[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