[Federal Register Volume 68, Number 66 (Monday, April 7, 2003)]
[Notices]
[Pages 16761-16763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-8410]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-489-805][C-489-806]


Notice of Initiation and Preliminary Results of Changed 
Circumstances Antidumping and Countervailing Duty Administrative 
Reviews: Certain Pasta from Turkey

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

ACTION: Notice of Initiation and Preliminary Results of Changed 
Circumstances Antidumping and Countervailing Duty Administrative 
Reviews: Certain Pasta from Turkey.

-----------------------------------------------------------------------

SUMMARY: The Department of Commerce (``the Department'') has received 
information sufficient to warrant initiation of changed circumstances 
administrative reviews of the antidumping and countervailing duty 
orders on certain pasta from Turkey. Based on this information, we 
preliminarily determine that Gidasa Sabanci Gida Sanayi ve Ticaret A.S. 
(``Gidasa'') is the successor-in-interest to Maktas Makarnacilik ve 
Ticaret A.S. (``Maktas'') for purposes of determining antidumping and 
countervailing duty liabilities. Interested parties are invited to 
comment on these preliminary results.

EFFECTIVE DATE: April 7, 2003.

FOR FURTHER INFORMATION CONTACT: Jim Neel or Eric Greynolds 
(Antidumping) or Jennifer D. Jones (Countervailing), Office of AD/CVD 
Enforcement, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th and Constitution Avenue, NW, 
Washington, DC 20230; telephone: (202) 482-4161, (202) 482-6071, or 
(202)482-1664, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On July 24, 1996, the Department published in the Federal Register 
the antidumping and countervailing duty orders on pasta from Turkey (61 
FR 38545-38547). On February 12, 2003, Gidasa submitted information 
stating that Gidasa is the successor-in-interest to Maktas and, as 
such, Gidasa is entitled to the receive the same antidumping and 
countervailing duty treatment as is accorded Maktas. On March 5, 2003, 
petitioners entered their appearance and objected to an expedited 
treatment of these changed circumstances reviews on the basis that such 
treatment would preclude a ``full and meaningful'' participation of all

[[Page 16762]]

parties. Subsequently, on March 7, 2003, Gidasa submitted comments on 
petitioners' objections and provided further support for its expedited 
treatment request.

Scope of Reviews

    Imports covered by these reviews are shipments of certain non-egg 
dry pasta in packages of five pounds (2.27 kilograms) or less, whether 
or not enriched or fortified or containing milk or other optional 
ingredients such as chopped vegetables, vegetable purees, milk, gluten, 
diastases, vitamins, coloring and flavorings, and up to two percent egg 
white. The pasta covered by this scope is typically sold in the retail 
market, in fiberboard or cardboard cartons, or polyethylene or 
polypropylene bags of varying dimensions.
    Excluded from the scope of these reviews are refrigerated, frozen, 
or canned pastas, as well as all forms of egg pasta, with the exception 
of non-egg dry pasta containing up to two percent egg white.
    The merchandise subject to review is currently classifiable under 
item 1902.19.20 of the Harmonized Tariff Schedule of the United States 
(HTSUS). Although the HTSUS subheading is provided for convenience and 
Customs purposes, the written description of the merchandise subject to 
the order is dispositive.

Scope Ruling

    On October 26, 1998, the Department self-initiated a scope inquiry 
to determine whether a package of pasta weighing over five pounds as a 
result of allowable industry tolerances is within the scope of the 
antidumping and countervailing duty orders. On May 24, 1999, we issued 
a final scope ruling finding that, effective October 26, 1998, pasta in 
packages weighing or labeled up to (and including) five pounds four 
ounces is within the scope of the antidumping and countervailing duty 
orders. See Memorandum from John Brinkmann to Richard Moreland, dated 
May 24, 1999, in the case file in the Central Records Unit, main 
Commerce building, room B-099 (``CRU'').

Initiation and Preliminary Results of Changed Circumstances Antidumping 
and Countervailing Duty Reviews

    In a submission dated February 12, 2003, Gidasa advised the 
Department that in December 2002, Gidasa had acquired all of Maktas' 
assets. The relevant facts in that process were as follows.
    In December 2002, a Turkish holding company, Haci Omer Sabanci 
Holding A. S. (``Sabanci''), incorporated Gidasa as a Turkish 
corporation. Once established, Gidasa bought the assets of Maktas, 
including its facilities and its brand name (``Piyale''), essentially 
taking over all the activities and functions of Maktas.
    Gidasa then began producing the same products, under the Piyale 
name, with the same personnel and equipment and selling them to the 
same customers through the same channels, using the same management 
team as its predecessor, Maktas. 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 review of changed circumstances to determine whether Gidasa 
is the successor-in-interest to Maktas.
    In making 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., Brass Sheet and Strip from Canada: Notice 
of Final Results of Antidumping Administrative Review, 57 FR 20460, 
20461 (May 13, 1992) (``Canadian Brass''). While no one 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., Industrial Phosphoric 
Acid from Israel: Final Results of Changed Circumstances Review, 59 FR 
6944 (February 14, 1994) and Canadian Brass, 57 FR at 20461. 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 assign the 
new company the cash deposit rate of its predecessor.
    We preliminarily determine that Gidasa is the successor-in-interest 
to Maktas. In its February 12, 2003, submission, Gidasa provided 
evidence that production continues with the same equipment, the same 
workers, the same raw materials purchased from the same suppliers, and 
the same production process. Gidasa also provided evidence that it 
continues to sell the same products to the same customers to which 
Maktas previously sold. Moreover, Gidasa has provided evidence that 
substantially all management and employees are the same as when the 
factory was managed by Maktas. Documentation attached to Gidasa's 
February 12, 2003, submission supports its claims that the acquisition 
of Maktas resulted in little or no changes in either production 
facilities, supplier relationships, customer base, or management. This 
documentation consisted of: (1) Maktas and Gidasa's price lists, 
supplier lists, distributer lists, sales history, and product catalogs; 
(2) Sabanci, Maktas, and Gidasa's organization charts; and (3) 
documents supporting transfer of trademarks, equipment, and real 
property from Maktas to Gidasa. The documentation described above 
demonstrates that (i) substantially all employees of Maktas, including 
management, have been transferred to Gidasa, (ii) the business was sold 
as a going concern, and (iii) there was little to no change in 
management structure, supplier relationships, production facilities, or 
customer base. In its March 5, 2003, submission, petitioners objected 
to an expedited treatment of these changed circumstances reviews. 
However, petitioners offered no compelling reasons for the Department 
not to proceed with these changed circumstances reviews on an expedited 
basis.
    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 
Gidasa has provided prima facie evidence that it is the successor-in-
interest to Maktas.
    For the forgoing reasons, we preliminarily determine that Gidasa is 
the successor-in-interest to Maktas and should receive the same 
antidumping and countervailing duty rates with respect to certain pasta 
from Turkey as the former Maktas.

Public Comment

    Any interested party may request a hearing within 30 days of 
publication of this notice. Any hearing, if requested, will be held no 
later than 44 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 30 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 37 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 these changed circumstances reviews,

[[Page 16763]]

including the results of its analysis of issues raised in any written 
comments.
    We are issuing and publishing these determinations and notice in 
accordance with sections 751(b) and 777(i)(1) of the Act and sections 
19 CFR 351.216 and 351.221.

    Dated: March 31, 2003.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 03-8410 Filed 4-4-03; 8:45 am]
BILLING CODE 3510-DS-S