[Federal Register Volume 66, Number 198 (Friday, October 12, 2001)]
[Notices]
[Pages 52100-52107]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-25709]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-848]


Freshwater Crawfish Tail Meat From the People's Republic of 
China: Notice of Preliminary Results of Antidumping Duty Administrative 
Review and Preliminary Partial Rescission of Antidumping Duty 
Administrative Review

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

SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review of the antidumping duty order on freshwater 
crawfish tail meat from the People's Republic of China (PRC) in 
response to requests from the Crawfish Processors Alliance (petitioner) 
and the Louisiana Department of Agriculture & Forestry and Bob Odom, 
Commissioner; from respondents Fujian Pelagic Fishery Group Co., 
Qingdao Zhengri Seafood Company, Ltd., and Yancheng Yaou Seafood Co., 
Ltd.; and from importers Bo Asia, Inc. and Hontex Enterprises, Inc. (d/
b/a Louisiana Packing Company). The period of review is from September 
1, 1999 through August 31, 2000.
    We preliminarily determine that sales have been made below normal 
value (NV). The preliminary results are listed below in the section 
titled ``Preliminary Results of Review.'' If these preliminary results 
are adopted in our final results, we will instruct the U.S. Customs 
Service to assess antidumping duties based on the difference between 
the export price (EP) or constructed export price (CEP), as applicable, 
and NV. Interested parties are invited to comment on these preliminary 
results. (See the ``Preliminary Results of Review'' section of this 
notice.)

EFFECTIVE DATE: October 12, 2001.

FOR FURTHER INFORMATION CONTACT: Doug Campau or Maureen Flannery, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone: (202) 482-1395 or (202) 482-3020, 
respectively.

The Applicable Statute

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (the Act) are 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's regulations are to 19 CFR 
part 351 (2000).

Background

    On September 15, 1997, the Department published in the Federal 
Register an antidumping duty order on freshwater crawfish tail meat 
from the PRC. See Notice of Amendment to Final Determination of Sales 
at Less Than Fair Value and Antidumping Duty Order: Freshwater Crawfish 
Tail Meat From the People's Republic of China, 62 FR 48218 (September 
15, 1997). On September 26, 2000, in accordance with 19 CFR 
351.213(b)(3), the Department received a request from importer Bo Asia, 
Inc. to conduct an administrative review of Huaiyin Foreign Trade 
Corporation, Huaiyin Foreign Trade Corporation 30 (Huaiyin 
30), and Yan Cheng Foreign Trade (YFT).
    On September 29, 2000, in accordance with 19 CFR 351.213(b)(1), the 
Department received a request from the petitioner to conduct an 
administrative review of Anhui Chaohu Daxin Meat Poultry Co, Ltd.; 
Anhui Cereals, Oils & Foodstuffs; Anhui Provincial Aquatic Co.; Baoluu 
Waterstuff Co., Ltd.; Baoying Freezing Plant; Baoying County Freezing 
Plant; Beijing Farenco; Ever Concord; Feidong Freezing Plant; Fubao 
Aquatic Foodstuff Co., Ltd;. Fujian Hualong Aquatic Trade Development 
Co. Lianjian Seafood Processing Plant; Fujian Pelagic Fishery Group Co. 
(Fujian Pelagic); Fujian Hualong Aquatic Trade Development; Funing 
County Frozen Food; Guangzhou Xinye Plastic Products, Hengji Trading 
Co., Ltd.; Hexing Foodstuff Co., Ltd.; Hongze County Laoshan Danxian 
Freezing Factory; Hongze Lake Green Food Co.,
Ltd.; Hongze County Aquatic Freezing Factory; Hua Yin; Huai Yin; 
Huaiyin County Freezing Factory; Huaiyin Foreign Economic Relations and 
Trade Committee; Huaiyin Foreign Trade Corp. Shunda Branch; Huaiyin 
Foreign Trade Corporation; Huaiyin Foreign Trading; Huaiyin Foreign 
Trade Corporation (3); Huaiyin Foreign Trade Corporation (5) (Huaiyin 
5); Huaiyin Foreign Trade Corporation (30) (Huaiyin 30); Huaiyin 
Foreign Trade; Huaiyin Luky Trade Corp.; Huaiyin Shunda Economic and 
Technology Trading Co.; JAS Forwarding; Jiangsu Zhenfeng Group 
Foodstuff; Jiangsu Zhenfeng Group; Jiangsu Lukang Foodstuffs; Jin
Hu Foreign Trading; Jinghu Aquatic Foodstuff Processing Plant; Jinpeng 
Agriculture and By-Product Development Co.; Laoshan Brother Freezing 
Plant; Mr. Edward Lee; Lianyungang Haiwang Aquatic Products Co., Ltd.; 
Liaoning Limeng Exports & Imports; Mr. Lin Zhong Nan; Mr. Ma Guo Zhong; 
Nantong Shengfa Frozen Food Co., Ltd. (Nantong Shengfa); Nantong Delu 
Aquatic Food Co., Ltd.; Neptune International; Ningbo Nanlian Frozen 
Foods Co., Ltd. (Ningbo Nanlian); Pacific Coast Fisheries Corp.; Panwin 
Logistics; Qidong Baoluu Aquatic Food Co., Ltd.; Qingdao Rirong 
Foodstuff Co., Ltd. aka Qingdao Rirong Foodstuffs (Qingdao Rirong); 
Qingdao Shun Hang Forwarding; Qingdao Zhengri Seafood Co., Ltd., aka 
Qingdao Zhengri Seafoods (Qingdao Zhengri); Qingshan Foodstuff Co., 
Ltd.; Rich Shipping; Seatrade International, aka
Seatrade Enter.; Shanghai Guangxum Trading; Shanghai Zhongjian 
International Trading; Shantou SEZ Yangfeng Marine Products Co. 
(Yangfeng Marine); Suqian Foreign Trade Corp., aka Suqian Foreign 
Trading (Suqian FTC); Suyang Shuangyu Foodstuff Co., Ltd.; Toyo 
Warehouse, aka TKK Toyo; Mr. Wei Wei, aka Philip Wei; Mr. Wei Zhang; 
Weishan Fukang Foodstuffs Co., Ltd.; Weishan Jinmuan Foodstuff; Weishan 
Hongfa Lake Foodstuff Co., Ltd., aka Weishan Fongfa Lake Foodstuff; Y & 
Z International, aka Y & Z International Trading; Yancheng Baolong 
Biochemical Products, Co., Ltd.; Yancheng Foreign Trade Corp., aka 
Yancheng Foreign Trading, aka Yang Chen Foreign Trading; Yancheng Fubao 
Aquatic Food Co., Ltd.; Yancheng Haibao Foods; Yancheng Haiteng

