98-20911. Notice of Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination: Certain Preserved Mushrooms From India  

  • [Federal Register Volume 63, Number 150 (Wednesday, August 5, 1998)]
    [Notices]
    [Pages 41789-41794]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-20911]
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-533-813]
    
    
    Notice of Preliminary Determination of Sales at Less Than Fair 
    Value and Postponement of Final Determination: Certain Preserved 
    Mushrooms From India
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    EFFECTIVE DATE: August 5, 1998.
    
    FOR FURTHER INFORMATION CONTACT: Katherine Johnson or David J. 
    Goldberger, Import Administration, International Trade Administration, 
    U.S. Department of Commerce, 14th Street and Constitution Avenue, N.W., 
    Washington, D.C. 20230; telephone: (202) 482-4929 or (202) 482-4136, 
    respectively.
    
    [[Page 41790]]
    
    The Applicable Statute
    
        Unless otherwise indicated, all citations to the Tariff Act of 
    1930, as amended (``the Act''), are references to the provisions 
    effective January 1, 1995, the effective date of the amendments made to 
    the Act by the Uruguay Round Agreements Act (``URAA''). In addition, 
    unless otherwise indicated, all citations to the Department of Commerce 
    (``Department'') regulations are to the regulations at 19 CFR part 351, 
    62 FR 27296 (May 19, 1997).
    
    Preliminary Determination
    
        We preliminarily determine that certain preserved mushrooms 
    (``mushrooms'') from India are being, or are likely to be, sold in the 
    United States at less than fair value (``LTFV''), as provided in 
    section 733 of the Act. The estimated margins of sales at LTFV are 
    shown in the ``Suspension of Liquidation'' section of this notice.
    
    Case History
    
        Since the initiation of this investigation (Notice of Initiation of 
    Antidumping Investigations: Certain Preserved Mushrooms From Chile, 
    India, Indonesia, and the People's Republic of China (63 FR 5360, 
    February 2, 1998)), the following events have occurred:
        During January and February 1998, the Department requested 
    information from the U.S. Embassy in India to identify producers/
    exporters of the subject merchandise. During February 1998, the 
    Department also requested and received comments from the petitioners 
    and potential respondents regarding the model matching criteria.
        On February 27, 1998, the United States International Trade 
    Commission (``ITC'') notified the Department of its affirmative 
    preliminary injury determination in this case.
        Also on February 27, 1998, the Department issued an antidumping 
    duty questionnaire to Agro Dutch Foods (India) (``Agro Dutch''), Alpine 
    Biotech Ltd. (``Alpine Biotech''), Flex Foods, Ltd., Mandeep Mushrooms 
    Ltd. (``Mandeep''), Ponds India Ltd. (``Ponds''), Premier Mushrooms 
    Ltd. (India) (``Premier''), Saptarishi Agro Industries, Ltd. 
    (``Saptarishi''), and Transchem, Ltd. (``Transchem'') .
        On March 30, 1998, the Department issued a Federal Register notice 
    setting aside a period for interested parties to raise issues regarding 
    product coverage. (See Certain Preserved Mushrooms from Chile, India, 
    Indonesia, and the People's Republic of China: Comments Regarding 
    Product Coverage, 63 FR 16971 (April 7, 1998). No parties to this 
    investigation filed comments regarding product coverage.
        In March and April 1998, the Department received responses to 
    Section A of the questionnaire from Agro Dutch, Flex Foods, Ponds, 
    Premier, Transchem, and Saptarishi. In addition, the Department 
    received a March 14, 1998, letter from Weikfeld Agro Products Ltd., 
    stating that it did not sell the subject merchandise to the United 
    States during 1997.
        On April 1, 1998, the petitioners in this investigation, L.K. 
    Bowman, Inc., Modern Mushroom Farms, Inc., Monterey Mushrooms, Inc., 
    Mount Laurel Canning Corp., Mushroom Canning Company, Sunny Dell Foods, 
    Inc., and United Canning Corp., submitted a timely allegation pursuant 
    to section 773(b) of the Act that Agro Dutch, Ponds and Transchem had 
    made sales in the third country market at less than the COP. (These 
    three companies reported in their Section A responses that their home 
    markets were not viable). Our analysis of the allegation indicated that 
    there were reasonable grounds to believe or suspect that Agro Dutch, 
    Ponds, and Transchem sold mushrooms in the third country market at 
    prices at less than the COP. Accordingly, we initiated COP 
    investigations with respect to Agro Dutch, Ponds and Transchem pursuant 
    to section 773(b) of the Act (see Memorandum from Team to Louis Apple, 
    Office Director, dated April 6, 1998).
        On April 14, 1998, pursuant to section 777A(c) of the Act, the 
    Department determined that, due to the large number of exporters/
    producers of the subject merchandise, it would limit the number of 
    mandatory respondents in this investigation. The Department determined 
    that the resources available to it for this investigation and the three 
    companion investigations limited our ability to analyze any more than 
    the responses of the two largest exporters/producers of the subject 
    merchandise in this investigation. Based on the Section A questionnaire 
    responses, the Department selected the two largest companies, Agro 
    Dutch and Ponds, to be the mandatory respondents in this proceeding 
    (see Memorandum to Louis Apple, dated April 14, 1998).
        On April 30, 1998, the Department requested comments as to whether 
    it should consider ``whole mushroom size'' as a physical characteristic 
    for its model matching methodology. On May 14, the petitioners and 
    Ponds responded to the Department's request for information. Agro Dutch 
    responded to the Department's request for information in its 
    questionnaire responses. On June 4, 1998, petitioners filed rebuttal 
    comments on this issue.
        We received responses to Sections B, C and D of the questionnaire 
    from Agro Dutch, Flex Foods, and Ponds in April 1998. We issued 
    supplemental questionnaires for Sections A, B, C, and D to Agro Dutch 
    and Ponds in May 1998 and received responses to these questionnaires in 
    June 1998.
        On May 1, 1998, pursuant to section 733(c)(1)(A) of the Act, the 
    petitioners made a timely request to postpone the preliminary 
    determination for forty days. We granted this request and, on May 8, 
    1998, we postponed the preliminary determination until no later than 
    July 27, 1998. (See 63 FR 27264, May 18, 1998).
    
