[Federal Register Volume 69, Number 87 (Wednesday, May 5, 2004)]
[Notices]
[Pages 25060-25062]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10234]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-863]


Honey From the People's Republic of China: Final Results of First 
Antidumping Duty Administrative Review

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

ACTION: Notice of final results of first antidumping duty 
administrative review.

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SUMMARY: On December 16, 2003, the Department published the preliminary 
results of the first administrative review of the antidumping duty 
order on honey from the People's Republic of China (PRC) (68 FR 69988). 
This review covers four exporters or producer/exporters, (1) Zhejiang 
Native Produce and Animal By-Products Import & Export Corp. a.k.a. 
Zhejiang Native Produce and Animal By-Products Import and Export Group 
Corporation (Zhejiang) and its unaffiliated suppliers; (2) Henan Native 
Produce and Animal By-Products Import & Export Company (Henan); (3) 
High Hope International Group Jiangsu Foodstuffs Import and Export 
Corp. (High Hope); and (4) Kunshan Foreign Trade Company (Kunshan), and 
exports of the subject merchandise to the United States during the 
period February 10, 2001, through November 30, 2002.\1\
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    \1\ As stated in the Preliminary Results, the Department 
rescinded the administrative reviews of five exporters or producer/
exporters. See Honey from the People's Republic of China: Final 
Rescission, in Part, of Antidumping Duty Administrative Review, 68 
FR 44045 (July 25, 2003).
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    Based on our analysis of the record, including factual information 
obtained since the preliminary results, we have made changes to 
Zhejiang's margin calculations to adjust the inflators used to achieve 
a surrogate raw honey value contemporaneous with the period of review 
and to adjust our calculation of net U.S. prices. We also adjusted the 
surrogate value for labor to reflect the updated PRC regression-based 
wages calculated by the Department. Therefore, the final results differ 
from the preliminary results. See ``Final Results of Review'' section 
below.

EFFECTIVE DATE: May 5, 2004.

FOR FURTHER INFORMATION CONTACT: Angelica Mendoza or Brandon Farlander 
at (202) 482-3019 or (202) 482-0182, respectively; Antidumping and 
Countervailing Duty Enforcement Group III, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    We published in the Federal Register the preliminary results of the 
first administrative review on December 16, 2003. See Notice of 
Preliminary Results of First Administrative Antidumping Duty Review: 
Honey from the People's Republic of China, 68 FR 69988 (December 16, 
2003) (Preliminary Results).
    The period of review (POR) is February 10, 2001, through November 
30, 2002. We invited parties to comment on our Preliminary Results. We 
received case briefs from the respondent, Zhejiang, and the American 
Honey Producers Association and the Sioux Honey Association 
(collectively, petitioners), on January 21, 2004.\2\ We received 
rebuttal briefs from the same parties on January 27, 2004.\3\ On 
January 28, 2004, we held a public hearing for this review.
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    \2\ On January 28, 2004, Zhejiang submitted a letter of 
objection to new factual information contained in petitioners' 
rebuttal brief. Per the Department's letter dated February 13, 2004, 
petitioners re-filed their rebuttal brief on February 18, 2004.
    \3\ In their rebuttal brief dated January 28, 2004, petitioners 
alleged that Zhejiang had submitted new factual information in its 
case brief. See Petitioners' Rebuttal Brief re-filed on February 18, 
2004 at 2. Per the Department's letter dated February 13, 2004, 
Zhejiang re-filed its case brief on February 18, 2004.
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Scope of the Antidumping Duty Order

    The products covered by this order are natural honey, artificial 
honey containing more than 50 percent natural honey by weight, 
preparations of natural honey containing more than 50 percent natural 
honey by weight, and flavored honey. The subject merchandise includes 
all grades and colors of honey whether in liquid, creamed, comb, cut 
comb, or chunk form, and whether packaged for retail or in bulk form.
    The merchandise subject to this review is currently classifiable 
under subheadings 0409.00.00, 1702.90.90, and 2106.90.99 of the 
Harmonized Tariff Schedule of the United States (HTSUS). Although the 
HTSUS subheadings are provided for convenience and the U.S. Customs and 
Border Protection (CBP) purposes, the Department's written description 
of the merchandise under order is dispositive.

