[Federal Register Volume 69, Number 210 (Monday, November 1, 2004)]
[Notices]
[Pages 63364-63366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-2958]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-851]


Certain Preserved Mushrooms From the People's Republic of China: 
Final Results of the Seventh Antidumping Duty New Shipper Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On July 28, 2004, the Department of Commerce (``the 
Department'') published the preliminary results of the seventh new 
shipper review of the antidumping duty order on certain preserved 
mushrooms from the People's Republic of China (``PRC''). See Certain 
Preserved Mushrooms from the People's Republic of China: Preliminary 
Results of the Seventh New Shipper Review, 69 FR 45012 (July 28, 2004) 
(``Preliminary Results''). This review examined one exporter Guangxi 
Hengxian Pro-Light Foods, Inc. (``Guangxi Hengxian''), which the 
Department found qualified for a separate rate. The period of review 
(``POR'') is February 1, 2003, through July 31, 2003. We gave 
interested parties the opportunity to comment on our preliminary 
results.
    Based on the comments received from the interested parties, we have 
made changes in the margin calculation for the respondent in this 
review (see section entitled ``Changes Since the Preliminary Results'' 
below for details). However, these changes did not impact the overall 
weighted-average margin calculated in the preliminary results. The 
final weighted-average dumping margin for the reviewed firm is listed 
below in the section entitled ``Final Results of Review.''

EFFECTIVE DATE: November 1, 2004.

FOR FURTHER INFORMATION CONTACT: Brian C. Smith, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230; telephone: 
(202) 482-1766.

SUPPLEMENTARY INFORMATION:

Background

    On July 29, 2004, the Department published in the Federal Register 
the Preliminary Results (see 69 FR 45012). On September 1, 2004, the 
petitioner \1\ filed its case brief. On September 8, 2004, Guangxi 
Hengxian submitted its rebuttal brief.
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    \1\ The petitioner is the Coalition for Fair Preserved Mushroom 
Trade, which includes the American Mushroom Institute and the 
following domestic companies: L.K. Bowman, Inc., Modern Mushroom 
Farms, Inc., Monterey Mushrooms, Inc., Mount Laurel Canning Corp., 
Mushrooms Canning Company, Southwood Farms, Sunny Dell Foods, Inc., 
and United Canning Corp.
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Scope of Order

    The products covered by this order are certain preserved mushrooms 
whether imported whole, sliced, diced, or as stems and pieces. The 
preserved mushrooms covered under this order are the species Agaricus 
bisporus and Agaricus bitorquis. ``Preserved mushrooms'' refer to 
mushrooms that have been prepared or preserved by cleaning, blanching, 
and sometimes slicing or cutting. These mushrooms are then packed and 
heated in containers including, but not limited to, cans or glass jars 
in a suitable liquid medium, including, but not limited to, water, 
brine, butter or butter sauce. Preserved mushrooms may be imported 
whole, sliced, diced, or as stems and pieces. Included within the scope 
of this order are ``brined'' mushrooms, which are presalted and packed 
in a heavy salt solution to provisionally preserve them for further 
processing.
    Excluded from the scope of this order are the following: (1) All 
other species of mushroom, including straw mushrooms; (2) all fresh and 
chilled mushrooms, including ``refrigerated'' or ``quick blanched 
mushrooms''; (3) dried mushrooms; (4) frozen mushrooms; and (5) 
``marinated,'' ``acidified'' or ``pickled'' mushrooms, which are 
prepared or preserved by means of

[[Page 63365]]

vinegar or acetic acid, but may contain oil or other additives.\2\
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    \2\ On June 19, 2000, the Department affirmed that 
``marinated,'' ``acidified,'' or ``pickled'' mushrooms containing 
less than 0.5 percent acetic acid are within the scope of the 
antidumping duty order. See ``Recommendation Memorandum-Final Ruling 
of Request by Tak Fat, et al. for Exclusion of Certain Marinated, 
Acidified Mushrooms from the Scope of the Antidumping Duty Order on 
Certain Preserved Mushrooms from the People's Republic of China,'' 
dated June 19, 2000, on file with the Department of Commerce in Room 
B-009. This decision is currently on appeal.
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    The merchandise subject to this order is currently classifiable 
under subheadings: 2003.10.0127, 2003.10.0131, 2003.10.0137, 
2003.10.0143, 2003.10.0147, 2003.10.0153 and 0711.51.0000 of the 
Harmonized Tariff Schedule of the United States (``HTSUS''). Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the scope of this order is 
dispositive.