    Postponement of Final Determination and Extension of Provisional 
    Measures
    
        Pursuant to section 735(a)(2) of the Act, on July 20, 1998, Agro 
    Dutch requested that, in the event of an affirmative preliminary 
    determination in this investigation, the Department postpone its final 
    determination until not later than 135 days after the date of the 
    publication of an affirmative preliminary determination in the Federal 
    Register. On July 22, 1998, Agro Dutch amended its request to include a 
    request to extend the provisional measures to not more than six months. 
    In accordance with 19 CFR 351.210(b), because (1) our preliminary 
    determination is affirmative, (2) Agro Dutch accounts for a significant 
    proportion of exports of the subject merchandise, and (3) no compelling 
    reasons for denial exist, we are granting the respondent's request and 
    are postponing the final determination until no later than 135 days 
    after the publication of this notice in the Federal Register. 
    Suspension of liquidation will be extended accordingly. On July 23, 
    1998, Pond's made the same request.
    
    Facts Available
    
        We did not receive a questionnaire response from either Alpine 
    Biotech or Mandeep. Section 776(a)(2) of the Act provides that ``if an 
    interested party or any other person--(A) withholds information that 
    has been requested by the administering authority; (B) fails to provide 
    such information by the deadlines for the submission of the information 
    or in the form and manner requested, subject to subsections (c)(1) and 
    (e) of section 782; (C) significantly impedes a proceeding under this 
    title; or (D) provides such information but the information cannot be 
    verified as provided in section 782(i), the administering authority * * 
    * shall, subject to section 782(d), use the facts
    
    [[Page 41791]]
    
