[Federal Register Volume 71, Number 116 (Friday, June 16, 2006)]
[Notices]
[Pages 34893-34895]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-9477]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-570-863


Honey from the People's Republic of China: Final Results and 
Final Rescission, In Part, of Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On December 16, 2005, the Department published the Preliminary 
Results of the third administrative review of the antidumping duty 
order on honey from the People's Republic of China (PRC). Honey from 
the People's Republic of China: Preliminary Results and Partial 
Rescission of Antidumping Duty Administrative Review, 70 FR 74764 
(December 16, 2005) (Preliminary Results). This review covers eight 
exporters or producer/exporters: (1) Anhui Honghui Honghui Foodstuff 
(Group) Co., Ltd. (Anhui Honghui); (2) Jiangsu Kanghong Natural 
Healthfoods Co., Ltd. (Jiangsu Kanghong); (3) Jinfu Trading Co., Ltd. 
(Jinfu); (4) Shanghai Eswell Enterprise Co., Ltd. (Eswell); (5) 
Zhejiang Native Produce and Animal By-Products Import & Export Group 
Corp. (Zhejiang); (6) Chengdu Waiyuan Bee Products Co., Ltd. (Chengdu 
Waiyuan); (7) Eurasia Bee's Products Co., Ltd. (Eurasia); and (8) 
Sichuan-Dujiangyan Dubao Bee Industrial Co., Ltd. (Dubao). The period 
of review (POR) is December 1, 2003, through November 30, 2004. We have 
made changes to certain surrogate values based on our analysis of the 
record, including factual information obtained since the Preliminary 
Results. Therefore, the final results differ from the Preliminary 
Results. See ``Final Results of Review'' section below.

EFFECTIVE DATE: June 16, 2006.

FOR FURTHER INFORMATION CONTACT: Kristina Boughton or Bobby Wong, AD/
CVD Operations, Office 9, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
8173 or (202) 482-0409, respectively.

SUPPLEMENTARY INFORMATION:

Background

    We published in the Federal Register the Preliminary Results of the 
third administrative review on December 16, 2005. Preliminary Results. 
The POR is December 1, 2003, through November 30, 2004.
    Since the Preliminary Results the following events have occurred:
    On January 3, 2006, we extended the time limit for submitting 
further information to value the factors of production until February 
2, 2006. On February 2, 2006, we received surrogate value submissions 
from Anhui Honghui, Jiangsu Kanghong, and Zhejiang (collectively, GDLSK 
respondents), from Eswell, and from the American Honey Producers 
Association and the Sioux Honey Association (collectively, 
petitioners). On February 13, 2006, we received a rebuttal surrogate 
value submission from the GDLSK

[[Page 34894]]

respondents. On February 7, 2006, we invited parties to comment in 
their briefs on reclassifying employee benefits (i.e., pension and 
social security expenses) from direct labor to manufacturing overhead 
in the calculation of financial ratios.
    We invited parties to comment on our Preliminary Results. We 
received case briefs from the GDLSK respondents and Eswell on February 
21, 2006. We received a rebuttal brief from the petitioners on February 
28, 2006.

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 the order 
is dispositive.

Partial Rescission of Administrative Review

    In the Preliminary Results, the Department issued a notice of 
intent to rescind this administrative review with respect to Chengdu 
Waiyuan, as we found that there were no entries of subject merchandise 
during the POR. Preliminary Results, 70 FR at 74765. The Department 
received no comments on this issue and has no evidence to challenge 
this finding. Therefore, the Department is rescinding this 
administrative review with respect to Chengdu Waiyuan.

