[Federal Register Volume 66, Number 193 (Thursday, October 4, 2001)]
[Notices]
[Pages 50608-50611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24921]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-863]


Notice of Final Determination of Sales at Less Than Fair Value; 
Honey From the People's Republic of China

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

ACTION: Notice of Final Determination of Sales at Less Than Fair Value.

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EFFECTIVE DATE: October 4, 2001.

FOR FURTHER INFORMATION CONTACT: Angelica Mendoza (Inner Mongolia and 
Zhejiang) at (202) 482-3019, Fred Baker (Kunshan) at (202) 482-2924, 
Charles Rast at (202) 482-1324 or Donna Kinsella at (202) 482-0194; 
Antidumping and Countervailing Duty Enforcement Group III, Office 
Eight, Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230.

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
date of the amendments made to the Tariff Act of 1930 (the Act) by the 
Uruguay Round Agreements Act. In addition, unless otherwise indicated, 
all citations to the Department of Commerce (Department) regulations 
are to the regulations codified at 19 CFR part 351 (April 2000).

Final Determination

    We determine that honey from the People's Republic of China (PRC) 
is being sold, or is likely to be sold, in the United States at less 
than fair value (LTFV), as provided in section 735 of the Act. The 
estimated margins of sales at LTFV are shown in the ``Suspension of 
Liquidation'' section of this notice.

Case History

    We published in the Federal Register the preliminary determination 
in this investigation on May 11, 2001. See Notice of Preliminary 
Determination of Sales at Less Than Fair Value: Honey from the People's 
Republic of China, 66 FR 24101 (May 11, 2001) (Preliminary 
Determination). Since publication of the preliminary determination, the 
following events have occurred.
    On May 14, 2001, the producers/exporters of subject merchandise 
from the PRC requested that the Department postpone its final 
determination to the fullest extent permitted by the statute and the 
Department's regulations. Additionally, the PRC producers/exporters 
consented to an extension of the period for the imposition of 
provisional measures to the fullest extent permitted, or six months, 
whichever is later. On June 6, 2001, we published in the Federal 
Register a notice of postponement of the final determination and 
extension of provisional measures in this investigation. See Notice of 
Postponement of Final Determinations of Sales at Less Than Fair Value: 
Honey from Argentina and the People's Republic of China and 
Postponement of Final Countervailing Duty Determination: Honey from 
Argentina, 66 FR 30413-02 (June 6, 2001).
    On May 18, 2001, the American Honey Producers Association and the 
Sioux Honey Association (collectively, petitioners) submitted comments 
alleging certain ministerial errors in the Department's preliminary 
determination. On May 21, 2001, respondents submitted comments 
regarding certain alleged ministerial errors in petitioners' May 18, 
2001, proposed corrections to the Preliminary Determination. 
Petitioners commented on respondents' submission on May 23, 2001. On 
August 2, 2001, we published in the Federal Register an amended 
preliminary determination in this investigation. See Notice of Amended 
Preliminary Determination of Sales at

[[Page 50609]]