[[Page 52101]]

Aquatic Products & Foods Co., Ltd. (Yancheng Haiteng); Yancheng Yao 
Seafoods (Yancheng Seafood); Mr. Yang Yi Xiang; Yangzhou Foreign 
Trading; Yangzhou Lakebest Foods Co., Ltd. (Yangzhou Lakebest); Yiaxian 
No. 2 Freezing Factory; Yundong Aquatic Products Processing Factory; 
Yundong Waterstuff Processing Plant; Zegao Daxin Foodstuff Freezing 
Plant; Mr. Zhang Wei; Zhenfeng Foodstuff Co. and Zhenfeng Group Food 
Co.
    Also on September 29, 2000, in accordance with 19 CFR 351.213(b), 
the Department received a request for an administrative review of 
Nantong Delu Aquatic Food Co. Ltd. (Nantong Delu) from importer Ocean 
Harvest Wholesale Inc. (Ocean Harvest) and Nantong Delu; for an 
administrative review of Ningbo Nanlian from Hontex Enterprises, Inc. 
(d/b/a Louisiana Packing Company); and for an administrative review of 
Fujian Pelagic, Qingdao Zhengri, and Yancheng Yaou-exporters requesting 
review on their own behalf.
    On October 30, 2000, the Department initiated an antidumping duty 
administrative review for this case. See Notice of Initiation of 
Antidumping and Countervailing Duty Administrative Reviews, Requests 
for Revocation in Part and Deferral of Administrative Review, 65 FR 
64662 (October 30, 2000).
    On June 1, 2001, the Department determined that it was not 
practicable to complete the preliminary results of this review within 
the statutory time limit. Consequently, in accordance with section 
751(a)(3)(A) of the Act and section 351.213(h)(2) of the Department's 
regulations, the Department extended the deadline for completion of the 
preliminary results of the administrative review 120 days, to October 
1, 2001. See Notice of Extension of Time Limits for Preliminary Results 
of Administrative Antidumping Review: Freshwater Crawfish Tail Meat 
from the People's Republic of China, 66 FR 31204 (June 11, 2001).

Preliminary Rescission of Administrative Review in Part

    On November 13, 2000, in accordance with 19 CFR 351.213(d)(1), the 
petitioner withdrew its request for administrative review of Anhui 
Chaohu Daxin Meat Poultry Co, Ltd.; Anhui Provincial Aquatic Co.; 
Baoluu Waterstuff Co., Ltd.; Baoying Freezing Plant; Baoying County 
Freezing Plant; Beijing Farenco; Ever Concord; Feidong Freezing Plant; 
Fubao Aquatic Foodstuff Co., Ltd.; Fujian Hualong Aquatic Trade 
Development Co. Lianjian Seafood Processing Plant; Fujian Pelagic 
Fishery Group Co.; Fujian Hualong Aquatic Trade Development; Funing 
County Frozen Food; Guangzhou Xinye Plastic Products; Hengji Trading 
Co., Ltd.; Hexing Foodstuff Co., Ltd.; Hongze County Laoshan Danxian 
Freezing Factory; Hongze Lake Green Food Co., Ltd.; Hongze County 
Aquatic Freezing Factory; Hua Yin; Huai Yin; Huaiyin
County Freezing Factory; Huaiyin Foreign Economic Relations and Trade 
Committee; Huaiyin Foreign Trade Corp. Shunda Branch; Huaiyin Foreign 
Trade Corporation; Huaiyin Foreign Trading; Huaiyin Luky Trade Corp.; 
Huaiyin Shunda Economic and Technology Trading Co.; JAS Forwarding; 
Jiangsu Zhenfeng Group Foodstuff; Jiangsu Zhenfeng Group; Jiangsu 
Lukang Foodstuffs; Jin Hu Foreign Trading; Jinghu Aquatic Foodstuff 
Processing Plant; Jinpeng Agriculture and By-Product Development Co.; 
Laoshan Brother Freezing Plant; Liaoning Limeng Exports & Imports; 
Neptune International; Panwin Logistics; Qidong Baoluu Aquatic Food 
Co., Ltd.; Qingdao Shun Hang Forwarding; Qingshan
Foodstuff Co., Ltd.; Rich Shipping; Seatrade International, aka 
Seatrade Enter.; Shanghai Guangxum Trading; Toyo Warehouse, aka TKK 
Toyo; Weishan Jinmuan Foodstuff; Y & Z International, aka Y & Z 
International Trading; Yancheng Baolong Biochemical Products, Co., 
Ltd.; Yancheng Haibao Foods; Mr. Yang Yi Xiang; Yangzhou Foreign 
Trading; Yiaxian No. 2 Freezing Factory; Yundong Aquatic Products 
Processing Factory; Yundong Waterstuff Processing Plant; Zegao Daxin 
Foodstuff Freezing Plant; Zegao Foodstuff Freezing Plant; Zhenfeng 
Foodstuff Co.; and Zhenfeng Group Food Co.
    On January 22, 2001, in accordance with 19 CFR 351.213(d)(1), Ocean 
Harvest and Nantong Delu withdrew their requests for administrative 
review.
    On January 29, 2001, in accordance with 19 CFR 351.213(d)(1), the 
petitioner withdrew its request for administrative review of Anhui 
Cereals, Oils & Foodstuffs; Fujian Hualong Aquatic Trade Development 
Co.
Lianjian Seafood Processing Plant; Fujian Hualong Aquatic Trade 
Development; Funing County Frozen Food; Guangzhou Xinye Plastic 
Products, Huaiyin Foreign Trade Corporation (1); Huaiyin Foreign Trade 
Corporation (3); Mr. Edward Lee; Lianyungang Haiwang Aquatic Products 
Co., Ltd.; Mr. Lin Zhong Nan; Mr. Ma Guo Zhong; Pacific Coast Fisheries 
Corp.; Shanghai Zhongjian International Trading; Suyang Shuangyu 
Foodstuff Co., Ltd.; Mr. Wei Wei, aka Philip Wei; Mr. Wei Zhang, aka 
Zhang Wei; Weishan Hongfa Lake Foodstuff Co., Ltd., aka Weishan Fongfa 
Lake Foodstuff; Yancheng Fubao Aquatic Food Co., Ltd.; Yancheng Yao 
Seafoods; and Mr. Yang Yi Xiang.
    The aforementioned withdrawals of requests for administrative 
review were all timely, in accordance with 19 CFR 351.213(d)(1). 
Furthermore, no other parties requested review of those companies. 
Consequently, we are preliminarily rescinding the administrative 
reviews of each company for which a request for administrative review 
was withdrawn.
    An analysis of the responses submitted by Yancheng Foreign Trading 
(YFT) on June 12, 2001 and on August 21, 2001 indicates that all sales 
reported for the current period of review (POR) are identical to sales 
reported by YFT and reviewed by the Department in the previous POR 
(September 1, 1998 through August 31, 1999). See YFT's section C 
response of March 23, 2000, Exhibit C-1, and the supplemental response 
of July 7, 2000, Exhibit S-4, placed on the record of this review. A 
comparison of the data fields for the sales reported in this 
administrative review with certain sales documentation submitted in the 
responses cited above indicate that the sales are identical. The sales 
documentation submitted for the current review ties directly into the 
sales listing reported in the previous review. Therefore, evidence on 
the record demonstrates that the sales YFT reported for the current POR 
were already reported and reviewed by the Department during the 
previous POR. Furthermore, in its supplemental response of August 21, 
2001, YFT confirms that the only sales covered by this POR are the ones 
it reported. Since the only sales YFT reported for the current POR were 
already reported and reviewed during the previous POR, we preliminarily 
conclude that no sales were made during the current POR. See Memorandum 
to Barbara E. Tillman through Maureen Flannery from Elfi Blum: 
Freshwater Crawfish Tail Meat from the People's Republic of China 
(PRC); Yancheng Foreign Trade, Ltd. (YFT), formerly Yancheng Foreign 
Trade Corporation (YFTC): Intent to Rescind Administrative Review.
    The Department's regulations at 19 CFR 351.213(d)(3) provide that 
the Department may rescind a review with respect to a company if that 
company made no exports of subject merchandise during the POR. 
Therefore, in accordance with section 351.213(d)(3) of the Department's 
regulations, we are preliminarily rescinding our review of YFT.
    Based on these preliminary rescissions, this administrative review