Separate Rates

    Anhui Honghui, Jiangsu Kanghong, Jinfu, Eswell, Zhejiang, and 
Eurasia requested separate, company-specific antidumping duty rates. In 
the Preliminary Results, we found that Anhui Honghui, Jiangsu Kanghong, 
Jinfu, Eswell, and Zhejiang had met the criteria for the application of 
a separate antidumping duty rate. Preliminary Results, 70 FR at 74768. 
Also in the Preliminary Results, we found that Eurasia and Dubao did 
not respond in a complete and timely manner to the Department's 
requests for information, and hence do not qualify for separate rates, 
but rather are appropriately considered to be part of the PRC-wide 
entity. Id. The Department did not receive comments on this issue prior 
to these final results. See also ``The PRC-Wide Rate and Application of 
Facts Otherwise Available'' section below.
    We have not received any information since the Preliminary Results 
with respect to Anhui Honghui, Jiangsu Kanghong, Jinfu, Eswell, and 
Zhejiang that would warrant reconsideration of our separate-rates 
determination with respect to these companies. Therefore, we have 
assigned individual dumping margins to Anhui Honghui, Jiangsu Kanghong, 
Jinfu, Eswell, and Zhejiang for this review period.

Analysis of Comments Received

    All issues raised in the briefs are addressed in the Issues and 
Decision Memorandum for the Final Results in the 2003-2004 
Administrative Review of Honey from the People's Republic of China from 
Stephen J. Claeys, Deputy Assistant Secretary, to David M. Spooner, 
Assistant Secretary, dated June 9, 2006 (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 Department of Commerce. 
In addition, a complete version of the Issues and Decision Memorandum 
can be accessed directly on the Web at http://trade.gov/ia. 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 company-specific changes to certain surrogate value calculations 
that affect the margin calculations for Eswell. For a discussion of 
these changes, see the Issues and Decision Memorandum, at Comment 8.
    For the final results, we revised our calculation of surrogate 
financial ratios for factory overhead, selling, general and 
administrative expenses, and profit, to use the more contemporaneous 
2004/2005 annual report from the Mahabaleshwar Honey Producers 
Cooperative, and applied these new ratios in our margin calculations. 
We also revised our calculation of the financial ratios by 
reclassifying employee benefits into overhead, consistent with recent 
Department determinations. See, e.g., Folding Metal Tables and Chairs 
from the People's Republic of China: Final Results of Antidumping Duty 
Administrative Review, 71 FR 2905 (January 18, 2006), and accompanying 
Issues and Decision Memorandum, at Comment 1B See also Issues and 
Decision Memorandum, at Comments 2, 3, and 6.
    The PRC-wide rate has also changed for the final results, from 
183.80 percent to 212.39 percent, which represents the calculated rate 
for Anhui Honghui in these final results and is the highest rate 
determined in the instant or any previous segment of this proceeding. 
We will apply the new PRC-wide rate of 212.39 percent to the PRC-wide 
entity (including Eurasia and Dubao) for the final results. See ``The 
PRC-Wide Rate and Application of Facts Otherwise Available'' section 
below. Corroboration of the new PRC-wide rate is not required because 
this rate is based on, and calculated from, information obtained in the 
course of this administrative review, i.e., it is not secondary 
information. See 19 CFR 351.308(c) and (d) and section 776(c) of the 
Tariff Act of 1930, as amended (the Act).

The PRC-Wide Rate and Application of Facts Otherwise Available

    As explained above, Anhui Honghui, Jiangsu Kanghong, Jinfu, Eswell, 
and Zhejiang (collectively, separate rate companies) each have obtained 
a separate rate. The PRC-wide rate applies to all entries of subject 
merchandise except for entries from PRC producers/exporters that have 
their own calculated rate. See ``Separate Rates'' section above.
PRC-wide Entity (including Eurasia and Dubao):
    The Department did not receive comments on its preliminary 
determination to apply adverse facts available (AFA) to the PRC-wide 
entity (including Eurasia and Dubao) and has no evidence to challenge 
this finding. Therefore, we have not altered our decision to apply 
total AFA to the PRC-wide entity (including Eurasia and Dubao) for 
these final results, in accordance with sections 776(a)(2)(A) and (B) 
and section 776(b) of the Act. For a complete discussion of the 
Department's decision to apply total AFA to the PRC-wide entity 
(including Eurasia and Dubao), see Preliminary Results, 70 FR at 74768-
74769.