Less Than Fair Value: Honey from the People's Republic of China, 66 FR 
40191-01 (August 2, 2001).
    The Department conducted verification at The Ministry of Foreign 
Trade and Economic Cooperation (MOFTEC) and the China Chamber of 
Commerce of Importers and Exporters of Foodstuffs, Native Produce and 
Animal By-Products (the Chamber) from May 28, 2001 through May 29, 2001 
in Beijing, PRC. See ``Verification Meeting at MOFTEC and the Chamber 
in the Antidumping Duty Investigation of Honey from the PRC,'' July 27, 
2001. The Department also conducted verification of information 
submitted by Inner Mongolia Autonomous Region Native Produce and Animal 
By-Products Import and Export Corporation (Inner Mongolia), Kunshan 
Foreign Trading Company (Kunshan), and Zhejiang Native Produce and 
Animal By-Products Import and Export Corporation (Zhejiang) from May 
30, 2001 through June 9, 2001, at each respondent's respective 
administrative headquarters and suppliers' facilities in the PRC. See 
Memorandum For the File; ``Verification of U.S. Sales and Factors of 
Production--Inner Mongolia and its affiliated processing factory Inner 
Mongolia Sheng Li Food Company (Sheng Li);'' ``Verification of U.S. 
Sales and Factors of Production--Zhejiang and Hangzhou Green Forever 
Apiculture (Group) Co. (Hangzhou);'' and, ``Verification of U.S. Sales 
and Factors of Production--Kunshan and Kunshan Xinlong Food Co. Ltd. 
(Xinlong),'' July 27, 2001 (collectively, Sales Verification Reports). 
Public versions of these, and all other Departmental memoranda referred 
to herein, are on file in the Central Records Unit, room B-099 of the 
main Commerce building.
    On June 7, 2001, petitioners requested a public hearing. 
Respondents requested a public hearing on June 11, 2001.
    On July 3, 2001, petitioners and respondents submitted additional 
publicly available information to value the factors of production for 
honey exported from the PRC.
    On July 3, 2001, petitioners requested that the Department solicit 
updated, exporter-specific information for purposes of determining 
critical circumstances for Inner Mongolia, Kunshan, Shanghai Eswell, 
Anhui, and Henan. Respondents commented on petitioners' submission on 
July 12, 2001. Petitioners filed additional comments on July 13, 2001 
and August 1, 2001. Respondents filed additional comments on July 17, 
2001. On August 9, 2001, we requested additional shipment information 
from respondents and from cooperative exporters with respect to their 
exports of honey to the United States. Parties submitted the requested 
information on August 24, 2001.
    On August 8, 2001, petitioners and respondents (Inner Mongolia, 
Kunshan, and Zhejiang) filed case briefs. We received rebuttal briefs 
from all parties on August 14, 2001. A public hearing in this 
investigation was held on August 27, 2001.
    Although the deadline for this determination was originally 
September 24, 2001, in light of the events of September 11, 2001 and 
the subsequent closure of the Federal Government for reasons of 
security, the timeframe for issuing this determination has been 
extended by two days.

Period of Investigation

    The period of investigation (POI) is January 1, 2000 through June 
30, 2000.

Non-Market Economy

    The Department has treated the PRC as a non-market economy (NME) 
country in all its past antidumping investigations. See Final 
Determination of Sales at Less Than Fair Value: Bulk Aspirin from the 
PRC, 65 FR 33805 (May 25, 2000), and Final Determination of Sales at 
Less Than Fair Value: Steel Concrete Reinforcing Bars from the PRC, 66 
FR 33522 (June 22, 2001). A designation as an NME country remains in 
effect until it is revoked by the Department. See section 771(18)(C) of 
the Act. The respondents in this investigation have not requested a 
revocation of the PRC's NME status. Therefore, we have continued to 
treat the PRC as an NME in this investigation. For further details, see 
the Department's Preliminary Determination.

Separate Rates

    In our Preliminary Determination, we found that Inner Mongolia, 
Kunshan, Zhejiang, High Hope, Shanghai Eswell, Anhui, and Henan had met 
the criteria for the application of separate antidumping duty rates. We 
have not received any other information since the Preliminary 
Determination which would warrant reconsideration of our separate rates 
determination with respect to the above-listed entities. Therefore, we 
continue to find that Inner Mongolia, Kunshan, Zhejiang, High Hope, 
Shanghai Eswell, Anhui, and Henan should be assigned individual dumping 
margins. For a complete discussion of the Department's determination 
that the respondents are entitled to separate rates, see the 
Preliminary Determination.

Margins for Cooperative Exporters Not Selected

    On December 19, 2000, the Department determined to examine a 
limited number of respondents. In its memo limiting the number of 
respondents, the Department selected Inner Mongolia, Kunshan, and 
Zhejiang as mandatory respondents. High Hope, Shanghai Eswell, Anhui, 
and Henan cooperated in the investigation, filed separate rates 
information and were determined to meet the criteria for separate 
rates. See Memorandum to the File from Richard Weible to Joseph A. 
Spetrini; Selection of Respondents dated December 19, 2000. For the 
reasons set forth in the Preliminary Determination, we have continued 
to calculate a weighted-average margin based on the rates calculated 
for those exporters that were selected to respond in this investigation 
for High Hope, Shanghai Eswell, Anhui, and Henan. Companies receiving 
this rate are identified by name in the ``Suspension of Liquidation'' 
section of this notice.

