[Federal Register Volume 70, Number 195 (Tuesday, October 11, 2005)]
[Notices]
[Pages 59031-59032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-5570]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-570-863


Notice of Rescission of Antidumping Duty New Shipper Review: 
Honey from the People's Republic of China

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: In response to a request from Kunshan Xin'an Trade Co., Ltd., 
the Department of Commerce (``the Department'') initiated a new shipper 
review of the antidumping duty order on honey from the People's 
Republic of China. The period of review (``POR'') is December 1, 2003, 
through November 30, 2004. For the reasons discussed below, we are 
rescinding this new shipper review.

EFFECTIVE DATE: October 11, 2005.

FOR FURTHER INFORMATION CONTACT: Anya Naschak, AD/CVD Operations, 
Office 9, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, D.C., 20230; telephone: (202) 482-6375.

SUPPLEMENTARY INFORMATION:

Scope of the 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 order 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 customs 
purposes, the Department's written description of the merchandise under 
this order is dispositive.

Background

    On December 22, 2004, the Department received a request for a new 
shipper review (``Xinan New Shipper Request'') from Kunshan Xin'an 
Trade Co., Ltd. (``Xinan PRC''). On January 31, 2005, the Department 
initiated this new shipper review for the period of review (``POR'') 
December 1, 2003, through November 30, 2004. See Honey from the 
People's Republic of China: Initiation of Antidumping New Shipper 
Review, 70 FR 6412 (February 7, 2005). On February 1, 2005, we issued 
the standard section A, C, and D questionnaire to Xinan PRC and its 
claimed U.S. affiliate, Xin'an USA, Inc. (``Xinan USA'') (collectively, 
``Xinan''). On March 10, 2005, and March 28, 2005, we received Xinan's 
response to sections A, C, and D of the Department's questionnaire.
    On July 18, 2005, the Department extended the time limit for the 
completion of the preliminary results of this review by 45 days from 
the original July 30, 2005, deadline, in accordance with section 
751(a)(2)(B)(iv) of the Tariff Act of 1930, as amended (``the Act''), 
and section 351.214(i)(2) of the Department's regulations. See Honey 
from the People's Republic of China: Extension of Time Limit for 
Preliminary Results of 2003/2004 New Shipper Review, 70 FR 42033 (July 
26, 2005).
    On August 10, 2005, the Department completed its preliminary bona 
fides analysis of Xinan's single sale to the United States and stated 
the Department's preliminary intention to rescind the new shipper 
review of Xinan, finding that Xinan's single sale to the United States 
was not a bona fide transaction. See Memorandum from James C. Doyle to 
Barbara E. Tillman: Bona Fide Analysis for Kunshan Xin'an Trade Co., 
Ltd.'s Sale in the New Shipper Review of Honey from the People's 
Republic of China, dated August 10, 2005 (``Bona Fides Memo''). The 
Department allowed interested parties an opportunity to provide 
comments on the Department's Bona Fides Memo, as well as the 
information placed on the record of review as attachments to the memo. 
Xinan provided comments on the Department's Bona Fides Analysis Memo on 
August 25, 2005, and the American Honey Producers and the Sioux Honey 
Association (collectively, ``petitioners'') provided rebuttal comments 
on August 31, 2005.
    On September 13, 2005, the Department extended the time limit for 
the completion of the preliminary results of this review by an 
additional 20 days, in accordance with section 751(a)(2)(B)(iv) of the 
Act, and section 351.214(i)(2) of the Department's regulations. See 
Honey from the People's Republic of China: Extension of Time Limit for 
Preliminary Results of 2003/2004 New Shipper Review, 70 FR 55109 
(September 20, 2005).

Rescission of Review

    Concurrent with this notice, we are issuing our memorandum 
detailing our analysis of the bona fides of Xinan's U.S. sale and our 
decision to rescind based on the totality of the circumstances. See 
Memorandum from James C. Doyle, Director, Office 9, to Barbara E. 
Tillman, Acting Deputy Assistant Secretary for Operations: Bona Fides 
Analysis and Rescission of New Shipper Review of Honey from the 
People's Republic of China for Kunshan Xin'an Trade Co., Ltd., dated 
October 3, 2005 (``Rescission Memo'').
    In evaluating whether or not a single sale in a new shipper review 
is commercially reasonable, and therefore bona fide, the Department has 
considered, inter alia, such factors as (1) the timing of the sale; (2) 
the price and quantity; (3) the expenses arising from the transaction; 
(4) whether the goods were resold at a profit; and (5) whether the 
transaction was at an arms-length basis. See Tianjin Tiancheng 
Pharmaceutical Co., Ltd. v. United States, 366 F. Supp. 2d 1246 (CIT 
2005) (``TTPC''), citing Am. Silicon Techs. v. United States, 110 F. 
Supp. 2d 992, 995 (CIT 2000). However, the analysis is not limited to 
these factors alone. The Department examines a number of factors, all 
of which may speak to the commercial realities surrounding the sale of 
subject merchandise. Although some bona fides issues may share 
commonalities across various Department cases, the Department examines 
the bona fide nature of a sale on a case-by-case basis, and the 
analysis may vary with the facts surrounding each sale. See TTPC, 366 
F. Supp. 2d at 1260, citing Certain Preserved Mushrooms From the 
People's Republic of China: Final Results and Partial Rescission of the 
New Shipper Review

[[Page 59032]]

and Final Results and Partial Rescission of the Third Antidumping Duty 
Administrative Review, 68 FR 41304 (July 11, 2003), and accompanying 
Issues and Decision Memorandum. The weight given to each factor 
investigated will depend on the circumstances surrounding the sale. See 
TTPC, 366 F. Supp. 2d at 1263.
    As discussed in detail in the Department's Rescission Memo, the 
Department has determined that the new shipper sale made by Xinan PRC 
was not bona fide because of: 1) inconsistencies between the prices 
charged and the quantities sold by Xinan USA for the single POR sale 
and all subsequent sales made by Xinan USA during the POR from the PRC; 
2) the circumstances surrounding payment for the expenses associated 
with the single POR sale; and 3) inconsistencies regarding the sales 
process followed by Xinan USA for the POR sale. Since the Department is 
rescinding this new shipper review, we are not calculating a company-
specific rate for Xinan, and Xinan will remain part of the PRC-wide 
entity.

Notification

    The Department will notify U.S. Customs and Border Protection that 
bonding is no longer permitted to fulfill security requirements for 
shipments by Xinan PRC of honey from the PRC entered, or withdrawn from 
warehouse, for consumption in the United States on or after the 
publication of this rescission notice in the Federal Register, and that 
a cash deposit of 183.80 percent ad valorem should be collected for any 
entries exported by Xinan PRC.
    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 this determination and notice in 
accordance with sections 751(a)(2)(B) and 777(i) of the Act.

    Dated: October 3, 2005.
Joseph A. Spetrini,
Acting Assistant Secretaryfor Import Administration.
[FR Doc. E5-5570 Filed 10-7-05; 8:45 am]
BILLING CODE 3510-DS-S