Analysis of Comments Received

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

Changes Since the Preliminary Results

    Based on the comments received from the interested parties, we have 
made changes in the margin calculation for Guangxi Hengxian as noted 
below. For a discussion of these changes, see the ``Margin 
Calculations'' section of the Decision Memo.
    In the Preliminary Results, we included a surrogate cost amount for 
leasing land in the total cost of manufacture based on the assumption 
that the 2002-2003 financial reports of the two surrogate Indian 
producers (i.e., Agro Dutch Foods Ltd. (``Agro Dutch'') and Flex Foods 
Ltd. (``Flex Foods'')) which we used to derive our surrogate financial 
ratios did not include this expense. However, after further considering 
this same issue in a recently completed administrative review, where we 
used the same financial data to derive surrogate financial ratios, we 
concluded that the 2002-2003 financial reports of Agro Dutch and Flex 
Foods should include any and/or all additional costs associated with 
producing fresh mushrooms (i.e., land lease costs and/or mushroom shed 
usage) even if these Indian producers do not in fact own the land used 
to grow fresh mushrooms. (See Certain Preserved Mushrooms from the 
People's Republic of China: Final Results of Sixth Antidumping Duty New 
Shipper Review and Final Results and Partial Rescission of the Fourth 
Antidumping Duty Administrative Review, 69 FR 54635 (September 9, 2004) 
and its accompanying Issues and Decision Memorandum at Comment 3) 
(``PRC Mushrooms 4th AR/6th NSR''). In PRC Mushrooms 4th AR/6th NSR, we 
found that the land lease expense was included in the financial data of 
the Indian surrogate producers that we used to derive surrogate 
financial ratios and, as such, it was inappropriate to separately value 
the cost of the land lease. Therefore, in order to avoid double-
counting in the final results of this new shipper review, we have 
removed the surrogate value amount for land lease from the total cost 
of manufacturing.
    In the Preliminary Results, we included in the selling, general, 
and administrative expense (``SG&A'') calculation the expenses noted in 
line item 4 of Schedule 15 of Agro Dutch's 2002-2003 financial report 
(i.e., ``selling expenses-customs duties and others''). However, after 
further considering this same issue in PRC Mushrooms 4th AR/6th NSR, 
where we used the same financial data of Agro Dutch in our SG&A 
calculation, we concluded that the above-mentioned line item included 
customs duties, antidumping duty deposits and assessments paid by Agro 
Dutch, and/or freight/movement expenses because the context in which 
these expenses were reported in Agro Dutch's financial report 
sufficiently identified them as non-selling expenses (see PRC Mushrooms 
4th AR/6th NSR at Comment 9). Therefore, in the final results of this 
review, we have also removed from the calculation of Agro Dutch's SG&A 
percentage the expenses included in the above-mentioned line item 
because these expenses are associated with customs duties and/or 
freight/movement expenses and, therefore, should not be considered as 
selling expenses.
    We corrected the surrogate value for citric acid based on publicly 
available information submitted in the petitioner's March 3, 2004, 
publicly available information submission.
    We corrected Guangxi Hengxian's per-unit consumption factor for 
coal and the distances reported for salt and tape based on the 
Department's verification findings.
    We corrected a calculation error by including the total surrogate 
cost for tin cans and tin lids in Guangxi Hengxian's total material 
costs.

Final Results of Review

    We determine that the following weighted-average margin percentage 
exists for the company listed below during the period February 1, 2003, 
through July 31, 2003:

------------------------------------------------------------------------
                                                                Margin
                         Respondent                             Percent
------------------------------------------------------------------------
Guangxi Hengxian Pro-Light Foods, Inc. (Producer and                0.00
 Exporter)..................................................
------------------------------------------------------------------------

Assessment Rates

    The Department shall determine, and U.S. Customs and Border 
Protection (``CBP'') shall assess, antidumping duties on all 
appropriate entries. Pursuant to 19 CFR 351.212(b)(1), we calculated 
importer- or customer-specific ad valorem duty assessment rates based 
on the ratio of the total amount of the dumping margins calculated for 
the examined sales to the total entered value of those same sales. In 
accordance with 19 CFR 351.106(c)(2), we will instruct CBP to liquidate 
without regard to antidumping duties all entries of subject merchandise 
during the POR for which the importer- or customer-specific assessment 
rate is zero or de minimis (i.e., less than 0.50 percent). The 
Department will issue appropriate assessment instructions directly to 
CBP within 15 days of publication of the final results of this review.

Cash Deposit Requirements

    Bonding will no longer be permitted to fulfill security 
requirements for shipments of certain preserved mushrooms from the PRC 
that are manufactured and exported by Guangxi Hengxian and entered, or 
withdrawn from warehouse, for consumption on or after the publication 
date of the final results of this new shipper review.
    The following cash deposit requirements will be effective upon 
publication of the final results of this review for all shipments of 
subject merchandise from Guangxi Hengxian entered, or withdrawn from 
warehouse, for consumption on or after the publication date of this 
final results, as provided by section 751(a)(2)(B) and (C) of the Act: 
(1) The cash deposit rate for

[[Page 63366]]

subject merchandise manufactured and exported by Guangxi Hengxian will 
be zero; (2) the cash deposit rate for subject merchandise exported by 
Guangxi Hengxian but not manufactured by it will continue to be the 
PRC-wide rate (i.e., 198.63 percent); and (3) the cash deposit rate for 
subject merchandise manufactured by Guangxi Hengxian but not exported 
by it will be the rate applied to the exporter.
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative review.
    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) 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 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 return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305. 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 terms of an APO is a violation which is 
subject to sanction.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(a)(2)(B) and 777(i) of the Act and 19 CFR 
351.214.

    Dated: October 25, 2004.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.

Appendix--Issues in Decision Memo

Comments

Issue 1: Surrogate Value for Tin Cans and Tin Lids
Issue 2: Distance for Tin Cans
Issue 3: Miscellaneous Corrections
[FR Doc. E4-2958 Filed 10-29-04; 8:45 am]
BILLING CODE 3510-DS-S