[Federal Register Volume 68, Number 234 (Friday, December 5, 2003)]
[Notices]
[Pages 68028-68030]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-30263]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-848]


Notice of Final Rescission of Antidumping Duty New Shipper 
Review: Freshwater Crawfish Tail Meat from the People's Republic of 
China

AGENCY: Import Administration, International Trade Administration, U.S. 
Department of Commerce.
SUMMARY: On September 5, 2003, the Department published a preliminary 
intent to rescind the new shipper review of Zhoushan Huading Seafood 
Co., Ltd. (Zhoushan Huading) under the antidumping duty order on 
freshwater crawfish tail meat from the People's Republic of China (68 
FR 52745). The review covers one sale of the subject merchandise 
entered into the United States during the period September 1, 2001 
through August 31, 2002.
    Based on our analysis of the record, including factual information 
obtained since the preliminary notice of intent to rescind, the 
Department has determined that Zhoushan Huading's new shipper sale is 
not bona fide and, as a result, we are rescinding this new shipper 
review. See ``Rescission of New Shipper Review'' section below.

EFFECTIVE DATE:  December 5, 2003.

FOR FURTHER INFORMATION CONTACT: Douglas Kirby or Thomas Gilgunn, 
Office of AD/CVD Enforcement VII, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington D.C. 20230; telephone: (202) 482-
3782 or (202) 482-4236, respectively.

SUPPLEMENTARY INFORMATION:

Background

    We published the preliminary notice of intent to rescind this new 
shipper review on September 5, 2003. See Freshwater Crawfish Tail Meat 
From the People's Republic of China: Preliminary Notice of Intent to 
Rescind New Shipper Administrative Review, 68 FR 52745 (Preliminary 
Notice). In the Preliminary Notice, the Department found that the sale 
made by Zhoushan Huading in this new shipper review was not bona fide 
based on the following: 1) the price and quantity for Zhoushan 
Huading's sale of crawfish tail meat were atypical vis-a-vis other 
exports from the PRC of the subject merchandise into the United States 
during the period of review; 2) there were conflicting accounts as to 
who purchased the crawfish tail meat and who paid Zhoushan Huading for 
the shipment; 3) there remained uncertainty in regard to the commercial 
reasonableness of the sale; 4) there were inconsistencies in the terms 
of sale; and, 5) the Department was unable to establish that the 
importing parties were actual commercial entities. See also Memorandum 
to Barbara E. Tillman, Acting Deputy Assistant Secretary for Import 
Administration, Group III: Freshwater Crawfish Tail Meat from the 
People's Republic of China: Analysis of Zhoushan Huading's New Shipper 
Transaction, dated August 28, 2003 (Zhoushan Huading Memo). A public 
version of this memorandum is on file in the Central Records Unit, room 
B-099 of the main Commerce Building.
    On September 2, 2003, the Department issued a fourth supplemental 
questionnaire to Zhoushan Huading, and on September 3, 2003, issued 
supplemental questionnaires to both the reported buyer and the importer 
of record in order to clarify the terms of sale and payment 
documentation for the new shipper sale under review. On September 12, 
2003, Zhoushan Huading, the reported buyer, and the importer of record 
submitted their responses to the Department's supplemental 
questionnaires. Their responses are discussed in the ``Analysis of the 
Bona Fides of the New Shipper Sale'' section below.