[[Page 52102]]

now covers the following companies: Huaiyin 30, Ningbo Nanlian/Huaiyin 
5, Qingdao Rirong, Fujian Pelagic, Yancheng Seafood/Qingdao Zhengri, 
Yangfeng Marine, Suquian FTC, Nantong Shengfa, Yancheng Haiteng, and 
Yangzhou Lakebest.

Scope of Review

    The product covered by these reviews is freshwater crawfish tail 
meat, in all its forms (whether washed or with fat on, whether purged 
or unpurged), grades, and sizes; whether frozen, fresh, or chilled; and 
regardless of how it is packed, preserved, or prepared. Excluded from 
the scope of the order are live crawfish and other whole crawfish, 
whether boiled, frozen, fresh, or chilled. Also excluded are saltwater 
crawfish of any type, and parts thereof. Freshwater crawfish tail meat 
is currently classifiable in the Harmonized Tariff Schedule of the 
United States (HTS) under item numbers 1605.40.10.10, 0306.19.00.10 and 
0306.29.00.00. The HTS subheadings are provided for convenience and 
Customs purposes only. The written description of the scope of this 
order is dispositive.

Relationship Between Qingdao Zhengri and Yancheng Seafood

    We determine that Qingdao Zhengri and Yancheng Seafood should be 
treated as a single entity for purposes of this administrative review. 
Qingdao Zhengri and Yancheng Seafood's consolidated supplemental 
response states that Yancheng Seafood negotiates the price with U.S. 
customers on behalf of Qingdao Zhengri, and that Qingdao Zhengri 
receives payment for such sales. The sales for which Qingdao Zhengri 
produced the merchandise account for a significant portion of Qingdao 
Zhengri/Yancheng Seafood's reported U.S. sales. We also note that in 
their response to the Department's questionnaire, the total volume and 
value of sales for both Qingdao Zhengri and Yancheng Seafood were 
consolidated in Yancheng Seafood's section A response. Furthermore, the 
companies submitted a consolidated response to sections C and D of the 
Department's questionnaire, and to the Department's supplemental 
questionnaire for sections A, C, and D. For the reasons cited above, 
the Department is treating these two companies as a single entity for 
these preliminary results.

