[Federal Register Volume 71, Number 127 (Monday, July 3, 2006)]
[Notices]
[Pages 37902-37904]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-10375]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-570-848


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

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On April 29, 2005, in response to requests from Jiangsu 
Jiushoutang Organisms-Manufacturers Co. Ltd. (``Jiangsu JOM''), 
Shanghai Sunbeauty Trading Co., Ltd.(Shanghai Sunbeauty''), 
and Qingdao Wentai Trading Co. Ltd. (``Wentai''), the Department of 
Commerce (``the Department'') initiated new shipper reviews of the 
antidumping duty order on freshwater crawfish tail meat from the 
People's Republic of China (``PRC''). The period of review (``POR'') is 
September 1, 2004, through February 28, 2005. For the reasons discussed 
below, we are rescinding these new shipper reviews.

EFFECTIVE DATE: July 3, 2006.

FOR FURTHER INFORMATION CONTACT: Scot Fullerton or P. Lee Smith, 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-
1386 or (202) 482-1655, respectively.

SUPPLEMENTARY INFORMATION:

Scope of the 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 (HTSUS) under item numbers 1605.40.10.10 and 
1605.40.10.90, which are the new HTSUS numbers for prepared foodstuffs, 
indicating peeled crawfish tail meat and other, as introduced by the 
U.S. Customs Service in 2000, and HTSUS items 0306.19.00.10 and 
0306.29.00, which are reserved for fish and crustaceans in general. The 
HTSUS subheadings are provided for convenience and Customs purposes 
only. The written description of the scope of this order is 
dispositive.

Background

    On March 17, 2005, the Department received properly filed requests 
for a new shipper review from Shanghai Sunbeauty and Jiangsu JOM. On 
March 18, 2005, the Department received a properly filed request for a 
new shipper review from Wentai. On April 29, 2005, the Department 
published its initiation of these new shipper reviews for the period 
September 1, 2004, through February 28, 2005. See Freshwater Crawfish 
Tail Meat From the People's Republic of China: Initiation of New 
Shipper Antidumping Administrative Reviews, 70 FR 23987 (May 6, 2005).
    On June 2, 2005, the Department received Jiangsu JOM, Shanghai 
Sunbeauty and Wentai's section A questionnaire responses. On June 22, 
2005, the Department received Jiangsu JOM and Shanghai Sunbeauty's 
section C & D questionnaire responses. On June 30, 2005, the Department 
received Wentai's section C & D questionnaire responses. On July 21, 
2005, the Department issued its first supplemental questionnaires to 
Jiangsu JOM and Shanghai Sunbeauty. On July 25, 2005, the Department 
issued its first supplemental questionnaire to Wentai. On August 12, 
2005, Wentai submitted its response to the Department's first 
supplemental questionnaire. On August 17, 2005, Jiangsu JOM and 
Shanghai Sunbeauty submitted their responses to the Department's first 
supplemental questionnaire. On August 18, 2005, Jiangsu JOM submitted a 
supplement to their August 17, 2005, submission. On September 19, 2005, 
the Department issued its second supplemental questionnaire to Jiangsu 
JOM and Shanghai Sunbeauty. On September 20, 2005, the Department 
issued its second supplemental questionnaire to Wentai. On October 3, 
2005, Jiangsu JOM and Shanghai Sunbeauty submitted their responses to 
the Department's second supplemental questionnaires. On October 5, 
2005, Wentai submitted its response to the Department's second 
supplemental questionnaire. On October 21, 2005, the Department 
rejected Jiangsu JOM's response to the Department's second supplemental 
questionnaire. On October 26, 2005, Jiangsu JOM resubmitted its 
response to the Department's second supplemental questionnaire.
    On October 14, 2005, the Department extended the due date for the 
preliminary results of this new shipper review by 120 days from the 
original October 26, 2005, deadline until February 23, 2006. See 
Freshwater Crawfish Tail Meat from the People's Republic of China: 
Notice of Extension of Time Limit of Preliminary Results of New Shipper 
Review, 70 FR 61117 (October 20, 2005).
    From October 18 through October 21, 2005, the Department conducted 
verification of Jiangsu JOM's questionnaire responses at the company's 
facilities in Xinghua City, Jiangsu, China. See Verification Report for 
Jiangsu Jiushoutang Organisms Manufacturers Co. Ltd., dated February 
17, 2006. From January 23 through January 24, 2006, the Department 
conducted verification of Jiangsu JOM's affiliated U.S. importer, Easy 
River Seafood Corp. (``Easy River''), in Alhambra, CA. See Verification 
Report for Easy River Seafood Corp., dated February 17, 2006.
    From October 31 through November 1, 2005, the Department conducted 
verification of Shanghai Sunbeauty's questionnaire responses at the 
company's sales office in Shanghai, China. See Verification Report for 
Shanghai Sunbeauty Trading Co. Ltd., dated February 17, 2006. From 
November 3 through November 4, 2005, the Department conducted 
verification of Shanghai Sunbeauty's questionnaire responses relating 
to its producer for the POR, Wuwei Xinhua Food Co. Ltd. (``Wuwei 
Xinhua''), in Wuwei County, Anhui Province, China. See Verification

