[Federal Register Volume 59, Number 209 (Monday, October 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26894]


[[Page Unknown]]

[Federal Register: October 31, 1994]


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DEPARTMENT OF COMMERCE
[A-570-838]

 

Initiation of Antidumping Duty Investigation: Honey From the 
People's Republic of China

agency: Import Administration, International Trade Administration, 
Department of Commerce.

effective date: October 31, 1994.

for further information contact: David J. Goldberger or Louis Apple, 
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) 482-4136 or (202) 482-1769, respectively.

Initiation of Investigation

The Petition

    On October 3, 1994, we received a petition filed in proper form by 
members of the American Beekeeping Federation and the American Honey 
Producers Association. In accordance with 19 CFR 353.12, petitioners 
allege that honey 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 
within the meaning of section 731 of the Tariff Act of 1930, as amended 
(the Act), and that these imports materially injure, or threaten 
material injury to, a United States industry.
    Petitioners have stated that they have standing to file the 
petition because they are interested parties, as defined under section 
771(9)(C) of the Act, and because the petition is filed on behalf of a 
significant portion of the U.S. industry producing the product subject 
to this investigation. If any interested party, as described under 
paragraphs (C), (D), (E), or (F) of section 771(9) of the Act, wishes 
to register support for, or opposition to this petition, it should file 
a written notification with the Assistant Secretary for Import 
Administration.

Scope of Investigation

    The products covered by this investigation are natural honey, 
artificial honey containing more than 50 percent natural honey by 
weight, and preparations of natural honey containing more than 50 
percent natural honey by weight. The subject products include all 
grades and colors of honey whether in liquid, creamed, comb, cut comb, 
or chunk form, and whether packaged for retail or in bulk form.
    The subject merchandise is currently classifiable under subheadings 
0409.00.00, 1702.90.50, 2106.90.60, 2106.90.61, 2106.90.65, and 
2106.90.69 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.

United States Price and Foreign Market Value

United States Price

    Petitioners based United States price (USP) on contract prices from 
a U.S. importer of the subject merchandise from the PRC. In calculating 
USP, petitioners deducted amounts for the following: U.S. duties, ocean 
freight, marine insurance, U.S. harbor maintenance fee, U.S. 
merchandise processing fee, and the Honey Board fee (a U.S. Department 
of Agriculture assessment on honey or honey used in honey products in 
the United States).

Foreign Market Value

A. Non-Market Economy Determination

    Petitioners contend that the PRC is a non-market economy (NME) 
country within the meaning of section 771(18)(A) of the Act. The 
Department has determined in previous investigations that the PRC is an 
NME, and the presumption of NME status continues for purposes of 
initiation of this investigation. See e.g., Final Determination of 
Sales at Less than Fair Value: Certain Paper Clips from the PRC, 59 FR 
51168 (October 7, 1994) (Paper Clips).
    In accordance with section 773(c) of the Act, foreign market value 
in NME cases is based on NME producers' factors of production, valued 
in a market economy country. Consistent with Department practice (see 
Initiation of Antidumping Duty Investigation: Glycine from the PRC, 59 
FR 38435, July 28, 1994), absent evidence that the PRC government 
determines which of its beekeepers/processors shall produce for export 
to the United States, we intend, for purposes of this investigation, to 
base FMV only on those beekeepers/processors that produced honey sold 
to the United States during the period of investigation (POI).
    In the course of this investigation, parties will have the 
opportunity to address this NME determination and provide relevant 
information and argument related to the issues of the PRC's NME status 
and granting of separates rates to individual exporters.

B. FMV Calculations

    Petitioners calculated FMV on the basis of the valuation of factors 
of production derived from information developed by a market researcher 
in India about production processes in India, which petitioners claim 
are similar to the PRC. Petitioners valued these factors, where 
possible, based on publicly available published information from India 
(see foreign market research report submitted by petitioners on October 
14, 1994, at Exhibit 1). Petitioners argue that India is a country at a 
comparable level of economic development to the PRC and India is a 
significant producer of comparable merchandise, thus meeting the 
requirements of section 773(c)(4) of the Act. For purposes of this 
initiation, we have accepted India as an appropriate surrogate country 
selection.
    Where Indian values were not available, petitioners valued the 
factors of production using the U.S. industry's costs, where 
petitioners determined that this provided a reasonable basis upon which 
to value such factors.
    Petitioners provided FMV calculations based on data associated with 
two species of bee known to produce honey in the PRC, i.e., the low-
yield A. cerana (eastern) honeybee and the high-yield A. mellifera 
(western) honeybee. Petitioners have provided public information which 
indicates that each species accounts for approximately one-half of the 
commercial honey-producing colonies in the PRC (see October 14, 1994, 
submission of petitioners, at p. 8). In accordance with 19 CFR 
353.52(a)(2), petitioners' FMV for the two species consisted of the sum 
of beekeeping costs, processing costs, profit, and packing, and the 
factors were valued as follows:
     For variable and fixed costs associated with beekeeping 
operations, as well as processing costs, petitioners used Indian 
factors of production based on their foreign market research.
     For labor costs associated with beekeeping operations, 
petitioners relied on Indian factors based on their foreign market 
research. Petitioner valued labor costs on the basis of publicly 
available Indian agricultural wage rates.
     Petitioners added amounts for transportation and land-
lease costs associated with high-yield western honeybee beekeeping 
operations, and valued these based on a U.S. producer's cost-per-pound.
     For profit, petitioners used the profit margins for 
beekeeping operations contained in their foreign market research, and 
the statutory minimum of eight percent of the cost of production for 
processing operations.
     Petitioners added an amount for packing in steel drums 
based on a U.S. producer's cost per drum.
    Based on our analysis of the petition and petitioners' subsequent 
amendments, we have made certain adjustments to petitioners' FMV 
calculations as follows:
     We disallowed additional transportation and land-leasing 
expenses for western honeybee beekeeping because they are based on U.S. 
costs, and are either inadequately supported or are based on incomplete 
methodology (i.e., with regard to transportation, petitioners have 
failed to take into account the increase in yield associated with 
migratory beekeeping).
     We adjusted beekeeping costs to offset the costs 
associated with beekeeping services and products other than honey.
     We valued packing costs associated with steel drums using 
Indian import statistics rather than U.S. costs.
     We have revised the FMV calculation for the eastern bee 
using a higher yield, as derived from the supporting data for the 
eastern bee presented in the petitioners' foreign market research.

Fair Value Comparisons

    Based on a comparison of USP and FMV, petitioners' alleged dumping 
margins, as revised by the Department, range from 30.95 to 49.24 
percent.

Initiation of Investigation

    We have examined the petition on honey and have found that the 
petition meets the requirements of section 732(b) of the Act. 
Therefore, we are initiating an antidumping duty investigation to 
determine whether imports of honey from the PRC are being, or are 
likely to be, sold in the United States at less than fair value.

International Trade Commission (ITC) Notification

    Section 732(d) of the Act requires us to notify the ITC of this 
action and we have done so.

Preliminary Determination by the ITC

    The ITC will determine by November 17, 1994, whether there is a 
reasonable indication that an industry in the United States is 
materially injured, or is threatened with material injury, by reason of 
imports of honey from the PRC. A negative ITC determination will result 
in a termination of the investigation; otherwise, the investigation 
will proceed according to statutory and regulatory time limits.
    This notice is published pursuant to section 732(c)(2) of the Act 
and 19 CFR 353.13(b).

    Dated: October 24, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-26894 Filed 10-28-94; 8:45 am]
BILLING CODE 3510-DS-M