    otherwise available in reaching the applicable determination under this 
    title.'' Alpine Biotech and Mandeep failed to respond to the 
    Department's questionnaires. Accordingly, we have determined that use 
    of facts available is appropriate for both respondents.
        Section 776(b) of the Act provides that adverse inferences may be 
    used when a party has failed to cooperate by not acting to the best of 
    its ability to comply with a request for information. The exporters 
    that decided not to respond in any form to the Department's 
    questionnaire failed to act to the best of their ability in this 
    investigation. Thus, the Department has determined that, in selecting 
    from among the facts otherwise available, an adverse inference is 
    warranted.
        Section 776(c) of the Act provides that where the Department 
    selects from among the facts otherwise available and relies on 
    ``secondary information,'' such as the petition, the Department shall, 
    to the extent practicable, corroborate that information from 
    independent sources reasonably at the Department's disposal. The 
    Statement of Administrative Action accompanying the URAA, H.R. Doc. No. 
    316, 103d Cong., 2d Sess. (1994) (hereinafter, the ``SAA'') states that 
    ``corroborate'' means to determine that the information used has 
    probative value. See SAA at 870.
        In this proceeding, we considered the petition as the most 
    appropriate information on the record to form the basis for a dumping 
    calculation for these uncooperative respondents. In accordance with 
    section 776(c) of the Act, we sought to corroborate the data contained 
    in the petition. We reviewed the adequacy and accuracy of the 
    information in the petition during our pre-initiation analysis of the 
    petition, to the extent appropriate information was available for this 
    purpose (e.g., import statistics and foreign market research reports). 
    See Notice of Initiation.
        For purposes of the preliminary determination, we attempted to 
    corroborate the information in the petition. We reexamined the export 
    price and constructed value data (the NV basis for the highest petition 
    margins) provided in the petition for the highest margin calculation in 
    light of information obtained during the investigation and, to the 
    extent that the data could be corroborated, found that it continues to 
    be of probative value, except for the direct materials, labor, and 
    variable overhead costs in the petition constructed value calculation. 
    When compared to the price information for these items reported by the 
    respondents for the most comparable merchandise, we found the petition 
    costs to be significantly different. In this case, we determined that 
    it was appropriate make an adjustment in those values in order to 
    derive a margin that is reliable, relevant, and sufficiently adverse so 
    as to effectuate the statutory purposes of the adverse facts available 
    rule to induce respondents to provide the Department with complete and 
    accurate information in a timely manner. We recalculated the 
    constructed value in the petition using the highest costs for these 
    items reported by a respondent, and compared that constructed value to 
    the export price used for the highest margin in the petition in order 
    to calculate a margin for the two uncooperative respondents. The result 
    is 243.87 percent (see Memorandum to the File dated July 27, 1998).
    
    Scope of Investigation
    
        For purposes of this investigation, the products covered are 
    certain preserved mushrooms whether imported whole, sliced, diced, or 
    as stems and pieces. The preserved mushrooms covered under this 
    investigation are the species Agaricus bisporus and Agaricus bitorquis. 
    ``Preserved mushrooms'' refer to mushrooms that have been prepared or 
    preserved by cleaning, blanching, and sometimes slicing or cutting. 
    These mushrooms are then packed and heated in containers including but 
    not limited to cans or glass jars in a suitable liquid medium, 
    including but not limited to water, brine, butter or butter sauce. 
    Preserved mushrooms may be imported whole, sliced, diced, or as stems 
    and pieces. Included within the scope of the investigation are 
    ``brined'' mushrooms, which are presalted and packed in a heavy salt 
    solution to provisionally preserve them for further processing.
        Excluded from the scope of this investigation are the following: 
    (1) all other species of mushroom including straw mushrooms; (2) all 
    fresh and chilled mushrooms, including ``refrigerated'' or ``quick 
    blanched mushrooms'; (3) dried mushrooms; (4) frozen mushrooms; and (5) 
    ``marinated,'' ``acidified'' or ``pickled'' mushrooms, which are 
    prepared or preserved by means of vinegar or acetic acid, but may 
    contain oil or other additives.
        The merchandise subject to this investigation is classifiable under 
    subheadings 2003.10.27, 2003.10.31, 2003.10.37, 2003.10.43, 2003.10.47, 
    2003.10.53, and 0711.90.4000 of the Harmonized Tariff Schedule of the 
    United States (``HTS''). Although the HTS subheadings are provided for 
    convenience and Customs purposes, the written description of the 
    merchandise under investigation is dispositive.
    
    Period of Investigation
    
        The POI is January 1, 1997 through December 31, 1997.
    