Analysis of Comments Received

    All issues raised in the briefs are addressed in the Issues and 
Decision Memorandum, which is hereby adopted by this notice. A list of 
the issues raised, all of which are in the Issues and Decision 
Memorandum, is attached to this notice as Appendix I. Parties can find 
a complete discussion of all issues raised in the briefs and the 
corresponding recommendations in this public memorandum which is on 
file in the Central Records Unit (CRU), room B-099 of the main 
Department building. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed directly on the Web at http://ia.ita.doc.gov. The paper copy and electronic version of the Issues and 
Decision Memorandum are identical in content.

Changes Since the Preliminary Results

    Based on the comments received from the interested parties, we have 
made changes to the margin calculation for Zhejiang. For a discussion 
of these changes, see Issues and Decision

[[Page 25061]]

Memorandum. For business proprietary details of our analysis of the 
changes described below to our preliminary margin calculations, see 
Memorandum to the File regarding Analysis of the Data Submitted by 
Zhejiang Native Produce and Animal By-Products Import & Export Corp. 
a.k.a. Zhejiang Native Produce and Animal By-Products Import and Export 
Group Corporation (Zhejiang) in the Final Results of the First 
Administrative Review of the Antidumping Duty Order on Honey from the 
People's Republic of China (April 28, 2004) (Final Analysis Memo) and 
Memorandum to the File regarding Final Results of the First 
Administrative Review of the Antidumping Duty Order on Honey from the 
People's Republic of China; Factors of Production Valuation (April 28, 
2004) (Final FOP Memo).
    For the final results, we adjusted our inflation calculations used 
to achieve a surrogate raw honey value contemporaneous with the POR and 
adjusted our calculation of net U.S. prices. We also adjusted the 
surrogate value for labor to reflect the updated PRC regression-based 
wages calculated by the Department. See Issues and Decision Memorandum 
at Comments 4 and 6, and Final FOP Memo at 2 and Attachments 1-4.

The PRC-Wide Rate and Application of Facts Otherwise Available

    The Department did not receive comments on its preliminary 
determination to apply adverse facts available (AFA) to the PRC-wide 
entity (including Kunshan, Henan, and High Hope). Therefore, we have 
not altered our decision to apply total AFA to the PRC-wide entity 
(including Kunshan, Henan, and High Hope) for these final results, in 
accordance with sections 776(a)(2)(A) and (B), as well as section 
776(b) of the Tariff Act of 1930, as amended (the Act). For a complete 
discussion of the Department's decision to apply total AFA, see 
Preliminary Results at 69991 and 69992. Furthermore, as stated in the 
Preliminary Results, the Department determined that because Kunshan, 
Henan, and High Hope did not respond to our requests for information 
regarding separate rates, that these companies do not merit separate 
rates. See, e.g., Natural Bristle Paint Brushes and Brush Heads from 
the People's Republic of China; Preliminary Results of Antidumping Duty 
Administrative Review, 61 FR 57389 (November 6, 1996); Final 
Determination of Sales at Less than Fair Value: Certain Helical Spring 
Lock Washers from China, 58 FR 48833 (September 20, 1993); and Final 
Determination of Sales at Less than Fair Value: Certain Compact Ductile 
Iron Waterworks Fittings and Accessories Thereof from the People's 
Republic of China, 58 FR 37908 (July 14, 1993). Consequently, 
consistent with the statement in our notice of initiation, we 
preliminarily found that, because these companies did not qualify for 
separate rates, they were deemed to be part of the PRC-entity. See 
Initiation of Antidumping and Countervailing Duty Administrative Review 
and Requests for Revocations in Part, 68 FR 3009 (January 22, 2003) at 
3011 n.2. See also Preliminary Results at 6990.
    As above stated, the PRC-wide entity did not respond to our 
requests for information. Because the PRC-wide entity did not respond 
to our request for information, we find it necessary, under sections 
776(a)(2) and 776(b) of the Act, to use AFA as the basis for these 
final results of review for the PRC-wide entity. In accordance with the 
Department's practice, we have assigned to the PRC-wide entity 
(including Kunshan, Henan, and High Hope) the rate of 183.80 percent as 
AFA. See, e.g., Rescission of Second New Shipper Review and Final 
Results and Partial Rescission of First Antidumping Duty Administrative 
Review: Brake Rotors from the People's Republic of China, 64 FR 61581, 
61584 (November 12, 1999). This rate is the highest dumping margin from 
any segment of this proceeding and was established in the less-than-
fair-value investigation based on information contained in the 
petition. See Notice of Final Determination of Sales at Less Than Fair 
Value; Honey from the PRC, 66 FR 50608 (October 4, 2001) and 
accompanying Issues and Decision Memorandum (Final Determination). See 
also Notice of Amended Final Determination of Sales at Less Than Fair 
Value and Antidumping Duty Order; Honey From the People's Republic of 
China, 66 FR 63670 (December 10, 2001). As discussed below, this rate 
has been corroborated.