Relationship Between Ningbo Nanlian and Huaiyin 5

    In the 1997/1998 administrative review, the Department determined 
that the export operations of Ningbo Nanlian and Huaiyin 5 were 
intertwined such that the two companies appeared to be under common 
control and should receive a single antidumping duty rate. See 
Freshwater Crawfish Tail Meat from the People's Republic of China: 
Final Results of Administrative Antidumping Duty and New Shipper 
Reviews, and Final Recission of New Shipper Review, 65 FR 20948 (April 
19, 2000) (Crawfish 1997/1998 Final). Specifically, the Department 
found that the nature of the relationships between Huaiyin 5 and Ningbo 
Nanlian constituted a web of control relationships such that prices and 
exports were subject to significant manipulation. See Memorandum from 
Edward C. Yang to Joseph A. Spetrini:
Relationship of Ningbo Nanlian Frozen Foods Company, Ltd. and Huaiyin 
Foreign Trade Corporation (5), dated April 7, 2000; and Crawfish 1997/
1998 Final and accompanying Issues and Decision Memorandum, at Comments 
13-17, both of which have been placed on the record of this review. 
Ningbo Nanlian and Huaiyin 5 were given a single rate in the 1998/1999 
administrative review as well, as the Department was not provided with 
new information or evidence of circumstances in the 1998/1999 review 
that differed sufficiently from circumstances in the 1997/1998 review 
to warrant any reconsideration of the relationship between Ningbo 
Nanlian and Huaiyin 5.
See Freshwater Crawfish Tail Meat from the People's Republic of China; 
Notice of Final Results of Antidumping Duty Administrative Review and 
New Shipper Reviews, and Final Partial Recission of Antidumping Duty 
Administrative Review, 66 FR 20643 (April 24, 2001) (Crawfish 1998/1999 
Final). On May 22, 2001, Huaiyin 5 submitted a letter to the Department 
stating, in part, that Huaiyin 5 ``is entitled to a separate rate.'' 
However, again the Department has not been provided with new 
information or evidence of circumstances in the current review that 
differ sufficiently from circumstances in the prior reviews to warrant 
any reconsideration of the relationship between Ningbo Nanlian and 
Huaiyin 5.
Furthermore, as noted in the verification report concerning these 
entities, while conducting verification, the Department found evidence 
of a continuing commercial relationship between Ningbo Nanlian and 
Huaiyin 5, as well as evidence of a continuing business relationship 
between Mr. Wei Wei and both Huaiyin 5 and Ningbo Nanlian (by virtue of 
Mr. Wei's dealings with Louisiana Packing Company, which is the U.S. 
owner in the Ningbo Nanlian joint-venture). See the business 
proprietary version of the memorandum entitled Antidumping Review of 
Freshwater Crawfish Tail Meat (tail meat) from the People's Republic of 
China (PRC) (A-570-848):
Sales and Factors Verification Report for Ningbo Nanlian Frozen Foods 
Co., Ltd. and Huaiyin 5, September 28, 2001; see also the Memorandum 
from Edward C. Yang to Joseph A. Spetrini: Relationship of Ningbo 
Nanlian Frozen Foods Company, Ltd. and Huaiyin Foreign Trade 
Corporation (5), dated April 7, 2000. A public version of this 
memorandum is available in the Central Records Unit, Room B-099 of the 
Main Commerce Building. The report discusses Mr. Wei Wei's involvement 
with Ningbo Nanlian and Huaiyin 5, up to and including the 1997-1998 
administrative review period, in detail. Accordingly, we continue to 
conclude that Ningbo Nanlian and Huaiyin 5 should receive a single 
antidumping duty rate for purposes of these preliminary results.

Application of Facts Available

    Section 776(a)(2) of the Act provides that if any interested party: 
(A) Withholds information that has been requested by the Department; 
(B) fails to provide such information in a timely manner or in the form 
or manner requested; (C) significantly impedes an antidumping 
investigation; or (D) provides such information but the information 
cannot be verified, as provided in section 782(i) of the Act, the 
Department shall, subject to section 782(d) of the Act, use the facts 
otherwise available in reaching the applicable determination under this 
title.
    Yangfeng Marine failed to respond to sections C and D of the 
Department's questionnaire. As a result, we were unable to obtain the 
information necessary to conduct a review. Therefore, in accordance 
with section 776(a)(2)(A) of the Act, we are applying facts available 
to Yangfeng Marine. See Silicon Metal from the People's Republic of 
China: Preliminary Results of Antidumping Duty Administrative Review, 
63 FR 37850 (July 14, 1998); and Silicon Metal From the People's 
Republic of China; Final Results of Antidumping Duty Administrative 
Review, 63 FR 37850 (July 14, 1998). Because Yangfeng Marine failed to 
provide sections C and D questionnaire responses on the record, section 
782(d) does not apply. Further, absent these sections, the Department 
cannot calculate export price or normal value, and thus any remaining 
information cannot form the basis for this determination under section 
782(e).

[[Page 52103]]

Therefore, in accordance with section 776(a)(2), we are applying facts 
available to Yangfeng Marine.
    As noted above, we have determined that Qingdao Zhengri and 
Yancheng Seafood should be treated as a single entity. Since Qingdao 
Zhengri did not allow verification of its portion of the consolidated 
response, the Department considers the whole of the consolidated 
response to be unverifiable. See letter from Barbara E. Tillman to 
Yancheng Yaou Seafood Co., Ltd. a.k.a. Asia Europe and Qingdao Zhengri 
Seafood Co., Ltd., dated August 7, 2001. Therefore, in accordance with 
section 776(a)(2)(D) of the Act, we are applying facts available to 
Qingdao Zhengri/Yancheng Seafood.
    Section 776(b) of the Act provides that the Department may apply 
adverse facts available to a respondent when that respondent fails to 
cooperate to the best of its ability. As noted above, in the instant 
administrative review, Yangfeng Marine and Qingdao Zhengri/Yancheng 
Seafood failed to provide complete and/or verifiable responses. With 
respect to Yangfeng Marine, this company failed to provide full section 
C and D questionnaire responses. These responses are necessary for the 
Department to calculate an accurate margin. Without section C and D 
information, the record is devoid of information concerning U.S. sales 
and factors of production. At no time did Yangfeng Marine indicate to 
the Department that it was having difficulties complying with the 
Department's requests for information, nor did it seek assistance from 
the Department. Therefore, we conclude that Yangfeng Marine has failed 
to cooperate in this review.
    With respect to Qingdao Zhengri/Yancheng Seafood, after the 
Department received a letter from Qingdao Zhengri indicating that it 
would not submit to verification, the Department issued Qingdao 
Zhengri/Yancheng Seafood a letter indicating that it would not be 
possible for the Department to verify any part of the companies' 
consolidated response. The letter pointed out that if a company objects 
to verification, the Department will not conduct verification and may 
disregard any or all information submitted by the company in favor of 
the use of the facts available. Qingdao Zhengri/Yancheng Seafood never 
responded to the Department's letter, and made no subsequent efforts to 
contact or arrange verification with the Department. Therefore, we 
determine that these entities did not cooperate by acting to the best 
of their ability in complying with the Department's requests for 
information.
    Based on these findings of lack of cooperation, we preliminarily 
determine that we should apply adverse facts available to Qingdao 
Zhengri/Yancheng Seafood and to Yangfeng Marine. Section 776(b) of the 
Act states that adverse facts available may include information derived 
from the petition, the final determination, a previous administrative 
review, or other information placed on the record. As adverse facts 
available, we are treating these parties as part of the PRC-wide 
entity, and using the rate for Huaiyin 30, 217.09 percent, the highest 
rate in this segment of the proceeding, which is also the highest rate 
from any segment of the proceeding. As we did not rely upon secondary 
information, no corroboration was required under section 776(c) of the 
Act.

