[Federal Register Volume 67, Number 19 (Tuesday, January 29, 2002)]
[Notices]
[Pages 4237-4239]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-2138]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-820]


Preliminary Results of Five-Year Sunset Review of Suspended 
Antidumping Duty Investigation: Fresh Tomatoes From Mexico

AGENCY: Import Administration, International Trade Administration, 
Commerce.

ACTION: Notice of preliminary results of full sunset review: fresh 
tomatoes from Mexico.

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SUMMARY: On October 1, 2001, the Department of Commerce (``the 
Department'') initiated a five-year (``sunset'') review of the 
suspended antidumping duty investigation on fresh tomatoes from Mexico 
(66 FR49926) pursuant to section 751(c) of the Tariff Act of 1930, as 
amended (``the Act''). On the basis of notice of intent to participate 
filed on behalf of domestic interested parties, and substantive 
comments filed on behalf of the domestic and respondent interested 
parties, the Department is conducting a full (240-day) sunset review of 
this suspended antidumping duty investigation. As a result of this 
review, the Department preliminarily finds that termination of the 
suspended antidumping duty investigation on fresh tomatoes from Mexico 
would be likely to lead to continuation or recurrence of dumping at the 
levels indicated in the Preliminary Results of Review section of this 
notice.

EFFECTIVE DATE: January 29, 2002.

FOR FURTHER INFORMATION CONTACT: James P. Maeder or Martha V. Douthit, 
Office of Policy for Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
3330 or (202) 482-5050, respectively.

SUPPLEMENTARY INFORMATION:

Statute and Regulations

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (``the Act''), are references to the provisions 
effective January 1, 1995, the effective date of the amendments made to 
the Act by the Uruguay Round Agreements Act. In addition, unless 
otherwise indicated, all citations to the Department regulations are to 
19 CFR part 351 (2001). Guidance on methodological or analytical issues 
relevant to the Department's conduct of sunset reviews is set forth in 
the Department Policy Bulletin 98:3 Policies Regarding the Conduct of 
Five-year (``Sunset'') Reviews of Antidumping and Countervailing Duty 
Orders; Policy Bulletin, 63 FR 18871 (April 16, 1998) (Sunset Policy 
Bulletin).

Scope of Review

    The products covered by the sunset review of the suspension 
agreement on fresh tomatoes from Mexico include all fresh or chilled 
tomatoes (fresh tomatoes) except for cocktail tomatoes and those 
tomatoes which are for processing. For purposes of this review, 
cocktail tomatoes are greenhouse-grown tomatoes, generally larger than 
cherry tomatoes and smaller than roma or common round tomatoes, and are 
harvested and packaged on-the-vine for retail sale. For purposes of 
this review, processing is defined to include preserving by any 
commercial process, such as canning, dehydrating, drying or the 
addition of chemical substances, or converting the tomato product into 
juices, sauces or purees. Further, imports of fresh tomatoes for 
processing are accompanied by an ``Importer's Exempt Commodity Form'' 
(FV-6) (within the meaning of 7 CFR section 980.501(a)(2) and 
980.212(i)). Fresh tomatoes that are imported for cutting up, not 
further processed (e.g., tomatoes used in the preparation of fresh 
salsa or salad bars), and not accompanied by an FV-6 form are covered 
by the scope of this review. All commercially grown tomatoes sold in 
the United States, both for the fresh market and for processing, are 
classified as Lycopersicon esculentum. Important commercial varieties 
of fresh tomatoes include common round, cherry, plum, and pear 
tomatoes, all of which, with the exception of cocktail tomatoes, are 
covered by this review. Tomatoes imported from Mexico covered by this 
review are classified under the following subheadings of the Harmonized 
Tariff Schedules of the United States (HTS), according to the season of 
importation: 0702.00.20, 0702.00.40, 0702.00.60, and 9906.07.01 through 
9906.07.09. Although the HTS numbers are provided for convenience and 
customs purposes, our written description of the scope of this 
proceeding is dispositive.

