[Federal Register Volume 59, Number 131 (Monday, July 11, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16741]
[[Page Unknown]]
[Federal Register: July 11, 1994]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-831]
Notice of Preliminary Determination of Sales at Less Than Fair
Value: Fresh Garlic From the People's Republic of China
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: July 11, 1994.
FOR FURTHER INFORMATION CONTACT:
John Beck, 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) 482-3464.
Preliminary Determination
We preliminarily determine that fresh garlic 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 (LTFV), as provided in section
733 of the Tariff Act of 1930, as amended (the Act).
Case History
Since the notice of initiation on February 22, 1994 (59 FR 9470,
February 28, 1994), the following events have occurred.
On March 17, 1994, the U.S. International Trade Commission (ITC)
issued an affirmative preliminary determination.
Departmental Efforts to Obtain Information
During March and April 1994, the Department requested information
relating to producers/exporters of the subject merchandise in the PRC,
as follows:
On March 3, 1994, we sent an abbreviated section A
questionnaire to China's Ministry of Foreign Trade and Economic
Cooperation (MOFTEC);
On March 4, 1994, we sent a cable to the American Embassy
in Beijing;
On March 11, 1994, we sent a cable to the American Embassy
in Tokyo, and to the U.S. consulate in Hong Kong; and
On April 7, 1994, we sent an abbreviated section A
questionnaire to the China Chamber of Commerce of Imports & Exports of
Foodstuffs, Native Produce, and Animal By-Products (China Chamber)
Having received no response to our initial inquiries, follow-up
requests for information were made as follows:
On April 7, 1994, to MOFTEC; and
On April 15, 1994, to the American Embassies in Beijing
and Tokyo, and to the U.S. consulate in Hong Kong.
Respondents and Status of Questionnaires
On May 11 and 12, 1994, the Department received information from
MOFTEC and the American Embassy in Beijing, respectively, containing
the names and addresses of 40 producers/exporters of the subject
merchandise in the PRC. Based on an analysis of ships' manifest data
(PIERS), the Department estimated that the named respondents accounted
for approximately 40 percent of exports of the subject merchandise to
the United States during the period of investigation. Consequently, on
May 18, 1994, the Department sent 40 antidumping questionnaires to the
named firms, with additional copies sent to MOFTEC and the China
Chamber.
Following an entry of appearance by counsel for a previously
unnamed producer/exporter, the Department sent a questionnaire to this
additional firm on May 31, 1994. Finally, at the request of a second
previously unnamed producer/exporter, the Department sent a
questionnaire to this additional firm on June 21, 1994.
Other Events
On June 2, 1994, the Department issued a decision memorandum which
stated that we would not postpone our preliminary determination.
Based on reasonably supported allegations submitted by petitioner
on June 10, 1994, the Department initiated an investigation on June 14,
1994, of whether critical circumstances exist with respect to imports
of fresh garlic from the PRC. On June 14 and 21, 1994, the Department
requested monthly shipment data for exports to the United States from
questionnaire recipients.
Scope of Investigation
The products covered by this investigation are all grades of
garlic, whole or separated into constituent cloves, whether or not
peeled, fresh, chilled, frozen, provisionally preserved, or packed in
water or other neutral substance, but not prepared or preserved by the
addition of other ingredients or heat processing. The differences
between grades are based on color, size, sheathing and level of decay.
The subject merchandise is used principally as a food product and
for seasoning. The subject garlic is currently classifiable under
subheadings 0703.20.0000, 0710.80.7060, 0710.80.9750, 0711.90.6000, and
2005.90.9500 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.
The scope description provided above differs from the scope
description used by the Department in its notice of initiation of this
investigation (59 FR 9470, February 28, 1994). Changes to the scope
include (a) the addition of more concise language (and additional HTS
subheadings) related to the packing of the subject merchandise, and (b)
additional language to exclude further processed products. The
revisions are a result of comments received from the Customs Service on
March 17 and June 30, 1994, and from counsel for petitioner on June 29
and 30, 1994.
Period of Investigation
The period of investigation (POI) is August 1, 1993, to January 31,
1994.
Best Information Available
We have determined, in accordance with section 776(c) of the Act,
that the use of best information available (BIA) is appropriate for
sales of the subject merchandise in this investigation. In deciding
whether to use BIA, section 776(c) provides that the Department may
take into account whether the respondent was able to produce
information requested in a timely manner and in the form required. In
this case, exporters of fresh garlic from the PRC did not respond to
our requests for information.
As outlined in the ``Case History'' section of this notice, the
Department made several attempts to obtain information from a number of
sources. We have not received any responses to our questionnaire with
which to perform our antidumping analysis. Consequently, we based our
preliminary determination in this investigation on BIA.