Verification

    As provided in section 782(i) of the Act, we conducted a 
verification of the responses of Qingdao Rirong, Ningbo Nanlian, and 
Huaiyin 5. We used standard verification procedures, including on-site 
inspection of the manufacturers' facilities and the examination of 
relevant sales and financial records. Our verification results are 
outlined in the public versions of the verification reports, on file in 
Room B-099 of the Main Commerce Building.

Separate Rates

    Ningbo Nanlian, Huaiyin5, Huaiyin30, Qingdao Rirong, Fujian 
Pelagic, Yancheng Seafood/Qingdao Zhengri, Yangfeng Marine, Yancheng 
Haiteng, Yancheng FTC, Yangzhou Lakebest, Suqian FTC, and Nantong 
Shengfa have requested separate, company-specific rates. In their 
questionnaire responses, the above companies state that they are 
independent legal entities. Ningbo Nanlian, Qingdao Zhengri, Yangzhou 
Lakebest, Yancheng Haiteng, and Nantong Shengfa have furthermore 
reported they are PRC-foreign joint ventures. Pursuant to our findings 
in the ``Application of Facts Available'' section above, Yancheng 
Seafood/Qingdao Zhengri and Yangfeng Marine are not entitled to 
separate rates.
    To establish whether a company operating in a non-market-economy 
(NME) country is sufficiently independent to be entitled to a separate 
rate, the Department analyzes each exporting entity under the test 
established in the Final Determination of Sales at Less Than Fair 
Value: Sparklers from the People's Republic of China, 56 FR 20588 (May 
6, 1991) as amplified by the Final Determination of Sales at Less Than 
Fair Value: Silicon Carbide from the People's Republic of China, 59 FR 
22585 (May 2, 1994). Under this policy, exporters in NMEs are entitled 
to separate, company-specific margins when they can demonstrate an 
absence of government control, both in law and in fact, with respect to 
export activities. Evidence supporting, though not requiring, a finding 
of de jure absence of government control over export activities 
includes:
(1) An absence of restrictive stipulations associated with an 
individual exporter's business and export licenses; (2) any legislative 
enactments decentralizing control of companies; and (3) any other 
formal measures by the government decentralizing control of companies. 
De facto absence of government control over exports is based on four 
factors: (1) Whether each exporter sets its own export prices 
independently of the government and without the approval of a 
government authority; (2) whether each exporter retains the proceeds 
from its sales and makes independent decisions regarding the 
disposition of profits or financing of losses; (3) whether each 
exporter has the authority to negotiate and sign contracts and other 
agreements; and (4) whether each exporter has autonomy from the 
government regarding the selection of management.

De Jure Control

    With respect to the absence of de jure government control over the 
export activities of all the companies reviewed, evidence on the record 
indicates that Ningbo Nanlian/Huaiyin5, Huaiyin30, Qingdao Rirong, 
Fujian Pelagic, Yancheng Haiteng, Yangzhou Lakebest, Suqian FTC, and 
Nantong Shengfa are not controlled by the government. All of the above 
companies submitted evidence of their legal right to set prices 
independent of all government oversight. The business licenses of every 
company indicates that each is permitted to engage in the exportation 
of crawfish. We find no evidence of de jure government control 
restricting any of the reviewed companies from the exportation of 
crawfish.
    In their responses, each of the above companies has stated that no 
export quotas apply to crawfish. Prior verifications have confirmed 
that there are no commodity specific export licenses required and no 
quotas for the seafood category ``Other,'' which includes crawfish, in 
China's Tariff and Non-Tariff Handbook for 1996. In addition, we have 
previously confirmed that crawfish is not on the list of commodities 
with planned quotas in the

[[Page 52104]]

1992 PRC Ministry of Foreign Trade and Economic Cooperation document 
entitled Temporary Provisions for Administration of Export Commodities. 
See Freshwater Crawfish Tail Meat From The People's Republic of China; 
Preliminary Results of New Shipper Review, 64 FR 8543 (February 22, 
1999) and Freshwater Crawfish Tail Meat From the People's Republic of 
China; Final Results of New Shipper Review, 64 FR 27961 (May 24, 1999) 
(Ningbo New Shipper Review
    The following laws, which have been placed on the record of this 
review, indicate a lack of de jure government control over companies 
owned by ``all the people'' and that control over these enterprises has 
been transferred from the government to the enterprises themselves. The 
Administrative Regulations of the People's Republic of China for 
Controlling the Registration of Enterprises as Legal Persons (Legal 
Persons Law), issued on July 13, 1988 by the State Administration for 
Industry and Commerce of the PRC provide that, to qualify as legal 
persons, companies must have the ``ability to bear civil liability 
independently'' and the right to control and manage their businesses. 
These regulations also state that as an independent legal entity, a 
company is responsible for its own profits and losses. See Notice of 
Final Determination of Sales at Less Than Fair Value: Manganese Metal 
from the People's Republic of China, 60 FR 56046 (November 6, 1995). 
Ningbo Nanlian/Huaiyin5, Huiayin30, Fujian Pelagic, and Yangzhou 
Lakebest cited the Legal Persons Law in their responses.
    Ningbo Nanlian/Huaiyin5 and Fujian Pelagic also submitted the 
General Principles of the Civil Law of the People's Republic of China, 
which establishes guidelines regarding the conduct of companies as 
legal entities. Huaiyin5, Huiayin30, and Fujian Pelagic, as independent 
companies under the jurisdiction of local or provincial governments, 
submitted copies of the Regulations for Transformation of Operational 
Mechanism of State-Owned Industrial Enterprises and the Law of the 
People's Republic of China of Industrial Enterprises Owned by the Whole 
People, which state that such enterprises will have autonomy in 
management and carry full responsibility for profits and losses.
    Ningbo Nanlian/Huaiyin5, Huaiyin30, Fujian Pelagic, Qingdao Rirong, 
Yancheng Haiteng, Yangzhou Lakebest, and Suqian FTC provided copies of 
the Foreign Trade Law of the PRC, which identifies the rights and 
responsibilities of business enterprises with foreign investment, 
grants autonomy to foreign trade operators in management decisions, and 
establishes the foreign trade operator's accountability for profits and 
losses. Yancheng Haiteng placed on the record of this review The Sino-
Foreign Equity Joint Venture Law of the PRC, which grants legal 
autonomy and export rights to Sino-foreign equity joint venture 
companies without additional approval from a government entity. 
Yangzhou Lakebest and Nantong Shengfa also cited this law in their 
responses. At verification, we saw that business licenses for Ningbo 
Nanlian/Huaiyin5 and Qingdao Rirong were established in accordance with 
the applicable laws. Therefore, with respect to the absence of de jure 
control over export activity, we determine that all of the above firms 
are independent legal entities.

