[Federal Register Volume 68, Number 118 (Thursday, June 19, 2003)]
[Notices]
[Pages 36767-36769]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-15524]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-831]


Fresh Garlic From the People's Republic of China: Final Results 
of Antidumping Duty New Shipper Review

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

ACTION: Notice of final results of the antidumping duty new shipper 
review of fresh garlic from the People's Republic of China.

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SUMMARY: On April 29, 2003, the Department of Commerce published the 
preliminary results of the new shipper review of the antidumping duty 
order on fresh garlic from the People's Republic of China. The period 
of review is November 1, 2001, through April 30, 2002. The review 
covers subject merchandise produced by two companies, of which one, the 
respondent company in this review, exported the merchandise to the 
United States.
    We invited interested parties to comment on the preliminary 
results. Because we received no comments, we have made no changes to 
our preliminary determination that, based on the use of adverse facts 
available, the respondent sold subject merchandise to the United States 
at prices below normal value. The final dumping margin for the new 
shipper review is listed in the ``Final Result of Review'' section 
below.

EFFECTIVE DATE: June 19, 2003.

FOR FURTHER INFORMATION CONTACT: Edythe Artman or Mark Ross, Office of 
AD/CVD Enforcement 3, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
3931 and (202) 482-4794, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On April 29, 2003, the Department of Commerce (the Department) 
published the notice of preliminary results of this new shipper review 
of the antidumping duty order on fresh garlic from the People's 
Republic of China (PRC). See Fresh Garlic from the People's Republic of 
China: Preliminary Results of Antidumping Duty New Shipper Review, 68 
FR 22676 (April 29, 2003) (Preliminary Results). We invited interested 
parties to comment on our preliminary results.

[[Page 36768]]

    We received no comments.
    We have conducted this review in accordance with section 
751(a)(2)(B) of the Tariff Act of 1930, as amended (the Act), and 19 
CFR 351.214 (2001).

Scope of the Order

    The products covered by this antidumping duty order are all grades 
of garlic, whole or separated into constituent cloves, whether or not 
peeled, fresh, chilled, frozen, provisionally preserved, or packed in 
water or other neutral substance, but not prepared or preserved by the 
addition of other ingredients or heat processing. The differences 
between grades are based on color, size, sheathing, and level of decay.
    The scope of this order does not include the following: (a) Garlic 
that has been mechanically harvested and that is primarily, but not 
exclusively, destined for non-fresh use; or (b) garlic that has been 
specially prepared and cultivated prior to planting and then harvested 
and otherwise prepared for use as seed.
    The subject merchandise is used principally as a food product and 
for seasoning. The subject garlic is currently classifiable under 
subheadings 0703.20.0010, 0703.20.0020, 0703.20.0090, 0710.80.7060, 
0710.80.9750, 0711.90.6000, and 2005.90.9700 of the Harmonized Tariff 
Schedule of the United States (HTSUS). Although the HTSUS subheadings 
are provided for convenience and customs purposes, our written 
description of the scope of this order is dispositive. In order to be 
excluded from the antidumping duty order, garlic entered under the 
HTSUS subheadings listed above that is (1) mechanically harvested and 
primarily, but not exclusively, destined for non-fresh use or (2) 
specially prepared and cultivated prior to planting and then harvested 
and otherwise prepared for use as seed must be accompanied by 
declarations to the U.S. Bureau of Customs and Border Protection 
(Customs) to that effect.

Separate Rate

    In the preliminary results, the Department found that Huaiyang 
Hongda Dehydrated Vegetable Company (Hongda) had submitted 
documentation and responses that established an absence of both de jure 
and de facto control by the Chinese government. We preliminarily 
determined that Hongda had met the criteria for the application of a 
separate rate. See Preliminary Results, 68 FR at 22677.
    Since the preliminary results, we have not received any information 
that provides a basis for reconsideration of this determination. 
Therefore, we find that Hongda is entitled to a separate rate for 
purposes of this review.

