[Federal Register Volume 67, Number 134 (Friday, July 12, 2002)]
[Notices]
[Pages 46173-46176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-17593]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-851]


Certain Preserved Mushrooms From the People's Republic of China: 
Final Results of Third New Shipper Review and Final Results and Partial 
Rescission of Second Antidumping Duty Administrative Review

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

ACTION: Notice of final results of third new shipper review and final 
results and partial rescission of second antidumping duty 
administrative review.

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SUMMARY: On March 6, 2002, the Department of Commerce published the 
preliminary results of the third new shipper review and second 
antidumping duty administrative review of the antidumping duty order on 
certain preserved mushrooms from the People's Republic of China. See 
Certain Preserved Mushrooms from the People's Republic of China: 
Preliminary Results of New Shipper Review and Preliminary Results and 
Partial Rescission of Second Antidumping Duty Administrative Review, 67 
FR 10128 (March 6, 2002) (Preliminary Results). The new shipper review 
covers two respondents and the administrative review covers two 
respondents (see ``Background'' section below for further discussion). 
The

[[Page 46174]]

period of review is February 1, 2000, through January 31, 2001. We gave 
interested parties an opportunity to comment on our preliminary 
results.
    Based on the additional publicly available information used in 
these final results and the comments received from the interested 
parties, we have made changes in the margin calculations for the 
respondents in these reviews. The final weighted-average dumping 
margins for the reviewed firms in these reviews are listed below in the 
section entitled ``Final Results of Reviews.''

EFFECTIVE DATE: July 12, 2002.

FOR FURTHER INFORMATION CONTACT: Brian Smith or Sophie Castro, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, Washington, DC 20230; telephone: (202) 482-1766 or (202) 482-
0588, respectively.

SUPPLEMENTARY INFORMATION:

The Applicable Statute

    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 (``URAA''). In addition, 
unless otherwise indicated, all citations to the Department of 
Commerce's (``the Department's'') regulations are to 19 CFR part 351 
(2000).