De Facto Control

    With respect to the absence of de facto control over export 
activities, the information presented indicates that the management of 
Ningbo Nanlian/Huaiyin5, Yancheng Haiteng, Huaiyin30, Fujian Pelagic, 
Yangzhou Lakebest, Suqian FTC, Qingdao Rirong, and Nantong Shengfa are 
responsible for all decisions such as the determination of export 
prices, profit distribution, marketing strategy, and contract 
negotiations. Our analysis indicates that there is no government 
involvement in the daily operations or the selection of management for 
any of these companies. In addition, we have found that these 
respondents' pricing and export strategy decisions are not subject to 
any outside entity's review or approval, and that there are no 
governmental policy directives that affect these decisions.
    There are no restrictions on the use of respondents' revenues or 
profits, including export earnings. Each company's general manager has 
the right to negotiate and enter into contracts, and may delegate this 
authority to employees within the company. There is no evidence that 
this authority is subject to any level of governmental approval. Each 
company has stated that its management is selected by its board of 
directors and/or its employees and that there is no government 
involvement in the selection process. Lastly, decisions made by 
respondents concerning purchases of subject merchandise from other 
suppliers are not subject to government approval. Consequently, because 
evidence on the record, as supported by verification, indicates an 
absence of government control, both in law and in fact, over their 
export activities, we preliminarily determine that these exporters are 
entitled to separate rates.

Huaiyin 5 Name Change

    While on verification, the team discovered that, effective January 
10, 2001, Huaiyin 5's official name changed to Jiangsu Hilong 
International Trading Company, Ltd. However, throughout this notice, 
this company is referred to as Huaiyin 5--the name of this entity 
during the POR, and under which questionnaire responses were submitted.

Normal Value Comparisons

    To determine whether respondents' sales of the subject merchandise 
to the United States were made at prices below NV, we compared their 
United States prices to NV, as described in the ``United States Price'' 
and ``Normal Value'' sections of this notice.

United States Price

    For Ningbo Nanlian/Huaiyin 5 and Yancheng Haiteng, we based United 
States price on CEP in accordance with section 772(b) of the Act, 
because the first sales to unaffiliated purchasers were made after 
importation. We calculated CEP based on packed prices from the U.S. 
affiliate's warehouse to the first unaffiliated purchaser in the United 
States. We made the following deductions from the starting price (gross 
unit price), where applicable: Foreign inland freight, international 
(ocean) freight, U.S. customs duty, brokerage and handling expenses, 
the affiliated reseller's U.S. credit expenses, and the affiliated 
reseller's selling expenses. See sections 772(c) and (d) of the Act. 
Because U.S. customs duty, brokerage and handling expenses, credit 
expenses, and selling expenses are market-economy costs incurred in 
U.S. dollars, we used actual costs rather than surrogate values for 
these deductions to gross unit price.
    For Fujian Pelagic, Huaiyin30, Qingdao Rirong, Suqian FTC, Yangzhou 
Lakebest, and Nantong Shengfa, we based United States price on EP in 
accordance with section 772(a) of the Act, because the first sales to 
unaffiliated purchasers were made prior to importation, and CEP was not 
otherwise warranted by the facts on the record. We calculated EP based 
on packed prices from the exporter to the first unaffiliated purchaser 
in the United States. Where applicable, we deducted foreign inland 
freight, inland insurance, and brokerage and handling expenses in the 
home market from the starting price (gross unit price) in accordance 
with section 772(c) of the Act.

[[Page 52105]]

    The Department has preliminarily determined that Fujian Pelagic's 
sales to Pacific Coast Fishery Corporation (Pacific Coast) should be 
treated as EP sales because the first sales were made to unaffiliated 
purchasers prior to importation in accordance with 772(a) of the Act, 
and CEP was not otherwise warranted by the facts on the record. See 
Memorandum from Matthew Renkey through Maureen Flannery to Barbara E. 
Tillman, Analysis of the Relationship between Fujian Pelagic Fishery 
Group Co. and Pacific Coast Fisheries, dated October 1, 2001. A public 
version of this memorandum is available in the Central Records Unit, 
Room B-099 of the Main Commerce Building.

