data derived from cost studies
of vine-ripe tomato production in Mexico prepared by the USDA, which
relied on cost studies reported by an association of Mexican tomato
producers. Where appropriate, the petitioners adjusted the cost data
for inflation, changes in interest rates, and currency conversion. We
adjusted the petitioners' COP by correcting the deduction for selling
expenses.
The allegation that the Mexican producers are selling the foreign
like product in the home market at prices below its COP is based upon a
comparison of the adjusted home market prices with the calculated COP.
Based on this comparison, we find reasonable grounds to believe or
suspect that sales of the foreign like product were made at prices
below COP in accordance with section 773(b)(2)(A)(i) of the Act.
Accordingly, the Department is initiating a country-wide cost
investigation.
Therefore, for the purposes of this initiation, we are accepting CV
as the appropriate basis for Mexican normal value for those petition
margin examples where the petitioners claimed that there are no above-
cost sales in the home market. The petitioners based CV on its COP
methodology, described above, deducting commission and export
transportation expenses included in these costs, and adding an amount
for profit to derive a total CV. The petitioners calculated profit
based on above-cost Mexican market prices. We revised CV by
incorporating the correction to selling expenses deducted from COP. We
also recalculated the profit amount used in CV based on a revised
database of above cost sales in the home market.
Based on comparisons of export prices, with deductions for
backbilling adjustments and ``price overstatements,'' to normal value
(with CV revised as discussed above), the petitioners allege margins of
12.86 percent to 273.42 percent.
Fair Value Comparisons
Based on the data provided by the petitioners, there is reason to
believe that imports of fresh tomatoes from Mexico are being, or are
likely to be, sold at less than fair value. If it becomes necessary at
a later date to consider the petition as a source of facts available
under section 776 of the Act, we may further review the margin
calculations in the petition.
Initiation of Investigation
We have examined the petition on fresh tomatoes and have found that
it meets the requirements of section 732 of the Act, including the
requirements concerning allegations of material injury or threat of
material injury to the domestic producers of a domestic like product by
reason of the complained-of imports, allegedly sold at less than fair
value. Therefore, we are initiating an antidumping duty investigation
to determine whether imports of fresh tomatoes from Mexico are being,
or are likely to be, sold at less than fair value. Unless extended, we
will make our preliminary determination by September 5, 1996.
Distribution of Copies of the Petition
In accordance with section 732(b)(3)(A) of the Act, a copy of the
public version of the petition has been provided to the representatives
of the Government of Mexico. Because of the large number of exporters,
we will attempt to provide a copy of the public version of the petition
to the relevant trade associations representing exporters of fresh
tomatoes named in the petition.
International Trade Commission (ITC) Notification
We have notified the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will determine by May 16, 1996, whether there is a
reasonable indication that imports of fresh tomatoes from Mexico are
causing material injury, or threatening to cause material injury, to a
U.S. industry. A negative ITC determination will result in the
investigation being terminated; otherwise, the investigation will
proceed according to statutory and regulatory time limits.
Dated: April 18, 1996.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 96-10112 Filed 4-24-96; 8:45 am]
BILLING CODE 3510-DS-P