Use of Facts Available

    In the Preliminary Determination, the Department determined that 
the application of total adverse facts available (AFA) was appropriate 
with respect to the PRC-wide entity, as this entity failed to respond 
to the Department's antidumping questionnaire. As AFA, the Department 
applied a margin rate of 183.80 percent, the highest margin alleged in 
the petition and which the Department was able to corroborate. See 
Memorandum to the File from Donna L. Kinsella; The Use of Facts 
Available for the PRC-wide entity and Corroboration of Secondary 
Information dated May 4, 2001. The interested parties did not object to 
the use of AFA for the PRC-wide entity, or to the Department's choice 
of facts available, and no new facts were submitted which would cause 
the Department to revisit this decision. Therefore, for the reasons set 
out in the preliminary determination, we have continued to use the 
highest margin alleged in the petition for the purposes of this final 
determination notice.]

Surrogate Country

    For purposes of the final determination, we find that India remains 
the appropriate primary surrogate country for the PRC. For further 
discussion and analysis regarding the surrogate country selection for 
the PRC, see the Department's Preliminary Determination.

[[Page 50610]]

Critical Circumstances

    We determine that critical circumstances exist for imports of honey 
from High Hope, Kunshan, Zhejiang, and the PRC-wide entity, in 
accordance with section 735(a)(3) of the Act. Because we did not find 
that massive imports, within the meaning of 19 CFR 351.206(h), exist 
for imports from Inner Mongolia, Shanghai Eswell, Anhui, and Henan, we 
determine that critical circumstances do not exist for imports of honey 
exported by these entities. For further discussion of our determination 
and analysis of critical circumstances, see Memo to Richard Weible 
regarding Final Affirmative and Negative Determinations of Critical 
Circumstances, September 26, 2001 and Comment 2 of the Decision 
Memorandum, which is on file in room B-099 and available on the World 
Wide Web at www.ia.ita.doc.gov/frn.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the ``Issues and Decision 
Memorandum'' (Decision Memorandum) from Joseph A. Spetrini, Deputy 
Assistant Secretary, AD/CVD Enforcement Group III, to Faryar Shirzad, 
Assistant Secretary for Import Administration, dated September 26, 
2001, which is hereby adopted by this notice. A list of the issues 
which parties have raised and to which we have responded, all of which 
are in the Decision Memorandum, is attached to this notice as an 
Appendix. Parties can find a complete discussion of all issues raised 
in this review and the corresponding recommendations in this public 
memorandum which is on file in room B-099. In addition, a complete 
version of the Decision Memorandum can be accessed directly on the 
World Wide Web at www.ia.ita.doc.gov/frn. The paper copy and electronic 
version of the Decision Memorandum are identical in content.

Scope of Investigation

    For purposes of this investigation, the products covered are 
natural honey, artificial honey containing more than 50 percent natural 
honey by weight, preparations of natural honey containing more than 50 
percent natural honey by weight, and flavored honey. The subject 
merchandise includes 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 merchandise subject to this investigation is currently 
classifiable under subheadings 0409.00.00, 1702.90.90, and 2106.90.99 
of the harmonized tariff schedule of the United States (HTSUS). 
Although the HTSUS subheadings are provided for convenience and U.S. 
Customs Service (Customs) purposes, the Department's written 
description of the merchandise under investigation is dispositive.