    Product Comparisons
    
        In accordance with section 771(16) of the Act, we considered all 
    products produced by Agro Dutch and Ponds covered by the description in 
    the ``Scope of Investigation'' section, above, and sold by Agro Dutch 
    to the Netherlands and sold by Ponds to Denmark (see ``Home Market 
    Viability'' section below) during the POI to be foreign like products 
    for purposes of determining appropriate product comparisons to U.S. 
    sales. Where there were no sales of identical merchandise in the third 
    country to compare to U.S. sales, we compared U.S. sales to the most 
    similar foreign like product. For those U.S. sales of mushrooms for 
    which there were no comparable third country sales in the ordinary 
    course of trade (i.e., above-cost) , we compared U.S. sales to 
    constructed value (``CV'').
        In making the product comparisons, we matched foreign like products 
    based on the physical characteristics reported by the respondents in 
    the following order: preservation method, container type, mushroom 
    style, weight, grade, container solution, and label type.
        Based on an analysis of the comments received, we have not included 
    whole mushroom size as a physical characteristic for purposes of model 
    matching. The Department has received conflicting information on this 
    issue. For example, Agro Dutch claims that mini mushrooms (``minis'') 
    are a premium product and because of sales marketing and cost reasons, 
    this product characteristic must be taken into account. Ponds, on the 
    other hand, states that minis are a substandard product that brings in 
    lower prices than normal size whole mushrooms. The petitioners claim 
    that mushroom size is not a relevant product characteristic for 
    marketing or cost purposes. Accordingly, there is an insufficient basis 
    on the record to find that an additional characteristic is needed at 
    this time.
    
    Fair Value Comparisons
    
        To determine whether sales of mushrooms from India to the United 
    States were made at less than fair value, we compared export price 
    (``EP'') to the Normal Value (``NV''), as described in the ``Export 
    Price'' and ``Normal Value'' sections of this notice, below. In 
    accordance with section 777A(d)(1)(A)(i) of the Act, we calculated 
    weighted-average EPs for comparison to weighted-average NVs.
    
    [[Page 41792]]
    
    Level of Trade
    
        In accordance with section 773(a)(1)(B) of the Act, to the extent 
    practicable, we determine NV based on sales in the comparison market at 
    the same level of trade (``LOT'') as the EP transaction. The NV LOT is 
    that of the starting-price sales in the comparison market or, when NV 
    is based on CV, that of the sales from which we derive selling, general 
    and administrative (``SG&A'') expenses and profit. For EP, the LOT is 
    also the level of the starting-price sale, which is usually from 
    exporter to importer. To determine whether NV sales are at a different 
    level of trade than EP, we examined stages in the marketing process and 
    selling functions along the chain of distribution between the producer 
    and the unaffiliated customer. If the comparison-market sales are at a 
    different LOT and the difference affects price comparability, as 
    manifested in a pattern of consistent price differences between the 
    sales on which NV is based and comparison-market sales at the LOT of 
    the export transaction, we make an LOT adjustment under section 
    773(a)(7)(A) of the Act.
        While neither Agro Dutch nor Ponds claimed a LOT adjustment, we 
    have, nonetheless, undertaken an evaluation to determine whether such 
    an adjustment was necessary. In so doing, we examined both respondents' 
    distribution systems, including selling functions, classes of 
    customers, and selling expenses. Ponds sold to only one class of 
    customer in each market. Ponds reported that it does not incur any 
    selling expenses in the U.S. or third country markets. With regard to 
    Agro Dutch, all sales in both markets are made through one channel of 
    distribution. Accordingly, all comparisons are at the same level of 
    trade for both respondents and an adjustment pursuant to section 
    773(a)(7)(A) is not warranted.
    
    Export Price
    
        For Agro Dutch and Ponds, we used EP methodology, in accordance 
    with section 772(a) of the Act, because the subject merchandise was 
    sold directly to the first unaffiliated purchaser in the United States 
    prior to importation and CEP methodology was not otherwise indicated.
    
    Ponds
    
        We based EP on the packed prices to unaffiliated purchasers in the 
    United States. We made deductions for foreign inland freight, foreign 
    inland insurance and Indian export duty in accordance with section 
    772(c)(2)(A) of the Act.
    
    Agro Dutch
    
        We based EP on the packed FOB or C&F prices to unaffiliated 
    purchasers in the United States. We made deductions, where appropriate, 
    for foreign inland freight, brokerage and handling, international 
    freight, and Indian export duties, in accordance with section 
    772(c)(2)(A) of the Act.
    