Background

    Of the 26 companies \1\ for which the Department initiated reviews 
based on a request made by the petitioners,\2\ these reviews now cover 
only the following four exporters: (1) Gerber; (2) Raoping Xingyu; (3) 
Shantou Hongda; and (4) Shenxian Dongxing (see ``Partial Rescission of 
Administrative Review'' section below of this notice for further 
discussion).
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    \1\ The petitioners' request included the following companies: 
(1) Tak Fat Trading Co. (``Tak Fat''); (2) Mei Wei Food Industry 
Co., Ltd. (``Mei Wei''); (3) China Processed Food Import & Export 
Company (``China Processed''); (4) Fujian Yu Xing Fruits and 
Vegetables Foodstuffs Co., Ltd. (``Fujian Yu Xing''); (5) Raoping 
Xingyu Foods, Co., Ltd. (``Raoping Xingyu''); (6) Raoping Yucun 
Canned Foods Factory (``Raoping Yucun''); (7) Shantou Hongda 
Industrial General Corporation (``Shantou Hongda''); (8) Shenxian 
Dongxing Foods Co., Ltd. (``Shenxian Dongxing''); (9) Gerber Food 
(Yunnan) Co., Ltd. (``Gerber''); (10) Green Fresh Foods (Zhangzhou) 
Co., Ltd. (``Green Fresh''); (11) Zhang Zhou Longhai Lubao Food Co., 
Ltd. (``Zhang Zhou Longhai''); (12) Citic Ningbo Import & Export 
Corp., Ltd. (``Citic Ningbo''); (13) Shanghai Foodstuffs Import & 
Export Corporation (``Shanghai Foodstuffs''); (14) Zhejiang Cereals, 
Oils & Foodstuffs Import & Export Co., Ltd. (``Zhejiang Cereals''); 
(15) China Ningbo Canned Food Factory (``China Ningbo''); (16) 
Longhai Senox Limited (``Longhai Senox''); (17) Beiliu Canned Food 
Factory (``Beiliu Canned''); (18) Fujian Cereals, Oils & Foodstuffs 
Import & Export (Group) Corp. (``Fujian Cereals''); (19) Putian 
Cannery (``Putian''); (20) General Canned Food Factory of Zhangzhou; 
(21) Jiangsu Cereals, Oils & Foodstuffs Import & Export Group Corp. 
(``Jiangsu Cereals''); (22) Canned Goods Company of Raoping; (23) 
Shenzhen Cofry Cereals, Oils & Foodstuffs, Co., Ltd. (``Shenzhen 
Cofry''); (24) Xiamen Gulong Import & Export Co., Ltd. (``Xiamen 
Gulong''); (25) Dongya Food Co., Ltd. (``Dongya''); and (26) Xiamen 
Jiahua Import & Export Trading Co., Ltd. (``Xiamen Jiahua'').
    \2\ The petitioners are the Coalition for Fair Preserved 
Mushroom Trade which includes the American Mushroom Institute and 
the following domestic companies: L.K. Bowman, Inc., Modern Mushroom 
Farms, Inc., Monterey Mushrooms, Inc., Mount Laurel Canning Corp., 
Mushrooms Canning Company, Southwood Farms, Sunny Dell Foods, Inc., 
and United Canning Corp.
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    On March 6, 2002, the Department published in the Federal Register 
the preliminary results of the third new shipper review and second 
antidumping duty administrative review of the antidumping duty order on 
certain preserved mushrooms from the People's Republic of China 
(``PRC'') (see Preliminary Results at 67 FR 10128). On March 26, 2002, 
and in accordance with 19 CFR 351.301(c)(3)(ii), one of the four 
respondents, Gerber, submitted additional publicly available 
information for the Department's consideration in the final results. On 
April 5, 2002, another respondent, Raoping Xingyu submitted its case 
brief. On May 29, 2002, the parties withdrew their request for a 
hearing. The petitioners and Gerber submitted their case and rebuttal 
briefs on June 4, and June 10, 2002, respectively. Raoping Xingyu did 
not submit a rebuttal brief. The other two respondents, Shantou Hongda 
and Shenxian Dongxing, did not file case or rebuttal briefs.
    On June 21, 2002, we informed the parties to this proceeding that 
we considered the data contained in three attachments to the 
petitioners' case brief to be new factual information pursuant to 19 
CFR 351.301(c)(3)(ii). However, we also informed the parties that we 
considered this information to be relevant to this proceeding and had 
decided to consider it in these final results. Therefore, because it 
was filed in an untimely manner in this proceeding, we provided the 
respondents until June 26, 2002, to submit comments on that new factual 
information and the petitioners' arguments in reliance on that 
information. On June 26, 2002, Gerber submitted comments on the use of 
that information in this proceeding.
    The Department has conducted these reviews in accordance with 
section 751 of the Act.

Scope of the Order

    The products covered by this order are certain preserved mushrooms 
whether imported whole, sliced, diced, or as stems and pieces. The 
preserved mushrooms covered under this order are the species Agaricus 
bisporus and Agaricus bitorquis. ``Preserved mushrooms'' refer to 
mushrooms that have been prepared or preserved by cleaning, blanching, 
and sometimes slicing or cutting. These mushrooms are then packed and 
heated in containers including, but not limited to, cans or glass jars 
in a suitable liquid medium, including, but not limited to, water, 
brine, butter or butter sauce. Preserved mushrooms may be imported 
whole, sliced, diced, or as stems and pieces. Included within the scope 
of this order are ``brined'' mushrooms, which are presalted and packed 
in a heavy salt solution to provisionally preserve them for further 
processing.
    Excluded from the scope of this order are the following: (1) All 
other species of mushroom, including straw mushrooms; (2) all fresh and 
chilled mushrooms, including ``refrigerated'' or ``quick blanched 
mushrooms''; (3) dried mushrooms; (4) frozen mushrooms; and (5) 
``marinated,'' ``acidified'' or ``pickled'' mushrooms, which are 
prepared or preserved by means of vinegar or acetic acid, but may 
contain oil or other additives.\3\
    The merchandise subject to this order is currently classifiable 
under subheadings 2003.10.0027, 2003.10.0031, 2003.10.0037, 
2003.10.0043, 2003.10.0047, 2003.10.0053, and 0711.90.4000 of the 
Harmonized Tariff Schedule of the United States \4\ (``HTSUS''). 
Although the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the scope of this order is 
dispositive.