History of Suspension Agreement

    On April 18, 1996, the Department initiated an antidumping duty 
investigation under section 732 of the Tariff Act of 1930 (``the Act'') 
on fresh tomatoes from Mexico. See Initiation of Antidumping Duty 
Investigation: Fresh Tomatoes From Mexico, 61 FR 18377 (April 25, 
1996). On October 28, 1996, the Department preliminarily

[[Page 4238]]

determined that imports of fresh tomatoes from Mexico were being sold 
in the United States at less than fair value. In the preliminary 
determination of the investigation, the Department calculated weighted-
average dumping margins of 4.16 percent for San Vincente Camalu 
(``Camalu''), 11.89 percent for Ernesto Fernando Echavarria Salazar 
Grupo Solidario (``Echavarria''), 26.97 percent for Arturo Lomeli 
Villalobas S.A. de C. V. (``Lomeli''), 188.45 percent for Eco Cultivos, 
S.A. de C.V. (``Eco-Cultivos''), 10.26 percent for Ranchos Los Pinos S. 
de R.L. de C.V. (``RLP''), 28.30 percent for Administradora Horticola 
Del Tamazula (``Tamazula''), 11.95 percent for Agricola Yory 
(``Yory''), and 17.56 percent for ``all other'' Mexican producers and 
exporters of the subject merchandise. On that same day, the Department 
and the signatory producers/exporters of fresh tomatoes from Mexico 
signed the final suspension agreement (the ``Agreement'') and which was 
published in the Federal Register concurrently. Notice of Preliminary 
Determination of Sales at Less Than Fair Value and Postponement of 
Final Determination (61 FR 56618) and Suspension of Antidumping 
Investigation on Fresh Tomatoes from Mexico (63 FR 43674). On August 
14, 1998, the Department published the only amendment to the Agreement. 
See Amendment to the Suspension Agreement on Fresh Tomatoes from 
Mexico, 63 FR 43674 (April 14, 1998). The Agreement remains in effect 
for all producers and exporters of fresh tomatoes from Mexico who are 
signatories of the agreement.

Background

    On October 1, 2001, the Department initiated a sunset review of the 
suspended antidumping duty investigation on fresh tomatoes from Mexico, 
pursuant to section 751(c) of the Act. See Notice of Initiation of 
Five-Year (Sunset) Review, 66 FR 49926 (October 1, 2001). On October 
16, 2001, the Department received Notice of Intent to Participate on 
behalf of the Florida Commissioner of Agriculture, the Florida Tomato 
Growers Exchange (``FTGE''), the Florida Tomato Exchange (``FTE''), the 
California Fresh Tomato Growers Exchange (``CFTGE''), the Florida Fruit 
and Vegetable Association (``FFVA''), the South Carolina Tomato 
Association (``SCTA''), the Gadsden County Tomato Growers Association 
(``GCTGA''), the Quincy Tomato Growers Exchange (``QTGE''), and 
Eurofresh (collectively, ``domestic interested parties''), within the 
applicable deadline specified in section 351.218(d)(1)(i) of the Sunset 
Regulations. See Letters of Domestic Interested Parties, Notice of 
Intent to Participate--Sunset Review of the Suspension Agreement on 
Fresh Tomatoes from Mexico, October 16, 2001. Domestic interested 
parties claimed interested-party status under sections 771(9)(E), 
771(9)(F), and 771(9)(C) of the Act. See Domestic Interested Party's 
Notice of Intent to Participate, October 16, 2001, at 2-4. In addition, 
domestic interested parties assert that they are not related to a 
foreign producer/exporter and are not importers, or related to 
importers, of the subject merchandise. Id. 5-7. On October 31, 2001, 
the Department received a complete substantive response from the 
domestic interested parties within the 30-day deadline specified in the 
Sunset Regulations under section 351.218(d)(3)(i). On October 31, 2001, 
the Department received a complete substantive response to the notice 
of initiation in the five-year sunset review from respondent interested 
parties: Confederacion de Asociaciones de Agricolas del Estado de 
Sinaloa and the Confederation Nacional de Productores de Hortalizas 
(collectively ``CAADES''). CAADES asserts that it participated fully in 
the original investigation and works closely with its members as well 
as with additional members who elected to submit voluntary responses. 
See CAADES, substantive response at 3. In addition, CAADES states that 
it worked closely with the Department to negotiate the suspension 
agreement and has met on a regular basis with the Department to discuss 
implementing, monitoring, and improving the agreement. Id. CAADES 
claimed interested-party status under section 771(9)(A) of the Act as a 
Mexican confederation, the majority of whose members grow and/or export 
tomatoes. On November 5, 2001, CAADES requested an extension of the 
deadline for filing rebuttal to the substantive responses. On that same 
day, the Department extended the deadline until November 7, 2001, for 
all participants eligible to file rebuttal comments.
    In a sunset review, the Department normally will conclude that 
there is adequate response to conduct a full sunset review where 
respondent interested parties account for more than 50 percent, by 
volume, of total exports of subject merchandise to the United States. 
See, 19 CFR 351.218(e)(1)(ii)(A) (63 FR 13516 (March 20, 1998)). After 
examining CAADES's total exports of the subject merchandise, on 
November 20, 2001, the Department determined that CAADES accounted for 
more than 50 percent total production of the domestic like product. See 
November 20, 2001, Letter from Jeffrey A. May, Director, Office of 
Policy, Import Administration, to Lynn Featherstone, Director, Office 
of Investigations, International Trade Commission. Because the response 
of CAADES constituted an adequate response to the notice of initiation, 
the Department is conducting a full (240-day) sunset review in 
accordance with section 751(c)(3)(B) of the Act, and 19 CFR 
351.218(e)(1)(i) and will issue final results of review not later than 
May 29, 2002.