    Normal Value
    
        After testing (1) home market and third country market viability 
    and (2) whether third country sales were at below-cost prices, we 
    calculated NV as noted in the ``Price to Price Comparisons'' and 
    ``Price to CV Comparisons'' sections of this notice.
    
    1. Home and Third Country Market Viability
    
        In order to determine whether there is a sufficient volume of sales 
    in the home market to serve as a viable basis for calculating NV (i.e., 
    the aggregate volume of home market sales of the foreign like product 
    is equal to or greater than five percent of the aggregate volume of 
    U.S. sales), we compared the respondents' volume of home market sales 
    of the foreign like product to the volume of U.S. sales of the subject 
    merchandise, in accordance with section 773(a)(1) of the Act. Because 
    both Agro Dutch's and Pond's aggregate volume of home market sales of 
    the foreign like product was less than five percent of its aggregate 
    volume of U.S. sales for the subject merchandise, we determined that 
    the home market was not viable for either respondent. However, we 
    determined that the third country markets of the Netherlands and 
    Denmark were viable for Agro Dutch and Ponds, respectively, in 
    accordance with section 773(a)(1)(B)(ii) of the Act. Therefore, 
    pursuant to section 773(a)(1)(C), we have used third country sales as a 
    basis for NV.
        In its Section A response, Agro Dutch argued that the foreign like 
    product sold in Mexico is the most appropriate for comparison to the 
    subject merchandise because it is more similar to the product exported 
    to the United States. However, we selected the Netherlands because it 
    is Agro Dutch's largest third country market and we found identical 
    matches to Agro Dutch's U.S. sales using the model matching hierarchy 
    discussed above under ``Product Comparisons.'' We selected Denmark as 
    the appropriate third country market for Ponds because it was the 
    largest of Ponds' third country markets. See 19 CFR 351.404(e).
    
    2. Cost of Production Analysis
    
        As stated in the ``Case History'' section of the notice, based on a 
    timely allegation filed by the petitioners, the Department initiated an 
    investigation to determine whether Agro Dutch's and Ponds' third 
    country sales were made at prices less than the COP.
        We conducted the COP analysis described below.
    A. Calculation of COP
        In accordance with section 773(b)(3) of the Act, we calculated COP 
    based on the sum of the cost of materials and fabrication for the 
    foreign like product, plus an amount for third country SG&A, interest 
    expenses, and packing costs. We used the information from Agro Dutch's 
    and Ponds' Section D supplemental questionnaire responses to calculate 
    COP, with the following adjustments:
        Agro Dutch. (1) We calculated COP using the average direct 
    materials expense reported by Agro Dutch, instead of Agro Dutch's 
    original direct material costs, which were derived using a net 
    realizable value allocation.
        (2) In order to put the general and administrative (``G&A'') rate 
    on the same basis as the per-unit cost of manufacturing, we excluded 
    certain expense items from the cost of goods sold used by Agro Dutch as 
    the denominator in its calculation.
        (3) We made the same revisions to the denominator used in the 
    financial expense rate for the same purposes.
        (4) Finally, we have not included the startup period adjustment 
    amounts claimed by Agro Dutch in the COP calculations. Agro Dutch 
    calculated the startup adjustments based on total production costs. 
    According to the Statement of Administrative Action (``SAA''), section 
    B.5.d.3, page 167: ``Commerce will replace unit production costs 
    incurred during the startup period with unit production costs incurred 
    at the end of the startup period.'' Actual costs for the newly built 
    rooms at the end of the startup phase were not used in Agro Dutch's 
    calculation of the adjustments. Although we have preliminarily denied 
    Agro Dutch's startup adjustment on the basis that it was miscalculated, 
    we will continue to analyze the company's claim that it meets the 
    statutory conditions for startup under section 773(f)(1)C) of the Act.
        Ponds. (1) We used Ponds' cost worksheets based on actual yields in 
    our calculations instead of relying on Pond's per-unit costs derived 
    from hypothetical yields.
        (2) We increased the cost of manufacturing for certain minis to 
    include an amount for expenses incurred on the reprocessing of minis.
        (3) We also revised per-unit variable overhead costs to exclude the 
    Indian
    