In determining what to use as BIA, the Department follows a two-
tiered methodology, whereby the Department normally assigns lower
margins to those respondents who cooperate in an investigation, and
margins based on more adverse assumptions for those respondents who do
not cooperate in an investigation. Since the potential respondents in
this case have not cooperated, we assigned a BIA margin based on the
most adverse assumptions.
In this case, BIA is the highest margin contained in the petition
(see Initiation of Antidumping Duty Investigation: Fresh Garlic from
the People's Republic of China, 59 FR 9470, February 28, 1994), and is
listed below for all manufacturers, producers and exporters of fresh
garlic in the PRC.
Critical Circumstances
Petitioner alleges that ``critical circumstances'' exist with
respect to imports of fresh garlic from the PRC. Section 733(e)(1) of
the Act provides that there is a reasonable basis to believe or suspect
that critical circumstances exist if:
(A)(i) There is a history of dumping in the United States or
elsewhere of the class or kind of merchandise which is the subject of
the investigation, or
(ii) The person by whom, or for whose account, the merchandise was
imported knew or should have known that the exporter was selling the
merchandise which is the subject of investigation at less than its fair
value, and
(B) There have been massive imports of the class or kind of
merchandise which is the subject of the investigation over a relatively
short period.
Regarding criterion (A) above, we normally consider margins of 25
percent or more as sufficient to impute knowledge of dumping. Since the
preliminary estimated dumping margin for all exporters of fresh garlic
in the PRC is in excess of 25 percent, we can impute knowledge of
dumping under section 733(e)(1)(A)(ii) of the Act.
Regarding criterion (B) above, pursuant to 19 CFR 353.16(f), we
generally consider the following factors in determining whether imports
have been massive over a short period of time: (1) the volume and value
of the imports; (2) seasonal trends (if applicable); and (3) the share
of domestic consumption accounted for by the imports. If imports during
the period immediately following the petition increase by 15 percent
over imports during a comparable period immediately preceding the
filing of a petition, we consider them massive. Respondents have failed
to respond to the Department's questionnaire, as well as to our request
for monthly export data. As a result, the Department has assumed, as
BIA, that there have been massive imports over a relatively short
period of time.
Accordingly, because the dumping margin is sufficient to impute
knowledge of dumping, and because we have determined that imports of
fresh garlic have been massive, we preliminarily determine that
critical circumstances do exist in this investigation.
Suspension of Liquidation
In accordance with section 733(d)(1) of the Act, we are directing
the Customs Service to suspend liquidation of all entries of fresh
garlic from the PRC, as defined in the ``Scope of Investigation''
section of this notice, that are entered, or withdrawn from warehouse,
for consumption on or after the date 90 days before the date of
publication of this notice in the Federal Register. The Customs Service
shall require a cash deposit or posting of a bond equal to the
estimated margin amount by which the foreign market value of the
subject merchandise exceeds the United States price as shown below. The
suspension of liquidation will remain in effect until further notice.
------------------------------------------------------------------------
Weighted-
average
Manufacturer/producer/exporter margin
percent
------------------------------------------------------------------------
All Manufacturers/Producers/Exporters........................ 376.67
------------------------------------------------------------------------
ITC Notification
In accordance with section 733(f) of the Act, we have notified the
ITC of this determination.
Public Comment
In accordance with 19 CFR 353.38, case briefs or other written
comments in at least ten copies must be submitted to the Assistant
Secretary for Import Administration by no later than August 26, 1994,
and rebuttal briefs by no later that September 2, 1994. In accordance
with 19 CFR 353.38(b), we will hold a public hearing, if requested, to
give interested parties an opportunity to comment on arguments raised
in case or rebuttal briefs. Tentatively, the hearing will be held on
September 7, 1994, at 10:00 a.m. at the U.S. Department of Commerce,
Room 3708, 14th Street and Constitution Avenue, NW., Washington, DC
20230. Parties should confirm by telephone, the time, date, and place
of the hearing 48 hours before the scheduled time.
Interested parties who wish to request a hearing must submit a
written request to the Assistant Secretary for Import Administration,
U.S. Department of Commerce, Room B-099, within ten days of the
publication of this notice in the Federal Register. Requests should
contain: (1) the party's name, address, and telephone number; (2) the
number of participants; and (3) a list of the issues to be discussed.
In accordance with 19 CFR 353.38(b), oral presentations will be limited
to issues raised in the briefs.
This notice is published pursuant to section 733(f) of the Act (19
U.S.C. 1673b(f)) and 19 CFR 353.15(a)(4).
Dated: July 6, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-16741 Filed 7-8-94; 8:45 am]
BILLING CODE 3510-DS-P