Corroboration of Secondary Information Applied as AFA

    Section 776(c) of the Act requires that, when the Department relies 
on secondary information for purposes of facts available, the 
Department shall corroborate such information, to the extent 
practicable, from independent sources. To be considered corroborated, 
information must be found to be both reliable and relevant. As stated 
above, we are applying as AFA the highest rate from any segment of the 
proceeding. See Final Determination. The information upon which the AFA 
rate is based in the current review was corroborated in the final 
determination and revisited in the preliminary results. See Preliminary 
Results at 69991 and 69992, and Memorandum to the File, dated December 
10, 2003, placing the Memorandum to Richard O. Weible, Office Director, 
The Use of Facts Available for the PRC-wide entity; and Corroboration 
of Secondary Information, dated May 4, 2001 (AFA & Corroboration Memo) 
on the record of this administrative review. No information has been 
presented in the current review that calls into question the 
reliability of this information. Thus, the Department finds that the 
information is reliable. Following the methodology of our corroboration 
analysis from the less-than-fair-value (LTFV) investigation, we 
compared the petition information to information on the record of this 
proceeding. We find that the petition information is reliable when 
compared to the range of Zhejiang's reported gross unit prices for 
honey it sold to the United States during the current POR. See AFA & 
Corroboration Memo at 5 and Exhibit 7 of Zhejiang's July 18, 2003, 
submission. Moreover, following the methodology of our corroboration 
analysis from the LTFV investigation, the highest calculated NV for 
Zhejiang (calculated as a separate NV for each of its two processed 
honey suppliers) is comparable to the NV relied on by petitioners to 
calculate the petition rate. See AFA & Corroboration Memo at 6 and the 
Margin Calculation Output for Zhejiang, dated December 10, 2003.\4\
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    \4\ Following the methodology of our corroboration analysis from 
the less than fair value investigation, we compared the petition 
information to information on the record of this proceeding. We find 
that the petition information is both reasonable and reliable when 
compared to the range of Zhejiang's reported gross unit prices for 
honey it sold to the United States during the current POR. See AFA & 
Corroboration Memo at 5 and Exhibit 7 of Zhejiang's July 18, 2003, 
submission. Moreover, following the methodology of our corroboration 
analysis from the LTFV investigation, the highest calculated NV for 
Zhejiang (calculated as a separate NV for each of its two processed 
honey suppliers) is comparable to the NV relied on by petitioners to 
calculate the petition rate. See AFA & Corroboration Memo at 6 and 
the Margin Calculation Output for Zhejiang, dated April 28, 2004.
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    With respect to the relevance aspect of corroboration, the 
Department will consider information reasonably at its disposal as to 
whether there are circumstances that would render a margin irrelevant. 
See Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, 
from Japan, and Tapered Roller Bearings, Four Inches or Less in Outside 
Diameter, and Components Thereof, from Japan; Preliminary Results of 
Antidumping Duty Administrative Reviews and

[[Page 25062]]

Partial Termination of Administrative Reviews, 61 FR 57391, 57392 
(November 6, 1996) (TRBs). Where circumstances indicate that the 
selected margin is not appropriate as AFA, the Department will 
disregard the margin and determine an appropriate margin. See TRBs at 
57392. See also Fresh Cut Flowers from Mexico; Final Results of 
Antidumping Duty Administrative Review, 61 FR 6812, 6814 (February 22, 
1996) (disregarding the highest margin in the case as best information 
available because the margin was based on another company's 
uncharacteristic business expense resulting in an extremely high 
margin). Similarly, the Department does not apply a margin that has 
been discredited. See D & L Supply Co. v. United States, 113 F.3d 1220, 
1221 (Fed. Cir. 1997) (the Department will not use a margin that has 
been judicially invalidated). The rate used is the rate currently 
applicable to all exporters subject to the PRC-wide rate. Further, as 
noted above, there is no information on the record that the application 
of this rate would be inappropriate in this administrative review or 
that the margin is not relevant. Therefore, we find that the 
information is relevant. Accordingly, the Department determines that 
the PRC-wide entity rate of 183.80 is, to the extent practicable, 
corroborated within the meaning of section 776(c) of the Act.