Final Results of Review

    We determine that the following antidumping duty margins exist:

[[Page 34895]]



------------------------------------------------------------------------
                      Exporter                         Margin (percent)
------------------------------------------------------------------------
Anhui Honghui Foodstuffs (Group) Co., Ltd...........             212.39%
Jiangsu Kanghong Natural Healthfoods Co., Ltd.......             210.53%
Jinfu Trading Co., Ltd..............................             168.88%
Shanghai Eswell Enterprise Co., Ltd.................             168.30%
Zhejiang Native Produce and Animal By-Products                   169.11%
 Import & Export Group Corp.........................
PRC-Wide Rate (including Sichuan-Dujiangyan Dubao                212.39%
 Bee Industrial Co., Ltd. and Eurasia's Bee Products
 Co., Ltd.).........................................
------------------------------------------------------------------------

    For details on the calculation of the antidumping duty weighted-
average margin for each company, see the respective company's analysis 
memorandum for the final results of the third administrative review of 
the antidumping duty order on honey from the PRC, dated June 9, 2006. 
Public versions of these memoranda are on file in the CRU.

Assessment of Antidumping Duties

    Pursuant to 19 CFR 351.212(b), the Department will determine, and 
U.S. Customs and Border Protection (CBP) shall assess, antidumping 
duties on all appropriate entries. The Department will issue 
appropriate assessment instructions directly to CBP within 15 days of 
publication of these final results of review. For assessment purposes, 
where possible, we calculated importer-specific assessment rates for 
honey from the PRC on a per-unit basis. Specifically, we divided the 
total dumping margins (calculated as the difference between normal 
value and export price or constructed export price) for each importer 
by the total quantity of subject merchandise sold to that importer 
during the POR to calculate a per-unit assessment amount. We will 
direct CBP to levy importer-specific assessment rates based on the 
resulting per-unit (i.e., per-kilogram) rates by the weight in 
kilograms of each entry of the subject merchandise during the POR.

Cash Deposits

    The following cash-deposit requirements will be effective upon 
publication of these final results for shipments of the subject 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the publication date of these final results, as provided by 
section 751(a)(2)(C) of the Act: (1) For subject merchandise exported 
by Anhui Honghui, Jiangsu Kanghong, Jinfu, Eswell, and Zhejiang, we 
will establish a per-kilogram cash deposit rate which will be 
equivalent to the company-specific cash deposit established in this 
review; (2) the cash deposit rate for PRC exporters who received a 
separate rate in a prior segment of the proceeding will continue to be 
the rate assigned in that segment of the proceeding (except for 
Eurasia, whose cash-deposit rate has changed in this review to the PRC-
wide entity rate, as noted below); (3) for all other PRC exporters of 
subject merchandise which have not been found to be entitled to a 
separate rate (including Dubao and Eurasia), the cash-deposit rate will 
be the PRC-wide rate of 183.80 percent; and (4) for all non-PRC 
exporters of subject merchandise, the cash-deposit rate will be the 
rate applicable to the PRC supplier of that exporter.
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative review.

Notification to Interested Parties

    This notice also serves as the 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 in the subsequent 
assessment of double antidumping duties.
    This notice also serves as the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the return/destruction or conversion to judicial protective 
order of proprietary information disclosed under APO in accordance with
    19 CFR 351.305(a)(3). Failure to comply is a violation of the APO.
    This determination is issued and published in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: June 9, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix I

List of Issues

General Issues

Comment 1: Appropriate Surrogate Value for Honey
Comment 2: Appropriate Surrogate Value for Financial Ratios
Comment 3: Calculation of the MHPC Financial Ratios
Comment 4: Brokerage and Handling Expenses
Comment 5: Calculation of the Surrogate Wage Rate
Comment 6: Calculation of Employee Benefits in Financial Ratios

Company-Specific Issues

Shanghai Eswell-Related Issues

Comment 7: Valuation of By-Product for Shanghai Eswell
Comment 8: Calculation of Indirect Selling Expenses for Shanghai Eswell

Jiangsu Kanghong-Related Issues

Comment 9: Appropriate Factors of Production to Value for Jiangsu 
Kanghong
[FR Doc. E6-9477 Filed 6-15-06; 8:45 am]
Billing Code: 3510-DS-S