Comments

    On October 6, 2003, petitioners\1\ submitted comments. On October 
14, 2003, Zhoushan Huading submitted rebuttal comments. The parties 
raised only one issue in their briefs: ``Whether The New Shipper Review 
of Zhoushan Huading Should Be Rescinded for Lack of a Bona Fide Sale.'' 
All arguments raised in the case and rebuttal briefs filed by parties 
to this new shipper review are addressed in the Issues and Decision 
Memorandum for the Final Rescission of the New Shipper Review of 
Freshwater Crawfish Tail Meat from the People's Republic of China for 
Zhoushan Huading Seafood Co., Ltd., dated November 25, 2003 (Decision 
Memo), which is hereby adopted by this notice. Parties can find a 
complete discussion of all issues raised in this review and the 
corresponding recommendation in this public memorandum, which is on 
file in the Central Records Unit, room B-099 of the main Commerce 
Building. In addition, a complete version of the Decision Memo can be 
accessed directly on the internet at http://ia.ita.doc.gov. The paper 
copy and electronic version of the Decision Memo are identical in 
content.
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    \1\ The Crawfish Processors Alliance, its members (together with 
the Louisiana Department of Agriculture and Forestry and Bob Odom, 
Commissioner), and several individual crawfish producers, 
collectively called the Domestic Parties.
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Scope of the Antidumping Duty Order

    The product covered by this order is freshwater crawfish tail meat, 
in all its forms (whether washed or with fat on, whether purged or 
unpurged), grades, and sizes; whether frozen, fresh, or chilled; and 
regardless of how it is packed, preserved, or prepared. Excluded from 
the scope of the order are live crawfish and other whole crawfish, 
whether boiled, frozen, fresh, or chilled. Also excluded are saltwater 
crawfish of any type, and parts thereof. Freshwater crawfish tail meat 
is currently classifiable in the Harmonized Tariff Schedule of the 
United States (HTS) under item numbers 1605.40.10.10 and 1605.40.10.90, 
which are the new HTS numbers for prepared foodstuffs, indicating 
peeled crawfish tail meat and other, as introduced by U.S. Customs and 
Border Protection (CBP) in 2000, and HTS items 0306.19.00.10 and 
0306.29.00, which are reserved for fish and crustaceans in general. The 
HTS subheadings are provided for convenience and CBP purposes only. The 
written description of the scope of this order is dispositive.

Analysis of the Bona Fides of the New Shipper Sale

    The Department has not acquired nor received any additional 
information that would alter our preliminary determination that the 
extremely high price and the unusually low quantity of

[[Page 68029]]

Zhoushan Huading's new shipper sale were not consistent with other 
imports of freshwater crawfish tail meat entered into the U.S. during 
the period of review. See Preliminary Notice; see also Zhoushan Huading 
Memo.
    Furthermore, since the publication of the Preliminary Notice, the 
Department solicited additional information through the issuance of 
supplemental questionnaires to all three parties that were involved in 
this new shipper sale. The Department's goal in seeking additional 
information was to address the issues identified in the Preliminary 
Notice, particularly, who paid whom, and to seek clarification of the 
terms of sale for the shipment of subject merchandise under review. All 
parties responded to the supplemental questionnaires issued.
    In regard to payment information, both Zhoushan Huading and the 
reported buyer, in their questionnaire responses, provided documents 
demonstrating a wire transfer from the reported buyer to Zhoushan 
Huading. Both responses also provide a copy of a cashier's check as 
evidence of payment by the importer of record to the reported buyer. 
This documentation overcomes the uncertainty regarding who paid whom 
for the merchandise, and establishes that Zhoushan Huading was paid in 
the manner, and by the party, identified in the questionnaire 
responses. However, this documentation also provides evidence that the 
sale was commercially unreasonable, due to the fact that the dollar 
amounts on the cashier's check and the wire transfer documentation are 
identical. Therefore, since the amounts paid by the reported buyer and 
the importer of record are identical, the record indicates that the 
reported buyer sold Zhoushan Huading's shipment of subject merchandise 
to the importer of record at a loss, i.e., by selling the subject 
merchandise for the exact same dollar amount as they purchased it for, 
the reported buyer must have absorbed all of the administrative and 
selling costs associated with executing both transactions (the purchase 
and the sale).
    Moreover, prior to the publication of the Preliminary Notice, as 
part of our analysis of whether the sale was commercially reasonable, 
we issued supplemental questionnaires that asked the reported buyer and 
the importer of record to provide information on the commercial 
structure of their business, and their business relationship to each 
other. The Department also attempted to gather information from the 
importer of record in regard to the identity of its customers and 
supporting sales documentation. The Department also asked Zhoushan 
Huading for this information. None of the requested information was 
provided by Zhoushan Huading, the reported buyer, or the importer of 
record.
    In addition, Zhoushan Huading, in its September 12, 2003 
supplemental questionnaire response, stated which party was responsible 
for all inland freight, brokerage and handling, and international 
freight expenses related to the new shipper sale under review. However, 
the bill of lading provided by Zhoushan Huading in its January 6, 2003, 
questionnaire response contradicts the terms of sale as reported by 
Zhoushan Huading, and indicates that these costs may have been borne by 
a party other than the one Zhoushan Huading indicated. As such, without 
reliable information establishing the terms of sale, including which 
party was responsible for which costs, it is not possible for the 
Department to determine that Zhoushan Huading's sale is a commercially 
reasonable transaction. Some of the information concerning the party 
responsible for movement expenses is business proprietary. This 
information is discussed more fully in a Memorandum to the File: 
Crawfish Tail Meat from the People's Republic of China: Analysis of 
Zhoushan Huading's Reported Terms of Sale; dated November 25, 2003.
    Having reviewed the totality of circumstances surrounding this 
sale, we conclude that Zhoushan Huading's new shipper sale was 
commercially unreasonable and therefore not bona fide for the following 
reasons: 1) the price was extremely high and the quantity was unusually 
low vis-a-vis other imports from the PRC of the subject merchandise 
into the United States during the period of review; 2) the merchandise 
was apparently resold by the reported buyer at a loss; and, 3) Zhoushan 
Huading provided contradictory information and documentation regarding 
the terms of sale and movement expenses.