    [[Page 41793]]
    
    export duty, which we have recalculated as a movement expense.
    B. Test of Third Country Sales Prices
        We compared the weighted-average COPs for Agro Dutch and Ponds, 
    adjusted where appropriate, to third country sales prices of the 
    foreign like product, as required under section 773(b) of the Act. In 
    determining whether to disregard third country sales made at prices 
    less than the COP, we examined whether (1) within an extended period of 
    time, such sales were made in substantial quantities, and (2) such 
    sales were made at prices which permitted the recovery of all costs 
    within a reasonable period of time. On a product-specific basis, we 
    compared the COP to the third country prices, less any applicable 
    movement charges, rebates, discounts, and direct and indirect selling 
    expenses.
    C. Results of the COP Test
        Pursuant to section 773(b)(2)(C) of the Act, where less than 20 
    percent of a respondent's sales of a given product were at prices less 
    than the COP, we did not disregard any below-cost sales of that product 
    because we determined that the below-cost sales were not made in 
    ``substantial quantities.'' Where 20 percent or more of a respondent's 
    sales of a given product during the POI were at prices less than the 
    COP, we determined such sales to have been made in ``substantial 
    quantities'' within an extended period of time, in accordance with 
    section 773(b)(2)(B) of the Act. In such cases, because we compared 
    prices to weighted-average COPs for the POI, we also determined that 
    such sales were not made at prices which would permit recovery of all 
    costs within a reasonable period of time, in accordance with section 
    773(b)(2)(D) of the Act. Therefore, we disregarded the below-cost 
    sales. Where all sales of a specific product were at prices below the 
    COP, we disregarded all sales of that product. For those U.S. sales of 
    mushrooms for which there were no comparable (above-cost) third country 
    sales in the ordinary course of trade, we compared EP to CV, in 
    accordance with section 773(a)(4) of the Act.
        We found that, for certain mushroom products sold by Agro Dutch, 
    more than 20 percent of third country sales were sold at below COP 
    prices within an extended period of time in substantial quantities. We 
    therefore excluded these sales and used the remaining above-cost sales 
    as the basis of determining NV, in accordance with section 773(b)(1) of 
    the Act. For Ponds, we found that all of the third country sales were 
    at prices less than the COP. Thus, in the absence of any above-cost 
    third country sales, we compared EP to CV in accordance with section 
    773(a)(4) of the Act.
    D. Calculation of CV
        In accordance with section 773(e)(1) of the Act, we calculated CV 
    based on the sum of cost of materials, fabrication, SG&A, interest, and 
    U.S. packing costs. We made the same adjustments to the reported costs 
    for the CV calculation as we made for the COP calculation.
        For Agro Dutch, all comparisons were made on a price-to-price 
    basis. Thus, it was not necessary to calculate CV.
        As stated above with regard to Ponds, since there were no above-
    cost Danish sales and, hence, no actual company-specific profit data 
    available for Ponds's sales of the foreign like product to Denmark, we 
    calculated profit in accordance with section 773(e)(2)(B)(iii) of the 
    Act and the Statement of Administrative Action accompanying the URAA, 
    H.R. Doc. No. 316, 103d Cong., 2d Sess. at 841. (1994) (``SAA''). 
    Section 773(e)(2)(B)(iii) states that profit may be determined under 
    any reasonable method with the appropriate ``profit cap.'' The SAA, 
    however, provides that where, due to the absence of data, the 
    Department cannot determine amounts for profit under alternatives (i) 
    or (ii) of section 773(e)(2)(B) of the Act or a ``profit cap'' under 
    alternative (iii) of section 773(e)(2)(B) of the Act, the Department 
    may apply alternative (iii) on the basis of the facts available. In 
    this case, we are unable to determine an amount for profit under 
    alternatives (i) or (ii), or a ``profit cap'' under alternative (iii) 
    because we do not have actual amounts incurred by other companies on 
    home market sales of the same general category of products (the so-
    called profit cap). Therefore, as facts available under section 
    773(e)(2)(B)(iii) of the Act, for Ponds' profit we are using a rate 
    calculated from Ponds' 1996 financial statements for mushrooms. We 
    believe this data is a reasonable surrogate for profit because it is 
    based upon a period in which there was no alleged dumping. For SG&A, we 
    have used Ponds' actual SG&A expense on sales to the third country. 
    This data reflects Ponds' actual experience in selling the foreign like 
    product.
    
