[Federal Register Volume 60, Number 108 (Tuesday, June 6, 1995)]
[Notices]
[Pages 29824-29826]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13822]



-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE
[A-570-838]


Notice of Preliminary Critical Circumstances Determination: Honey 
From the People's Republic of China (PRC)

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

EFFECTIVE DATE: June 6, 1995.

FOR FURTHER INFORMATION CONTACT: Karla Whalen or David J. Goldberger, 
Office of Antidumping Investigations, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, D.C. 20230; telephone 
(202) 482-6309 and (202) 482-4136, respectively.

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute and to the 
Department's regulations are in reference to the provisions as they 
existed on December 31, 1994.

Preliminary Critical Circumstances Determination

    The Department of Commerce (the Department) published its 
preliminary determination of sales at less-than-fair- value in this 
investigation on March 20, 1995 (60 FR 14725). On April 27, 1995, 
petitioners in this investigation alleged that critical circumstances 
exist with respect to imports of honey from the PRC. In accordance with 
19 CFR 353.16(b)(2)(ii), since this allegation was filed later than 20 
days before the scheduled date of the preliminary determination, we 
must issue our preliminary critical circumstances determination not 
later than 30 days after the allegation was filed.
    Section 733(e)(1) of the Tariff Act of 1930, as amended, provides 
that the Department will determine 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 the 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.

Imputed Knowledge of Dumping

    To determine whether the persons 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 the investigation 
at less-than-fair-value, the Department's practice is to impute 
knowledge of dumping when the estimated margins are of such a magnitude 
that the importer should have reasonably known that dumping exists with 
regard to the subject merchandise. Normally we consider estimated 
margins of 25 percent or greater on sales to unrelated parties and 
margins of 15 percent or greater on sales through related parties to be 
sufficient to impute such knowledge. (See, e.g., Final Determination of 
Sales at Less Than Fair Value: Silicon Metal from China (56 FR 18570, 
April 23, 1991) and Final Determination of Sales at Less Than Fair 
Value: Extruded Rubber Thread from Malaysia (57 FR 38465, August 25, 
1992). In this investigation, we found preliminary dumping margins 
ranging between 127.52 and 157.16 percent. Accordingly, we find that 
the importers either knew, or should have known, that the imports of 
honey were being sold at less-than-fair-value.
    Because we determine that importers of this merchandise knew, or 
should have known, that the merchandise was being sold at less-than-
fair-value, we do not need to address the question of whether there is 
a history of dumping of the subject merchandise.

Massive Imports

    Under 19 CFR 353.16(f) and 353.16(g), we normally consider the 
following to determine whether imports have been massive over a 
relatively short period of time: 1) volume and value of the imports; 2) 
seasonal trends; and 3) the share of domestic consumption accounted for 
by the imports.
    When examining volume and value data, the Department normally 
compares the export volume for equal periods immediately preceding and 
following the filing of the petition (the ``pre-filing period'' and the 
``post-filing period''). Under 19 CFR 353.16(f)(2), unless the imports 
in the post-filing period have increased by at least 15 percent over 
the imports during the pre-filing period, we will not consider the 
imports to have been ``massive.''
    Because a determination of critical circumstances should be based 
on [[Page 29825]] company-specific shipment information (See, e.g., 
Final Determination of Sales at Less-Than-Fair-Value: Certain Hot 
Rolled Carbon Steel Flat Products, Certain Cold Rolled Carbon Steel 
Flat Products, and Certain Cut-to-Length Carbon Steel Plate from 
Belgium, 58 FR 37083 (July 9, 1993)), we requested shipment information 
from the four companies for which we calculated preliminary margins 
(See, Preliminary Determination of Sales at Less-Than-Fair-Value: Honey 
From the People's Republic of China (60 FR 14725, March 20, 1995)). 
These four companies, (1) Kunshan Xinlong Foods, Ltd. (Xinlong); (2) 
Jiangsu Native Produce Import and Export (Jiangsu); (3) Jiangxi Native 
Produce Import and Export (Jiangxi); and (4) Zhejiang Native Produce & 
Animal By-product Import and Export (Zhejiang), provided shipment 
information for the period from January, 1993 through April 1995. 
Pursuant to 19 CFR 353.16(g), in making a critical circumstances 
determination, the Department normally considers the period beginning 
on the first day of the month of the initiation and ending at least 
three months later. The Department considers this period because it is 
the period immediately prior to a preliminary determination in which 
exporters of the subject merchandise could take advantage of the 
knowledge of the dumping investigation to increase exports to the 
United States without being subject to antidumping duties (see, e.g., 
Final Determination of Sales at Less Than Fair Value of Certain 
Internal-Combustion, Industrial Forklift Trucks from Japan (53 FR 
12552, April 15, 1988)). For purposes of this preliminary determination 
of critical circumstances, we are using as our comparison period five 
months prior to and five months subsequent to the filing of the 
petition in this investigation. As the petition was filed in the first 
half of October 1994, per Department practice, this month is considered 
to be part of the ``post-petition'' period. Thus, the Department 
analyzed the company specific shipment information for the pre-petition 
period, May 1994 through September 1994, and the post-petition period, 
October 1994 through February 1995.
    The data we received indicates that Xinlong, Jiangxi, and 
Zhejiang's shipment of honey to the U.S. decreased over the relevant 
time period and the increase in Jiangsu's shipments exceeded 15 
percent.

