[Federal Register Volume 68, Number 221 (Monday, November 17, 2003)]
[Notices]
[Pages 64856-64857]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-28672]


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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.

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SUMMARY: The Department of Commerce has received information sufficient 
to warrant the 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 Tat Konserve Sanayi A.S. is the successor-in-interest to 
Pastavilla Makarnacilik Sanayi ve Ticaret A.S., for purposes of 
determining antidumping and countervailing duty liabilities. Interested 
parties are invited to comment on these preliminary results.

EFFECTIVE DATE: November 17, 2003.

FOR FURTHER INFORMATION CONTACT: Melanie Brown (Countervailing) or 
Lyman Armstrong (Antidumping), 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) 482-4987 or (202) 482-3601, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On July 24, 1996, the Department of Commerce (``the Department'') 
published in the Federal Register the antidumping and countervailing 
duty orders on pasta from Turkey (61 FR 38545-38547). On September 24, 
2003, Tat Konserve Sanayi A.S. (``Tat''), submitted information stating 
that Tat is the successor-in-interest to Pastavilla Makarnacilik Sanayi 
ve Ticaret A.S. (``Pastavilla''), and, as such, Tat is entitled to 
receive the same antidumping and countervailing duty treatment accorded 
Pastavilla.

Scope of Review

    Imports covered by this review 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 this review 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 Rulings

    The Department has issued the following scope ruling to date:
    (1) On October 26, 1998, the Department self-initiated a scope 
inquiry to determine whether a package 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

[[Page 64857]]

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 of Changed Circumstances

    In November 2002, Koc Group, a Turkish conglomerate, and 
Pastavilla's parent company, announced its intent to reorganize and 
merge its four food-producing subsidiaries. On June 25, 2003, the 
Shareholders' General Assemblies for Tat and Pastavilla approved the 
merger. The merger plan called for three of the Koc Group companies to 
be merged into a fourth Koc Group company, Tat, a tomato products 
producer. The companies merged into Tat included: Pastavilla, a pasta 
producer; Maret Marmara Besicilik ve Et Sanayi ve Ticaret A.S., a meat 
processor; and Sek S[uuml]t Endustrisi Kurumu, a dairy products 
producer. On that same day, Tat's General Assembly approved amendments 
to Tat's articles of incorporation to include the operations of the 
merged companies. Therefore, the reorganization of the Koc companies 
was completed on June 25, 2003.
    In the course of this reorganization, Tat acquired Pastavilla as an 
ongoing concern, i.e., Tat took over Pastavilla's factory, operations, 
management, trade names (Pastavilla; Lunch & Dinner; and Kartal), and 
also all of Pastavilla's liabilities. Tat then began producing pasta 
using the same products, from the same suppliers, the same personnel 
and equipment, and selling them under the same brand names, to the same 
customers through the same channels, using the same management team as 
its predecessor, Pastavilla. On September 24, 2003, Tat advised the 
Department of the details of the reorganization, and requested that the 
Department conduct a changed circumstances review to determine that Tat 
is the successor-in-interest to Pastavilla.
    Based on the information provided by Tat, and in accordance with 
section 751(b)(1) of the Tariff Act of 1930, as amended (``the Act'') 
and 19 CFR 351.216(d) of the Department's regulations, the Department 
has determined that there is a sufficient basis to initiate a changed 
circumstances review to determine whether Tat is the successor-in-
interest to Pastavilla.

Preliminary Results

    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 (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 20460. 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 Tat is the successor-in-interest to 
Pastavilla. In its September 24, 2003 submission, Tat provided evidence 
illustrating that its production continues with the same equipment, the 
same management, the same raw materials purchased from the same 
suppliers, and the same production process, as Pastavilla. Tat also 
provided evidence that it continues to sell the same products to the 
same customers to which Pastavilla previously sold. Documentation 
attached to Tat's September 24, 2003 submission supports its claims 
that the acquisition of Pastavilla resulted in little or no changes in 
the production facilities, supplier relationships, customer base, or 
management. This documentation consisted of: (1) An independent 
valuation report which included, inter alia, Pastavilla's land, factory 
and trademark names; (2) Pastavilla's and Tat's Shareholders' General 
Assemblies and Board of Directors approval of the merger; (3) the 
merger agreement; (4) amendments to Tat's articles of incorporation; 
(5) Tat and Pastavilla's price lists; (6) Pastavilla's supplier lists, 
including Tat's list of affiliates; (6) Pastavilla's distributer lists; 
(7) Pastavilla, Koc Group, and Tat's sales history, and product 
catalogs; and (8) other documents supporting the transfer of assets and 
liabilities from Pastavilla to Tat. The documentation described above 
demonstrates that: (1) Substantially all employees of Pastavilla, 
including management, have been transferred to Tat; (2) the business 
was sold as a going concern; and (3) there was little to no change in 
management structure, supplier relationships, production facilities, or 
customer base.
    When it concludes that expedited action is warranted, the 
Department may publish the notice of initiation and preliminary results 
in a changed circumstances review concurrently. See 19 CFR 
221(c)(3)(ii). The Department has determined that such action is 
warranted in this instance because Tat has provided prima facie 
evidence that it is the successor-in-interest to Pastavilla.
    For these reasons, we preliminarily find that Tat is the successor-
in-interest to Pastavilla and, thus, should receive the same 
antidumping and countervailing duty treatment with respect to certain 
pasta from Turkey as the former Pastavilla.

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 this changed circumstances review, in accordance with 19 CFR 
351.216(e), including the results of its analysis of issues raised in 
any written comments.
    We are issuing and publishing these results and notice in 
accordance with sections 751(b)(1) and 777(i)(1) and (2) of the Act and 
section 19 CFR 351.216.

    Dated: November 10, 2003.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. 03-28672 Filed 11-14-03; 8:45 am]
BILLING CODE 3510-DS-P