Use of Adverse Facts Available

    In the preliminary results, we recounted the numerous opportunities 
that we gave Hongda and its supplier to provide the Department with the 
information necessary to calculate dumping margins for sales of its 
merchandise and that of its supplier. We issued an original and three 
supplemental questionnaires to Hongda and requested factors-of-
production information from the supplier, Jin Xiang Jin Ma Fruit and 
Vegetable Products Company, Ltd. (Kima), indirectly through Hongda and 
in a direct mailing to Kima. Nevertheless, we did not receive detailed 
information regarding the sales transactions that took place between 
Kima and Hongda, information regarding the production process of the 
garlic Hongda purchased from Kima, or factors-of-production information 
from Kima.
    In response to the second supplemental questionnaire, Hongda merely 
identified Kima as a company that ``grows and sells garlic'' and stated 
that it ``simply purchased the garlic'' from Kima. In response to the 
third supplemental questionnaire, Hongda claimed, in contradiction to 
an earlier response, that it had taken possession of the garlic 
purchased from Kima and processed it before exporting it to the United 
States. Hongda also stated that Kima was unwilling to provide details 
on its production process or its factors of production. In support of 
its response, Hongda submitted a certification from Kima to the effect 
that it was ``unable'' to provide the requested information. Hongda 
provided no reason for this ``inability'' to respond.
    Following the response to the third supplemental questionnaire, we 
issued a questionnaire directly to Kima in which we requested that it 
respond to the factors-of-production questionnaire. The company did not 
respond to our request.
    Because Hongda did not provide the Department with the information 
necessary to calculate a margin on the overwhelming majority of its 
sales--those involving garlic purchased from Kima, because it did not 
explain why it could not provide the information for those sales, and 
because Kima, an ``interested party'' with respect to these 
transactions, did not provide the requested information, we 
preliminarily determined that the use of facts otherwise available was 
warranted to calculate a margin for all of Hongda's sales pursuant to 
section 776(a)(2) of the Act. See Preliminary Results, 68 FR 22678. 
Furthermore, we found that, by not providing the factors-of-production 
information for the Kima/Hongda transactions, that neither Hongda nor 
Kima acted to the best of its ability in providing the Department with 
the necessary information to calculate a margin. Therefore, pursuant to 
sections 782(e)(3), (4), and (5) of the Act, the Department did not use 
the information reported by Hongda and instead applied total adverse 
facts available to Hongda pursuant to section 776(b) of the Act. See 
Preliminary Results, 68 FR 22679. Furthermore, we corroborated the 
adverse facts-available rate, the rate that is currently applicable to 
all exporters subject to the PRC-wide rate, pursuant to section 776(c) 
of the Act. See Preliminary Results, 68 FR at 22680.
    Since the preliminary results, Hongda has provided no comments on 
our preliminary results and no additional information concerning the 
sales under review. We have received no comments or information from 
other interested parties.
    Therefore, we have no basis to reconsider our preliminary 
determination. According, we are applying adverse facts available to 
the sales of merchandise produced by Hongda or Kima and exported by 
Hongda during the period of review.

Final Result of Review

    As a result of the application of adverse facts available, we find 
that a dumping margin of 376.67 percent exists for the period November 
1, 2001, through April 30, 2002, on Hongda's shipments of fresh garlic 
from the PRC.
    The Department shall determine, and Customs shall assess, 
antidumping duties on all appropriate entries. We will issue 
appropriate assessment instructions directly to Customs within 15 days 
of publication of these final results of review.

Cash-Deposit Requirements

    The following cash-deposit requirements will be effective upon 
publication of the final results of this new shipper review for all 
shipments of the subject merchandise 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 subject 
merchandise grown by Hongda or Jin Xiang Jin Ma Fruit and Vegetable 
Products Co. Ltd. (Kima) and exported by Hongda, the cash-deposit rate 
will be 376.67 percent; (2) for all other subject merchandise exported 
by Hongda, the cash-deposit rate will be the PRC countrywide rate, 
which is 376.67 percent; (3) for all other PRC exporters

[[Page 36769]]

which have not been found to be entitled to a separate rate, the cash-
deposit rate will be the PRC countrywide rate; and (4) for all non-PRC 
exporters of subject merchandise that have not been assigned an 
individual rate, the cash-deposit rate 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.

Notification

    Bonding is no longer permitted to fulfill security requirements for 
shipments from Hongda of fresh garlic from the PRC entered, or 
withdrawn from warehouse, for consumption in the United States on or 
after the publication of this notice in the Federal Register.
    This notice serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) 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 Department'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 disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the return/destruction of APO material 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 
sanctions.
    We are issuing and publishing these final results of review in 
accordance with sections 751(a)(2)(B) and 777(i) of the Act and 19 CFR 
351.214(i)(1) and 351.210(c).

    Dated: June 13, 2003.
Jeffrey May,
Acting Assistant Secretary for Import Administration.
[FR Doc. 03-15524 Filed 6-18-03; 8:45 am]
BILLING CODE 3510-DS-P