Other Factors
    Our analysis pursuant to 19 CFR 353.16(f)(1)(ii) indicated that 
seasonal trends were not a significant factor explaining the increase 
in Jiangsu's shipments. We were unable to consider the share of U.S. 
consumption represented by imports from Jiangsu, pursuant to 
353.16(f)(1)(iii), because we have insufficient information with regard 
to Jiangsu's specific market share of domestic consumption.
    Jiangsu argues that the increase in its shipments during the post-
petition period was a result of the new Chinese export quota system 
which became effective in April 1994. Specifically, Jiangsu claims that 
it was forced to ship the remainder of its honey quota by year-end 
1994, or it would forfeit the right to export its unused quota. As a 
result of these circumstances, Jiangsu's shipments worldwide increased 
in November and December 1994. Jiangsu argues that because its 
shipments increased in the post-petition period for reasons other than 
an intent to import large amounts prior to suspension of liquidation, 
the Department should find that these do not constitute ``massive'' 
imports for purposes of critical circumstances. We believe the evidence 
on the record is insufficient to support the legal and factual bases 
for this argument, but may reconsider this argument based on 
verification findings.

Conclusion

    We find that critical circumstances do not exist for Xinglong, 
Jiangxi, and Zhejiang because they did not have massive imports over a 
relatively short period of time. For Jiangsu, we find that critical 
circumstances do exist due to: (1) Imputed knowledge of dumping; and 
(2) Massive imports as evidenced by a significant increase in shipments 
between the pre- and post-petition comparison period. For the exporters 
whose responses were not analyzed,1 we find that critical 
circumstances do not exist for the following reason. Due to the large 
number of responding companies in this case, the Department selected 
only four exporting companies and their respective producers to analyze 
in the investigation. The Department does not believe it is appropriate 
to penalize respondents whose individual data have not been analyzed 
due to the Department's own administrative constraints. Furthermore, 
based on an aggregate analysis of the four respondents from which we 
requested shipment data, we conclude that the increase in shipment data 
for the pre- and post-petition comparison periods is not larger than 15 
percent. For all PRC companies which did not respond to the 
Department's questionnaire, we have made the determination, as BIA, 
that ``massive'' imports exist, and we therefore find that critical 
circumstances do exist for all PRC firms not otherwise named in this 
notice.

    \1\ Heilongjiang Native Produce and Animal By-product Import and 
Export
    Inner Mongolia Native Produce and Animal By-product
    Chang Cheng Industrial Co. Ltd.
    Shaanxi Native Produce Import and Export
    Kunshan Foreign Trade Co.
    China (TUHSU) Super Food Import and Export
    Hubei Native Produce Import and Export
    Tianjin Native Produce Import and Export
    Chanting Native Produce Import and Export
    Qinghai Cereals and Oils Import and Export
    Shanghai Native Produce Import and Export
    Guangxi Cereals, Oils and Foodstuffs Import and Export 
Corporation
    Sichuan Native Produce Import and Export
    China (TUHSU) Flavors and Fragrances Import and Export
    Shandong Cereals and Oils Import and Export
    Ningbo Native Produce Import and Export
    Anhui Cereals & Oils Import and Export
    Jiangsu Sweet Foods, Ltd.
    Hebei Native Produce Import and Export
    Anhui Medicines and Health Produce Import and Export
    Xian Native Produce and Animal By-product Import and Export 
Liaoning Native Produce Import and Export
    Liaoning Native Produce Import and Export
    Anhui Native Produce Import and Export
    Henan Native Produce Import and Export
---------------------------------------------------------------------------

Final Critical Circumstances Determination

    We will make a final determination and address any comments 
concerning critical circumstances when we make our final determination 
in this investigation by August 2, 1995.

Suspension of Liquidation

    In accordance with section 733(e)(2) of the Act, we are directing 
the Customs Service to suspend liquidation of all entries of honey from 
Jiangsu Native Produce Import and Export of the PRC and all other PRC 
companies not specifically named above that are entered, or withdrawn 
from warehouse, for consumption on or after December 20, 1994 (i.e., 90 
days prior to the date of publication of our preliminary determination 
in the Federal Register). The Customs Service shall require a cash 
deposit or posting of a bond equal to the estimated preliminary dumping 
margins, as shown below. This suspension of liquidation will remain in 
effect until further notice.

------------------------------------------------------------------------
                                                                Average 
               Producer/manufacturer/exporter                   margin  
                                                              percentage
------------------------------------------------------------------------
Jiangsu Native Produce Import and Export....................      127.52
Kunshan Xinlong Food, Ltd...................................    *146.37 
[[Page 29826]]
                                                                        
Jiangxi Native Produce Import and Export....................     *131.86
Zhejiang Native Produce & Animal By-product Import and                  
 Export.....................................................     *131.86
All PRC.....................................................     157.16 
------------------------------------------------------------------------
The asterisk indicates the rate for continuing the suspension of        
  liquidation for those exporters found preliminarily to have negative  
  critical circumstances.                                               

ITC Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of our determination.
Public Comment

    Since this preliminary critical circumstances determination is 
being made after the due date for public comment on our preliminary 
determination of sales at less than fair value in this case, we will 
accept written comments on this preliminary determination of critical 
circumstances until the date in which case briefs are to be filed.
    This determination is published pursuant to section 733(f) of the 
Act.

    Dated: May 30, 1995.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 95-13822 Filed 6-5-95; 8:45 am]
BILLING CODE 3510-DS-P