Partial Rescission of Administrative Review

    We have rescinded this review with respect to China Processed, 
Fujian Yu Xing, and Xiamen Jiahua pursuant to 19 CFR 351.213(d)(1), 
because the petitioners withdrew their request for review and no other 
interested party requested a review of these companies. We have also 
rescinded this review with

[[Page 46175]]

respect to Shanghai Foodstuffs, Fujian Cereals, and the Canned Goods 
Company of Raoping pursuant to 19 CFR 351.213(d)(3). Each of these 
companies reported that it made no shipments of subject merchandise 
during the period of review (``POR'') in response to the Department's 
questionnaire. Based on the results of our examination of shipment data 
furnished by the Customs Service, we are satisfied that these 
respondents did not ship subject merchandise to the United States 
during the POR. Moreover, we have rescinded this review with respect to 
Tak Fat, Mei Wei, Zhang Zhou Longhai, Citic Ningbo, Zhejiang Cereals, 
China Ningbo, Longhai Senox, Beiliu Canned, Putian, General Canned Food 
Factory of Zhangzhou, Jiangsu Cereals, Shenzhen Cofry, Xiamen Gulong, 
and Dongya, because the shipment data furnished by the Customs Service 
also indicated that there were no U.S. entries of subject merchandise 
during the POR for these companies. See Preliminary Results, 67 FR at 
10128.
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    \3\ On June 19, 2000, the Department affirmed that 
``marinated,'' ``acidified,'' or ``pickled'' mushrooms containing 
less than 0.5 percent acetic acid are within the scope of the 
antidumping duty order. See ``Recommendation Memorandum--Final 
Ruling of Request by Tak Fat, et al. for Exclusion of Certain 
Marinated, Acidified Mushrooms from the Scope of the Antidumping 
Duty Order on Certain Preserved Mushrooms from the People's Republic 
of China,'' dated June 19, 2000.
    \4\ As of January 1, 2002, the HTS codes are as follows: 
2003.10.0127, 2003.10.0131, 2003.10.0137, 2003.10.0143, 
2003.10.0147, 2003.10.0153, and 0711.51.0000.
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    With respect to Green Fresh, we erred in the preliminary 
determination by deeming Green Fresh to be an uncooperative respondent 
based on shipment data furnished by the Customs Service. After further 
examination and clarification of the response from Green Fresh, we have 
concluded that the shipment data furnished by the Customs Service 
reflects a U.S. entry of the subject merchandise which the Department 
reviewed in a prior new shipper review. See Final Results of New 
Shipper Review: Certain Preserved Mushrooms from the People's Republic 
of China, 66 FR 45006 (August 27, 2001). Therefore, this shipment is 
not a sale which the Department needs to consider in this 
administrative review. As result, pursuant to 19 CFR 351.213(d)(3), we 
are rescinding this review with respect to Green Fresh because we are 
satisfied that Green Fresh had no entries of the subject merchandise 
into the United States during this POR based on data furnished by the 
Customs Service.

Analysis of Comments Received

    All issues raised in the case briefs are addressed in the Issues 
and Decision Memorandum (``Decision Memo'') from Richard W. Moreland, 
Deputy Assistant Secretary for Import Administration, to Faryar 
Shirzad, Assistant Secretary for Import Administration, which is hereby 
adopted by this notice. A list of the issues raised, all of which are 
in the Decision Memo, is attached to this notice as an Appendix. 
Parties can find a complete discussion of all issues raised in the 
briefs and the corresponding recommendations in this public memorandum 
which is on file in the Central Records Unit, room B-099 of the main 
Department building. In addition, a complete version of the Decision 
Memo can be accessed directly on the Web at http://ia.ita.doc.gov. The 
paper copy and electronic version of the Decision Memo are identical in 
content.