Final Results of Review

    We determine that the following antidumping duty margins exist:

------------------------------------------------------------------------
                                                              Margin
             Exporter                        POR             (percent)
------------------------------------------------------------------------
Zhejiang Native Produce & Animal       02/10/01-11/30/02           68.35
 By-Products Import & Export
 Corporation a.k.a. Zhejiang
 Native Produce & Animal By-
 Products Import & Export Group
 Corporation......................
PRC-wide Entity (including             02/10/01-11/30/02          183.80
 Kunshan, Henan, and High Hope)...
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    For details on the calculation of the antidumping duty weighted-
average margin for Zhejiang, see the Final Analysis Memo, dated April 
28, 2004. A public version of this memorandum is on file in the CRU.

Cash Deposit Requirements

    The following deposit requirements will be effective upon 
publication of these final results for this administrative review for 
all shipments of honey from the PRC, entered, or withdrawn from 
warehouse, for consumption on or after the date of publication, as 
provided by section 751(a)(2)(c) of the Act: (1) For Zhejiang, the cash 
deposit rate will be the rate listed above under the ``Final Results of 
Review'' section; (2) for previously-reviewed PRC and non-PRC exporters 
with separate rates, the cash deposit rate will be the company-specific 
rate established for the most recent period; (3) for all other PRC 
exporters which do not have a separate rate, including the exporters 
named as part of the PRC-wide entity above, the cash deposit rate will 
be the PRC-wide entity rate, 183.80 percent; and (4) for all other non-
PRC exporters of the subject merchandise, the cash deposit rate will be 
the rate applicable to the PRC exporter that supplied that non-PRC 
exporter. These deposit requirements shall remain in effect until 
publication of the final results of the next administrative review.

Assessment of Antidumping Duties

    The Department shall determine, and CBP shall assess, antidumping 
duties on all appropriate entries. For assessment purposes for 
Zhejiang, we do not have the information to calculate entered value 
because Zhejiang was unable to supply importer-specific information for 
the subject merchandise.\5\ Accordingly, we have calculated customer-
specific duty assessment rates for Zhejiang by aggregating the dumping 
margins calculated for all U.S. sales to each customer and dividing 
this amount by the total quantity of those sales. We will direct CBP to 
assess the resulting rates or the entered CBP quantity for each of the 
importer's entries during the POR. For all other entries, we will 
direct CBP to assess the resulting assessment rates against the CBP 
values for the subject merchandise on each of the exporter's entries 
during the POR. In accordance with Sec.  351.106(c)(2), we will 
instruct CBP to liquidate any entries without regard to antidumping 
duties for which the assessment rate is de minimis. The Department will 
issue appropriate assessment instructions directly to CBP within 15 
days of publication of the final results of review.
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    \5\ Rather, Zhejiang reported total sales value. See Zhejiang's 
July 18, 2003, submission at Exhibit 7.
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Notification to Importers

    This notice serves as a final reminder to importers of their 
responsibility under Sec.  351.402(f) of the Department's regulations 
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 with the regulations and the terms of an 
APO is a sanctionable violation.
    This administrative review and notice are in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: April 28, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.

Appendix I--List of Issues

Comment 1: Costs Incurred by Zhejiang on Certain U.S. Sales
Comment 2: Costs Associated with Shipping Honey Samples to U.S. 
Customers
Comment 3: Surrogate Value Source for Raw Honey
Comment 4: Calculation of Inflators for the Raw Honey Surrogate 
Value
Comment 5: Surrogate Source for Factory Overhead, Selling, General 
and Administrative (SG&A), and Profit Ratios
Comment 6: Deduction of Bank Fees from U.S. price
Comment 7: Exclusion of Certain Import Data in Calculating Certain 
Surrogate Values

[FR Doc. 04-10234 Filed 5-4-04; 8:45 am]
BILLING CODE 3510-DS-P