Normal Value

    For companies located in NME countries, section 773(c)(1) of the 
Act provides that the Department shall determine NV using a factors-of-
production methodology if (1) the merchandise is exported from an NME 
country, and (2) available information does not permit the calculation 
of NV using home-market prices, third-country prices, or constructed 
value under section 773(a) of the Act.
    In every case conducted by the Department involving the PRC, the 
PRC has been treated as an NME country. Pursuant to section 
771(18)(C)(i) of the Act, any determination that a foreign country is 
an NME country shall remain in effect until revoked by the 
administering authority. None of the companies contested such treatment 
in these reviews. Accordingly, we have applied surrogate values to the 
factors of production to determine NV. See Administrative Review of 
Freshwater Crawfish Tail Meat from the People's Republic of China: 
Factor Values Memorandum, October 1, 2001 (Factor Values Memorandum). 
We calculated NV based on factors of production in accordance with 
section 773(c)(4) of the Act and section 351.408(c) of our regulations. 
Consistent with the original investigation and prior administrative 
reviews of this order, we determined that India (1) is comparable to 
the PRC in level of economic development, and (2) is a significant 
producer of comparable merchandise. With the exceptions of the crawfish 
input and by-product, we valued the factors of production using 
publicly available information from India. We adjusted the Indian 
import prices by adding freight expenses to make them delivered prices.
    In the original LTFV investigation and in previous reviews of this 
order, for the raw crawfish input, we used Spanish import statistics 
for live freshwater crawfish imported from Portugal. See Notice of 
Final Determination of Sales at Less Than Fair Value: Freshwater 
Crawfish Tail Meat from the People's Republic of China, 62 FR 41347 
(August 1, 1997), and Crawfish 1997/1998 Final. However, Spanish 
imports of live freshwater crawfish from Portugal have declined 
drastically. From April 1999 through March 2000, the production period 
corresponding in part to the current review period, Spanish imports 
from Portugal were only 17 metric tons, in contrast to the 357 metric 
tons used during the investigation, and 160 metric tons used during the 
1997-98 administrative review. This represents a decline of 95.2 
percent since the period of the LTFV investigation. In addition, unlike 
in other years, Spanish imports from Portugal were heavily weighted 
towards one month. This one month accounted for 71 percent of the total 
volume of imports from Portugal for that year. Small import volumes as 
a whole, and one month accounting for the vast proportion of imports, 
indicate that live freshwater crawfish is no longer a product that is 
regularly traded between Portugal and Spain. Therefore, we searched for 
data reflecting a more substantial volume of trade. For these 
preliminary results, we have used Australian farm gate prices for 
whole, live freshwater crawfish. See Factor Values Memorandum. For a 
complete discussion of our choice of Australian farm gate prices, refer 
to Freshwater Crawfish Tail Meat from the People's Republic of China; 
Notice of Final Results of Antidumping Duty New Shipper Reviews, 66 FR 
45002 (August 27, 2001), and the accompanying memorandum (September 
1999--March 2000 Decision Memo) at Comment 1. This memorandum is on 
file in the Central Records Unit (Room B-099 of the Main Commerce 
Building).
    We valued the factors of production as follows:
    To value whole crawfish, we used the Australian farm gate price for 
freshwater crawfish as reported in Freshwater Crawfish Tail Meat 
(crawfish) from the People's Republic of China (PRC): Meetings 
Regarding the Crawfish Industry in Western Australia, July 31, 2001. 
For further details, refer to the September 1999-March 2000 Decision 
Memo, at Comment 1.
    To value the by-product of shells, we used a September 1999 free-
on-board (FOB) factory price quote for crab and shrimp shells from a 
Canadian seller of crustacean shells and incorporated a 30 percent wet/
dry conversion factor, where shells were sold wet. For further details, 
see Factors Value Memorandum.
    To value coal and electricity, we used data reported as the average 
Indian domestic prices within the categories of ``Steam Coal for 
Industry'' and ``Electricity for Industry,'' published in the 
International Energy Agency's publication, Energy Prices and Taxes, 
First Quarter, 2000. We adjusted the cost of coal to include an amount 
for transportation. For water, we relied upon public information from 
the October 1997 Second Water Utilities Data Book: Asian and Pacific 
Region, published by the Asian Development Bank.
    To achieve comparability of energy and water prices to the factors 
reported for the crawfish processing periods applicable to the 
companies under review, we adjusted these factor values to reflect 
inflation to the applicable crawfish processing season during the POR 
using the Wholesale Price Index (WPI) for India, as published in the 
2001 International Financial Statistics (IFS) by the International 
Monetary Fund (IMF).
    To value packing materials (plastic bags, cardboard boxes and 
adhesive tape), we relied upon Indian import data from the April 1999 
through September 1999 issues of Monthly Statistics of the Foreign 
Trade of India (Monthly Statistics). We adjusted these prices to 
reflect inflation to the crawfish processing season during the POR. We 
adjusted the values of packing materials to include freight costs 
incurred between the supplier and the factory. For transportation 
distances used in the calculation of freight expenses on packing 
materials, we added, to surrogate values from India, a surrogate 
freight cost using the shorter of (a) the distances between the closest 
PRC port and the factory, or (b) the distance between the domestic 
supplier and the factory. See Notice of Final Determination of Sales at 
Less Than Fair Value: Collated Roofing Nails From the People's Republic 
of China, 62 FR 51410 (October 1, 1997) (Roofing Nails).
    To value factory overhead, selling, general, and administrative 
expenses (SG&A) and profit, we calculated simple average rates using 
publicly available financial statements of four Indian seafood 
processing companies, and applied these rates to the calculated cost of 
manufacture. See Factor Values Memorandum.
    For labor, we used the PRC regression-based wage rate at Import 
Administration's home page, Import Library, Expected Wages of Selected 
NME Countries, revised in September 2001. See http://ia.ita.doc.gov/wages/. Because of the variability of wage rates in countries with 
similar per capita

[[Page 52106]]

gross domestic products, section 351.408(c)(3) of the Department's 
regulations requires the use of a regression-based wage rate. The 
source of these wage rate data on the Import Administration's Web site 
is the 2000 Year Book of Labour Statistics, International Labour Office 
(Geneva: 1998), Chapter 5: Wages in Manufacturing.
    We valued movement expenses as follows:
    To value truck freight expenses we used seventeen price quotes from 
six different Indian trucking companies which were used in the Final 
Determination of Sales at Less Than Fair Value: Bulk Aspirin From the 
People's Republic of China, 65 FR 33805 (May 25, 2000). For 
transportation of the subject merchandise, we adjusted the rates to 
reflect inflation to the month of sale of the finished product using 
the WPI for India from the IFS. For transportation of production 
inputs, we adjusted the rate to reflect inflation to the period of 
production.
    To value brokerage and handling in the home market, we used public 
information reported in the antidumping administrative review of 
Certain Stainless Steel Wire Rod From India; Preliminary Results of 
Antidumping Duty Administrative and New Shipper Reviews, 63 FR 48184 
(September 9, 1998) (Stainless Steel Wire Rod from India), and also 
used in the Crawfish 1998/1999 Final. We adjusted the rates to reflect 
inflation to the month of sale using the WPI for India from the IFS.
    We used the average of the foreign brokerage and handling expenses 
reported in the U.S. sales listing of the public questionnaire response 
submitted in the antidumping review of Viraj Group, Ltd. in Stainless 
Steel Wire Rod from India. Charges were reported on a per metric ton 
basis. We adjusted these values to reflect inflation to the month of 
sale using the WPI for India from the IFS. For further discussion, see 
Factor Values Memorandum.