Changes Since the Preliminary Results

    Based on the use of additional publicly available information and 
the comments received from the interested parties, we have made changes 
in the margin calculation for each respondent. For a discussion of 
these changes, see the ``Margin Calculations'' section of the Decision 
Memo.
    For the final results, we calculated average surrogate percentages 
for factory overhead, selling, general and administrative expenses, and 
profit using the 2000-2001 financial reports of Agro Dutch Foods Ltd. 
(``Agro Dutch'') and Flex Foods Ltd. (``Flex Foods''), and the 1999-
2000 financial report of Himalya International Ltd. (``Himalya''). See 
Decision Memo at Comment 5.
    We have corrected an error which affected the amount of 
miscellaneous fixed assets to include in the factory overhead 
percentage derived from data contained in Himalya's 1999-2000 financial 
report of an Indian producer of the subject merchandise.
    To value fresh mushrooms, we calculated a simple average price 
based on data contained in the 2000-2001 financial report of Premier 
Explosives Ltd. (``Premier''), the 1999-2000 financial report of Agro 
Dutch, and February 2000-January 2001 price data contained in the 
Economic Times of India. See Decision Memo at Comment 1.
    For Shantou Hongda and Gerber, we used price data contained in the 
1999-2000 financial report, rather than in the 2000-2001 financial 
report of Agro Dutch to calculate an average POR price for a 68 ounce 
can since the 1999-2000 financial report contained specific price data 
in that report. For Raoping Xingyu, we used its reported market-economy 
prices to value this input. See Decision Memo at Comment 4.
    To value spawn and cattle manure, we used data from the 2000-2001 
financial reports of Agro Dutch and Flex Foods.
    To value straw, we calculated an average price based on the wheat 
straw value from Agro Dutch's 2000-2001 financial report and the 
general straw value from Flex Foods' 2000-2001 financial report. See 
Decision Memo at Comment 3.
    To value grain and super phosphate, we used data from Flex Foods' 
2000-2001 financial report.
    To value super potassium, we used a POR value from the publication 
Chemical Weekly.
    Since the surrogate value for salt was not contemporaneous with the 
POR, we adjusted this value for inflation using wholesale price indices 
published in the International Monetary Fund's International Financial 
Statistics.
    With respect to Gerber, we have corrected arithmetical errors which 
affected the calculation of electricity costs associated with its spawn 
production, the cost of the mushrooms it purchased for use in the 
brining stage of production, and the cost of cans it used in the 
processing stage of production.
    We have removed language in the SAS program used for Raoping Xingyu 
which overwrote data for two control numbers and have assigned to each 
distinct product code the factors contained in Raoping Xingyu's May 9, 
2002, supplemental response. In addition we have corrected the scrap 
value in Raoping Xingyu's margin program.
    To account for different drained weight capacities of various sizes 
of cans used by one respondent (i.e., Shantou Hongda) and purchased by 
another respondent (i.e., Raoping Xingyu), we have calculated for each 
can size a price per drained weight based on the price per piece 
obtained from surrogate value data. Since Shenxian Dongxing produced 
its own cans and Gerber reported its can usage on a piece basis rather 
than on a kilogram basis, we did not need to make the above-noted 
adjustment for those companies. See Decision Memo at Comment 10.