Rescission of New Shipper Review

    Because we find the new shipper sale not bona fide, and because 
this was the only sale made during the new shipper review period, there 
is no bona fide sale to review. As such, we are rescinding this new 
shipper review. Accordingly, the PRC-wide antidumping duty margin of 
223.01 percent still applies for shipments of freshwater crawfish tail 
meat produced and/or exported by Zhoushan Huading for the period 
September 1, 2001 through August 31, 2002 and beyond. The Department 
will issue cash deposit and assessment instructions directly to CBP.

Cash Deposits

    Bonding will no longer be permitted to fulfill security 
requirements for shipments from Zhoushan Huading of freshwater crawfish 
tail meat 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. Effective upon publication of these 
final results for this new shipper review, we will instruct CBP to 
continue the suspension of liquidation of entries of freshwater 
crawfish tail meat that is produced and/or exported by Zhoushan 
Huading, and entered on or after the date of publication of these final 
results. For entries of freshwater crawfish tail meat that are produced 
and/or exported by Zhoushan Huading, cash deposits will be required at 
the PRC-wide rate in effect on the date of entry. The PRC-wide rate 
currently in effect is 223.01 percent. There are no changes to the 
rates applicable to any other company under this order.

Assessment of Antidumping Duties

    The Department shall determine, and CBP shall assess, antidumping 
duties on all appropriate entries. Since we are rescinding this new 
shipper review, the PRC-wide rate of 223.01 percent applies to all 
exports of freshwater crawfish tail meat produced and/or exported by 
Zhoushan Huading. The Department will issue appropriate assessment 
instructions directly to CBP within 15 days of publication of this 
notice of rescission of antidumping duty new shipper review.

Notification to Interested Parties

    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 Secretary's presumption that 
reimbursement of antidumping duties occurred and subsequent assessment 
of double antidumping duties.
    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with section 351.305(a)(3) of the Department's 
regulations. Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply

[[Page 68030]]

with the regulations and the terms of an APO is a sanctionable 
violation.
    This new shipper review and notice are in accordance with sections 
751(a)(2)(B) and 777(i)(1) of the Act.

    Dated: November 25, 2003.
James J. Jochum,
Assistant Secretary Import Administration.
[FR Doc. 03-30263 Filed 12-4-03; 8:45 am]
BILLING CODE 3510-DS-S