Currency Conversion

    We made currency conversions pursuant to section 351.415 of the 
Department's regulations at the rates certified by the Federal Reserve 
Bank. (See ia.ita.doc.gov/exchange/index.html.)

Preliminary Results of Review

    We preliminarily determine that the following dumping margins 
exist:

------------------------------------------------------------------------
       Manufacturer/exporter           Time period      Margin (percent)
------------------------------------------------------------------------
Ningbo Nanlian/Huaiyin5 (a.k.a.        9/1/99-8/31/00              62.18
 Jiangsu Hilong International
 Trading Company, Ltd.)...........
Yancheng Haiteng..................     9/1/99-8/31/00             102.82
Huaiyin30.........................     9/1/99-8/31/00             217.09
Fujian Pelagic....................     9/1/99-8/31/00             173.60
Yangzhou Lakebest.................     9/1/99-8/31/00              28.88
Suqian FTC........................     9/1/99-8/31/00              26.75
Qingdao Rirong....................     9/1/99-8/31/00               9.40
Nantong Shengfa...................     9/1/99-8/31/00              45.64
PRC-Wide Rate.....................     9/1/99-8/31/00             217.09
------------------------------------------------------------------------

    Parties to the proceeding may request disclosure within 5 days of 
the date of publication of this notice in accordance with 19 CFR 
351.224(b). Any interested party may request a hearing within 30 days 
of publication in accordance with 19 CFR 351.310(c). Interested parties 
may submit case briefs within 30 days of the date of publication of 
this notice in accordance with 19 CFR 351.309(c)(ii). Rebuttal briefs, 
which must be limited to issues raised in the case briefs, may be filed 
not later than 5 days after the due date for submission of case briefs. 
Parties who submit arguments are requested to submit with each argument 
(1) a statement of the issue and (2) a brief summary of the argument. 
Individuals who wish to request a hearing must submit a written request 
within 30 days of the publication of this notice in the Federal 
Register to the Assistant Secretary for Import Administration, U.S. 
Department of Commerce, Room 1870, 14th Street and Constitution Avenue, 
NW., Washington, DC 20230. Requests for a public hearing should 
contain: (1) The party's name, address, and telephone number; (2) the 
number of participants; (3) the reason for attending; and (4) a list of 
the issues to be discussed. Any hearing would normally be held two days 
after the deadline for rebuttal briefs, or the first workday 
thereafter, at the U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230. If a hearing is held, an 
interested party may make an affirmative presentation only on arguments 
included in that party's case brief and may make a rebuttal 
presentation only on arguments included in that party's rebuttal brief. 
Parties should confirm by telephone the time, date, and place of the 
hearing 48 hours before the scheduled time.
    The Department intends to issue the final results of this 
administrative review, which will include the results of its analysis 
of issues raised in the briefs, within 120 days from the date of 
publication of these preliminary results.
    Upon completion of this administrative review, the Department shall 
determine, and the U.S. Customs Service shall assess, antidumping 
duties on all appropriate entries. The Department will issue 
appraisement instructions directly to the U.S. Customs Service upon 
completion of this review. For assessment purposes, we calculated 
importer-specific assessment rates for freshwater crawfish tail meat 
from the PRC. We divided the total dumping margins (calculated as the 
difference between NV and EP) for each importer by the total quantity 
of subject merchandise sold to that importer during the POR. Upon the 
completion of this review, we will direct Customs to assess the 
resulting quantity-based rates against the weight in kilograms of each 
entry of the subject merchandise by the importer during the POR. (See 
Memorandum to Barbara E. Tillman through Maureen Flannery, from Mark 
Hoadley: Collection of Cash Deposits and Assessment of Duties on 
Freshwater Crawfish from the PRC, dated August 27, 2001). A public 
version of this memorandum is available in th Central Records Unit, 
Room B-099 of the Main Commerce Building.
    The following deposit rates will be effective upon publication of 
the final results of this administrative review for all shipments of 
freshwater crawfish tail meat from the PRC entered, or withdrawn from 
warehouse, for consumption on or after the publication date, as 
provided for by section 751(a)(2)(C) of the Act: (1) For exporters with 
separate rates listed above, we will establish a per kilogram cash 
deposit rate which will be equivalent to the company-specific cash 
deposit established in this review (see Memorandum to Barbara E. 
Tillman

[[Page 52107]]

through Maureen Flannery, from Mark Hoadley: Collection of Cash 
Deposits and Assessment of Duties on Freshwater Crawfish from the PRC, 
dated August 27, 2001); (2) for previously reviewed PRC and non-PRC 
exporters with separate rates, the cash deposit rate will be the 
company-specific rate established for the most recent period; (3) for 
all other PRC exporters, the rate will be the current PRC-wide rate, 
217.09 percent; and (4) for all other non-PRC exporters of subject 
merchandise from the PRC, the cash deposit rate will be the rate 
applicable to the PRC supplier of that exporter.This notice also serves 
as a preliminary reminder to importers of their responsibility under 19 
CFR 351.402(f) of the Department's regulations 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.
    This administrative review and notice are published in accordance 
with section 751(a)(1) of the Act, and sections 351.213 and 351.221 of 
the Department's regulations.

    Dated: October 1, 2001.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 01-25709 Filed 10-11-01; 8:45 am]
BILLING CODE 3510-DS-P