Final Results of Reviews

    We determine that the following weighted-average margin percentages 
exist for the period February 1, 2000, through January 31, 2001:

------------------------------------------------------------------------
                                                                 Margin
                           Exporter                            (percent)
------------------------------------------------------------------------
Gerber Food (Yunnan) Co., Ltd................................      14.79
Raoping Xingyu Foods, Co., Ltd...............................     161.57
Shantou Hongda Industrial General Corporation................       0.00
Shenxian Dongxing Foods Co., Ltd.............................       0.00
------------------------------------------------------------------------

Assessment Rates

    The Department shall determine, and the Customs Service shall 
assess, antidumping duties on all appropriate entries. In accordance 
with 19 CFR

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351.106(c)(2), we will instruct the Customs Service to liquidate 
without regard to antidumping duties all entries of subject merchandise 
during the POR from each respondent for which the import-specific 
assessment rate is zero or de minimis (i.e., less than 0.50 percent). 
In accordance with 19 CFR 351.212(b), we have calculated importer-
specific ad valorem duty assessment rates. We will direct the Customs 
Service to assess the resulting percentage margin against the entered 
Customs values for the subject merchandise on each of that importer's 
entries under the relevant order during the review period.

Cash Deposit Requirements

    The following deposit rates shall be required for merchandise 
subject to the order entered, or withdrawn from warehouse, for 
consumption on or after the publication date of these final results, as 
provided by section 751(a)(1) and 751(a)(2)(B) of the Act: (1) The cash 
deposit rates for Gerber, Raoping Xingyu, Shantou Hongda, and Shenxian 
Dongxing will be the rates indicated above; (2) the cash deposit rate 
for PRC exporters for whom the Department has rescinded the review or 
for whom a review was not requested for this POR (i.e., China 
Processed, Fujian Yu Xing, Xiamen Jiahua, Fujian Cereals, Shanghai 
Foodstuffs, the Canned Goods Company of Raoping, Tak Fat, Mei Wei, 
Zhang Zhou Longhai, Citic Ningbo, Zhejiang Cereals, China Ningbo, 
Longhai Senox, Beiliu Canned, Putian, General Canned Food Factory of 
Zhangzhou, Jiangsu Cereals, Shenzhen Cofry, Xiamen Gulong, and Dongya) 
will continue to be the rate assigned in an earlier segment of the 
proceeding or the PRC-wide rate of 198.63 percent; (3) the cash deposit 
rate for all other PRC exporters will continue to be 198.63 percent; 
and (4) the cash deposit rate for non-PRC exporters of subject 
merchandise from the PRC will be the rate applicable to the PRC 
supplier of that exporter. These deposit requirements shall remain in 
effect until publication of the final results of the next 
administrative review.
    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) 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 doubled antidumping duties.
    This notice also serves as the only reminder to parties subject to 
administrative protective orders (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a). Timely 
written notification of the return/destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and terms of an APO is a violation which is 
subject to sanction.
    We are issuing and publishing this determination and notice in 
accordance with sections section 751(a)(1), 751(a)(2)(B), and 777(i) of 
the Act and 19 CFR 351.213 and 351.214.

    Dated: July 5, 2002.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.

Appendix--Issues in Decision Memo

Comments

    1. Surrogate Value Selection for Fresh Mushrooms.
    2. Surrogate Value Selection for Furnace Oil.
    3. Surrogate Value Selection for Straw.
    4. Surrogate Value Selection for Cans and Lids.
    5. Whether to Use Data Contained in More Current Financial 
Reports Submitted for Two Indian Producers of the Subject 
Merchandise.
    6. How to Treat Water Costs.
    7. Whether to Use Domestic Rather than Import Surrogate Values.
    8. Whether to Inflate Certain Surrogate Values Which Cover a 
Portion of the Period of Review.
    9. Whether to Inflate U.S. Dollar-Denominated Surrogate Values 
to the POR.
    10. Whether to Adjust Factors Reported by Raoping Xingyu for 
Certain Can Sizes.
    11. Whether to Adjust Factors Reported by Shantou Hongda and 
Shenxian Dongxing.
    12. The Use of Information Contained in the Petitioners' Case 
Brief.

[FR Doc. 02-17593 Filed 7-11-02; 8:45 am]
BILLING CODE 3510-DS-P