[Federal Register Volume 67, Number 247 (Tuesday, December 24, 2002)]
[Notices]
[Pages 78416-78417]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32266]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-533-813]


Certain Preserved Mushrooms from India: Initiation and 
Preliminary Results of Changed-Circumstances Review

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

ACTION: Notice of Initiation and Preliminary Results of Changed-
Circumstances Review.

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SUMMARY: The Department of Commerce has received information sufficient 
to warrant initiation of a changed-circumstances review of the 
antidumping order on certain preserved mushrooms from India. Based on 
this information, we preliminarily determine that KICM (MADRAS) Limited 
is the successor-in-interest to Hindustan Lever Limited for purposes of 
determining antidumping duty liability. Interested parties are invited 
to comment on these preliminary results.

EFFECTIVE DATE: December 24, 2002.

FOR FURTHER INFORMATION CONTACT: David J. Goldberger or Tinna E. 
Beldin, Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, N.W., 
Washington, D.C. 20230; telephone (202) 482-4136 or 482-1655, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On February 19, 1999, the Department of Commerce (``Department'') 
published in the Federal Register an amended final determination and 
antidumping duty order on certain preserved mushrooms from India (64 FR 
8311), which included a cash deposit rate for Ponds India Limited 
(``Ponds''). In the course of the first administrative review, the 
Department noted that Ponds had become Hindustan Lever Limited 
(``HLL''). See Certain Preserved Mushrooms From India: Final Results of 
Antidumping Duty Administrative Review, 66 FR 42507, 42508 (August 13, 
2001). On October 17, 2002, HLL submitted a request that the Department 
initiate a changed-circumstances review to confirm that its wholly-
owned subsidiary, KICM (MADRAS) Limited, is its successor-in-interest 
and should be entitled to the same cash deposit rate. The Department 
determined that HLL's request was incomplete and could not serve as a 
basis to initiate a changed-circumstances review. See Letter from 
Department to HLL Re: Certain Preserved Mushrooms from India: Request 
for Changed-Circumstances Review (October, 28, 2002). On November 6, 
2002, HLL submitted supplemental information and documentation, and 
renewed its request that the Department conduct a changed-circumstances 
review to determine whether KICM should receive the same antidumping 
duty treatment as is accorded to HLL with respect to the subject 
merchandise.

Scope of the Order

    The product 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,

[[Page 78417]]

brine, butter or butter sauce. Preserved mushrooms may be imported 
whole, sliced, diced, or as stems and pieces. Included within the scope 
of the 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.
    The merchandise subject to this order are 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 (HTSUS). HTSUS subheadings are provided 
for convenience and customs purposes. The written description of the 
scope of this order is dispositive.

Initiation and Preliminary Results of Review

    In its November 6, 2002, submission, HLL advised the Department 
that, effective July 1, 2002, its wholly-owned subsidiary, KICM had 
acquired its entire mushroom business. According to the submission, HLL 
transferred the entire mushroom business to KICM on June 30, 2002. The 
transfer took place without any discontinuity of operations. HLL 
suspended mushroom operations at the close of business on June 30, 
2002; KICM began mushroom operations at the opening of business on July 
1, 2002. In its submission, HLL states and provides supporting 
documentation that all personnel, operations, and facilities remain 
essentially unchanged. In accordance with section 751(b) of the Tariff 
Act of 1930, as amended (``the Act'') and 19 CFR 351.216, the 
Department has determined that there is a sufficient basis to initiate 
a changed-circumstances review to determine whether KICM is the 
successor-in-interest to HLL.
    In making such a successor-in-interest determination, the 
Department examines several factors including, but not limited to, 
changes in: (1) Management; (2) production facilities; (3) supplier 
relationships; and (4) customer base. See e.g., Polychloroprene Rubber 
from Japan: Final Results of Changed Circumstances Review, 67 FR 58 
(January 2, 2002) (Polychloroprene Rubber from Japan), and Brass Sheet 
and Strip from Canada: Final Results of Antidumping Duty Administrative 
Review, 57 FR 20460 (May 13, 1992) (Canadian Brass). While no single or 
several of these factors will necessarily provide a dispositive 
indication, the Department will generally consider the new company to 
be the successor to the previous company if its resulting operation is 
not materially dissimilar to that of its predecessor. See e.g., 
Polychloroprene Rubber from Japan, Industrial Phosphoric Acid from 
Israel: Final Results of Changed Circumstances Review, 59 FR 6944, 6946 
(February 14, 1994), Canadian Brass, and Fresh and Chilled Atlantic 
Salmon from Norway: Initiation and Preliminary Results of Changed 
Circumstances Antidumping Duty Administrative Review, 63 FR 50880, 
50881 (September 23, 1998). Thus, if the evidence demonstrates that, 
with respect to the production and sale of the subject merchandise, the 
new company operates as the same business entity as the former company, 
the Department will accord the new company the same antidumping and 
countervailing duty treatment as its predecessor.
    We preliminarily determine that KICM is the successor-in-interest 
to HLL, following HLL's transfer and KICM's acquisition of HLL's 
mushroom business. HLL submitted documentation attached to its November 
6, 2002 submission supporting its claims that KICM's acquisition of its 
mushroom business resulted in no changes in either production 
facilities, supplier relationships, customer base, or management. This 
documentation consisted of: (1) HLL's Published Annual Report for 2001 
specifying KICM as one of its wholly-owned subsidiaries; (2) copies of 
the resolutions passed by the Board of Directors of HLL and KICM, 
respectively, that authorized KICM's acquisition of the mushroom 
business; and (3) a copy of the agreement for the sale and transfer of 
the mushroom business from HLL to KICM. The documentation described in 
items (2) and (3) above demonstrates that (i) all employees of HLL, 
including management, have been transferred to KICM, (ii) the business 
is being sold as a going concern, and (iii) there were no changes in 
management structure, supplier relationships, production facilities, or 
customer base.
    When warranted the Department may publish the notice of initiation 
and preliminary determination concurrently. See 19 CFR 221(c)(3)(ii). 
The Department has determined that such action is warranted because HLL 
has provided prima facie evidence that KICM is its successor-in-
interest.
    For the forgoing reasons, we preliminarily determine that KICM is 
the successor-in-interest to HLL and, thus, should receive the same 
antidumping duty treatment with respect to certain preserved mushrooms 
from India as the former HLL.

Public Comment

    Any interested party may request a hearing within 10 days of 
publication of this notice. Any hearing, if requested, will be held no 
later than 21 days after the date of publication of this notice, or the 
first workday thereafter. Case briefs from interested parties may be 
submitted not later than 7 days after the date of publication of this 
notice. Rebuttal briefs, limited to the issues raised in those 
comments, may be filed not later than 14 days after the date of 
publication of this notice. All written comments shall be submitted in 
accordance with 19 CFR 351.303. Persons interested in attending the 
hearing, if one is requested, should contact the Department for the 
date and time of the hearing. The Department will publish the final 
results of this changed circumstances review, including the results of 
its analysis of issues raised in any written comments.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(b) and 777(i)(1) of the Act and section 
351.216 of the Department's regulations.

    Dated: December 17, 2002.
Bernard T. Carreau,
Acting Assistant Secretary for Import Administration.
[FR Doc. 02-32266 Filed 12-23-02; 8:45 am]
BILLING CODE 3510-DS-S