Changes Since the Preliminary Determination

    Based on our analysis of comments received and findings at 
verification, we have made the following changes in the margin 
calculations: (1) Based factory overhead, selling and general 
administrative expenses, and profit ratios on the adjusted 1999-2000 
financial statements of the Mahabaleshwar Honey Producers Cooperative 
Society, Ltd.; (2) valued scrap honey, a by-product offset, using an 
Indian surrogate value for inedible molasses; (3) valued energy inputs 
(i.e., coal and electricity) using Indian surrogate values as reported 
by the International Energy Agency; (4) used Hangzhou's verified raw 
honey consumption in valuing raw honey; (5) used Hangzhou's and Sheng 
Li's verified water consumption in valuing water; (6) used Hangzhou's 
and Sheng Li's verified electricity consumption in valuing electricity; 
(7) revised our cost calculation for iron drums used to pack subject 
merchandise; (8) used the correct wholesale price index to value inland 
water transportation costs incurred by Kunshan; (9) deleted the 
adjustment to Inner Mongolia's freight rate for inflation, because the 
value is contemporaneous with the POI; (10) used Hubei Yangzijiang 
Apiculture Co. Ltd.''s (Hubei) correct by-product consumption figure; 
(11) valued water costs incurred by Hubei and Hangzhou; (12) deleted 
the adjustment to Zhejiang's and Inner Mongolia's labor rates for 
inflation; (13) used the corrected inland freight rates for Kunshan's 
shipments greater than 100 kilometers; (14) revised the calculation of 
weighted-average of Hubei's and Hangzhou's normal value; (15) revised 
the calculation of beeswax for Hubei and Hangzhou; and (16) used 
Xinlong's inland freight distance for drums and coal as verified. These 
changes are described in greater detail in various sections of the 
Decision Memorandum, accessible in room B-099 and on the Web at 
www.ia.ita.doc.gov/frn.

Suspension of Liquidation

    In accordance with section 735(c)(4)(B) of the Act, for Zhejiang 
and Kunshan, the Department will direct the Customs Service to suspend 
liquidation of all unliquidated entries of subject merchandise from the 
PRC that are entered, or withdrawn from warehouse, for consumption on 
or after February 10, 2001, the date 90 days prior to the date of 
publication of the Preliminary Determination. With respect to High Hope 
and the PRC-wide entity, in accordance with section 735(c)(4)(A) of the 
Act, the Department will instruct the Customs to continue to suspend 
liquidation of all entries of subject merchandise from the PRC that are 
entered, or withdrawn from warehouse, for consumption on or after 
February 10, 2001. For the remaining companies (i.e., Inner Mongolia, 
Shanghai Eswell, Anhui, and Henan), we are instructing Customs to 
continue to suspend liquidation of all entries of honey from the PRC 
that are entered, or withdrawn from warehouse, for consumption on or 
after May 11, 2001, the date of publication of the Preliminary 
Determination. The Customs Service shall continue to require a cash 
deposit or the posting of a bond based on the estimated weighted-
average dumping margins shown below. The suspension of liquidation 
instructions will remain in effect until further notice.
    We determine that the following weighted-average dumping margins 
and critical circumstances exist for the period January 1, 2000 through 
June 30, 2000:

------------------------------------------------------------------------
                                        Margin
       Exporter/manufacturer          (percent)   Critical circumstances
------------------------------------------------------------------------
Inner Mongolia.....................        57.13  No.
Kunshan............................        49.75  Yes.
Zhejiang...........................        25.88  Yes.
High Hope..........................        45.51  Yes.
Shanghai Eswell....................        45.51  No.
Anhui..............................        45.51  No.
Henan..............................        45.51  No.
PRC-wide Entity....................       183.80  Yes.
------------------------------------------------------------------------

ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (ITC) of our determination. Because our 
final determination is affirmative, the ITC will determine, within 45 
days, whether these imports are causing material injury, or threat of 
material injury, to an industry in the United States. If the ITC 
determines that material injury or threat of injury does not exist, the 
proceeding will be terminated and all securities posted will be 
refunded or canceled. If the ITC determines that such injury does 
exist, the Department will issue an antidumping duty order directing 
Customs officials to assess antidumping duties on all imports of the 
subject merchandise entered, or withdrawn

[[Page 50611]]

from warehouse for consumption on or after the effective date of the 
suspension of liquidation.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: September 26, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix I--Issues in Decision Memo

Comments and Responses

General Issues

1. Cooperation of PRC Producers/Exporters and Compliance Under the 
Suspension Agreement
2. Critical Circumstances
3. Factory Overhead, SG&A, and Profit
4. Surrogate Value for Raw Honey
5. Surrogate Value for Beeswax
6. Surrogate Value for Scrap Honey
7. Surrogate Value for Drums
8. Surrogate Value for Energy
9. Labor Hours

Company-Specific Issues

Zhejiang

10. Zhejiang Willing
11. Raw Honey
12. Water
13. Electricity

Inner Mongolia

14. Movement Expenses

Kunshan

15. Inland Insurance
16. Electricity

[FR Doc. 01-24921 Filed 10-3-01; 8:45 am]
BILLING CODE 3510-DS-P