Analysis of Comments Received

    All issues raised by parties to this sunset review are addressed in 
the Issues and Decision Memorandum (``Decision Memorandum'') from 
Jeffrey A. May, Director, Office of Policy, Import Administration, to 
Faryar Shirzad, Assistant Secretary for Import Administration, dated 
January 22, 2002, which is adopted by this notice. The issues discussed 
in the Decision Memorandum include the likelihood of continuation or 
recurrence of dumping and the magnitude of the margins likely to 
prevail were the Agreement terminated. Parties may find a complete 
discussion of all issues raised in this review and the corresponding 
recommendations in this public memorandum which is on file in the 
Central Records Unit, room B-099, of the main Commerce building. In 
addition, a complete version of the Decision Memorandum may be accessed 
directly on the Web at http://ia.ita.doc.gov/frn, under the heading 
``January 2002.'' The paper copy and electronic version of the Decision 
Memorandum are identical in content.

Preliminary Results of Review

    We preliminarily determine that termination of the suspended 
antidumping duty investigation on fresh tomatoes from Mexico would be 
likely to lead to continuation or recurrence of dumping at the 
following percentage weighted-average margins:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                   Manufacturer/exporters                       margin
                                                              percentage
------------------------------------------------------------------------
Camalu.....................................................         4.16
Echavarria.................................................        11.89
Lomeli.....................................................        26.97
Eco-Cultivos...............................................       188.45
RLP........................................................        10.26
Tamazula...................................................        28.30
Yory.......................................................        11.95
All Others.................................................        17.56
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[[Page 4239]]

    Any interested party may request a hearing within 30 days of 
publication of this notice in accordance with 19 CFR 351.310(c). 
Interested parties may submit case briefs no later than March 11, 2002, 
in accordance with 19 CFR 351.309(c)(1)(i). Rebuttal briefs, which must 
be limited to issues raised in the case briefs, may be filed not later 
than March 15, 2002. Any hearing, if requested, will be held on March 
18, 2002, in accordance with 19 CFR 351.310(d). The Department will 
issue a notice of final results of this sunset review, which will 
include the results of its analysis of issues raised in any such, no 
later than May 29, 2002.
    This sunset review and notice are in accordance with sections 
751(c), 752, and 777(i)(1) of the Act.

    Dated: January 22, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 02-2138 Filed 1-28-02; 8:45 am]
BILLING CODE 3510-DS-P