    Price-to-Price Comparisons
    
        We calculated NV based on delivered prices to unaffiliated 
    customers. We made deductions, where appropriate, from the starting 
    price for inland freight, international freight, brokerage and 
    handling, and Indian customs duty. In addition, we made adjustments 
    under section 773(a)(6)(C)(iii) of the Act, where appropriate, for 
    differences in circumstances of sale for imputed credit expenses. 
    Finally, we deducted third country packing costs and added U.S. packing 
    costs, in accordance with section 773(a)(6)(A) and (B) of the Act.
    
    Price-to-CV Comparisons
    
        For price-to-CV comparisons, we made adjustments to CV in 
    accordance with section 773(a)(8) of the Act. We deducted from CV the 
    weighted-average third country direct selling expenses and added the 
    weighted-average U.S. product-specific direct selling expenses, in 
    accordance with section 773(a)(6)(C)(iii) of the Act.
    
    Currency Conversion
    
        We made currency conversions into U.S. dollars based on the 
    exchange rates in effect on the dates of the U.S. sales as certified by 
    the Federal Reserve Bank, in accordance with section 773(A) of the Act.
    
    Verification
    
        As provided in section 782(i) of the Act, we will verify all 
    information relied upon in making our final determination.
    
    Suspension of Liquidation
    
        In accordance with section 733(d) of the Act, we are directing the 
    Customs Service to suspend liquidation of all imports of subject 
    merchandise that are entered, or withdrawn from warehouse, for 
    consumption on or after the date of publication of this notice in the 
    Federal Register. We will instruct the Customs Service to require a 
    cash deposit or the posting of a bond equal to the weighted-average 
    amount by which the NV exceeds the export price, as indicated in the 
    chart below. These suspension-of-liquidation instructions will remain 
    in effect until further notice. The weighted-average dumping margins 
    are as follows:
    
    ------------------------------------------------------------------------
                                                                   Weighted-
                                                                    average 
                        Exporter/manufacturer                       margin  
                                                                  percentage
    ------------------------------------------------------------------------
    Agro Dutch Foods Limited....................................        2.75
    Pond's India, Ltd...........................................       15.18
    Alpine Biotech Ltd..........................................      243.87
    Mandeep Mushrooms Ltd.......................................      243.87
    All Others..................................................        9.97
    ------------------------------------------------------------------------
    
    ITC Notification
    
        In accordance with section 733(f) of the Act, we have notified the 
    ITC of our determination. If our final determination is affirmative, 
    the ITC will determine before the later of 120 days after the date of 
    this preliminary determination or 45 days after our final determination 
    whether these imports
    
    [[Page 41794]]
    
    are materially injuring, or threaten material injury to, the U.S. 
    industry.
    
    Public Comment
    
        Case briefs or other written comments in at least ten copies must 
    be submitted to the Assistant Secretary for Import Administration no 
    later than October 14, 1998, and rebuttal briefs no later than October 
    21, 1998. A list of authorities used and an executive summary of issues 
    should accompany any briefs submitted to the Department. Such summary 
    should be limited to five pages total, including footnotes. In 
    accordance with section 774 of the Act, we will hold a public hearing, 
    if requested, to afford interested parties an opportunity to comment on 
    arguments raised in case or rebuttal briefs. Tentatively, the hearing 
    will be held on October 23, 1998, time and room to be determined, at 
    the U.S. Department of Commerce, 14th Street and Constitution Avenue, 
    N.W., Washington, D.C. 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, or to participate 
    if one is requested, must submit a written request to the Assistant 
    Secretary for Import Administration, U.S. Department of Commerce, Room 
    1870, within 30 days of the publication of this notice. 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. 
    Oral presentations will be limited to issues raised in the briefs. If 
    this investigation proceeds normally, we will make our final 
    determination by no later than 135 days after the publication of this 
    notice in the Federal Register.
        This determination is issued and published in accordance with 
    sections 733(d) and 777(i)(1) of the Act.
    
    Joseph A. Spetrini,
    Acting Assistant Secretary for Import Administration .
    [FR Doc. 98-20911 Filed 8-4-98; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
8/5/1998
Published:
08/05/1998
Department:
International Trade Administration
Entry Type:
Notice
Document Number:
98-20911
Dates:
August 5, 1998.
Pages:
41789-41794 (6 pages)
Docket Numbers:
A-533-813
PDF File:
98-20911.pdf