[[Page 37903]]

Report for Wuwei Xinhua Food Co. Ltd., dated February 21, 2006. From 
January 26 through January 27, 2006, the Department conducted 
verification of Shanghai Sunbeauty's affiliated importer, Seawind Inc. 
(``Seawind''), in Redmond, WA. See Verification Report for Seawind 
Inc., dated February 17, 2006.
    From January 19 through 20, 2006, the Department conducted 
verification of Qingdao Wentai's questionnaire responses at the 
company's facilities in Qingdao, Shandong Province, China. See 
Verification Report for Qingdao Wentai Trading Co. Ltd., dated February 
17, 2006. The Department also conducted verification at the Qingdao 
Wentai's producer, Nanxian Shunxiang Aquatic Products Foodstuffs Co., 
Ltd.'s (``Shunxiang'') facilities in Nanzhou Town, Hunan Province, 
China, from January 16 to January 17, 2006. See Verification Report for 
Nanxian Shunxiang Aquatic Products Foodstuffs Co. Ltd., dated February 
17, 2006.
    On February 23, 2006, the Department completed its preliminary bona 
fides analysis for Jiangsu JOM's, Shanghai Sunbeauty's, and Wentai's 
single sales to the United States and stated the Department's 
preliminary intention to rescind the new shipper reviews of all three 
companies. See Memorandum to James C. Doyle, Director, Office 9, from 
Scot T. Fullerton and Prentiss Lee Smith, Case Analysts, Office 9: Bona 
Fides Analysis and Intent to Rescind New Shipper Review of Freshwater 
Crawfish Tail Meat from the People's Republic of China for Jiangsu 
Jiushoutang Organisms-Manufactures Co., Ltd., dated February 23, 2006 
(``Jiangsu JOM Bona Fides Memo''), Memorandum to James C. Doyle, 
Director, Office 9, from Scot T. Fullerton and Prentiss Lee Smith, Case 
Analysts, Office 9: Bona Fides Analysis and Intent to Rescind New 
Shipper Review of Freshwater Crawfish Tail Meat from the People's 
Republic of China for Shanghai Sunbeauty Trading Co. Ltd., dated 
February 23, 2006 (``Shanghai Sunbeauty Bona Fides Memo''), and 
Memorandum to James C. Doyle, Director, Office 9, from Scot T. 
Fullerton and Prentiss Lee Smith, Case Analysts, Office 9: Bona Fides 
Analysis and Intent to Rescind New Shipper Review of Freshwater 
Crawfish Tail Meat from the People's Republic of China for Qingdao 
Wentai Trading Co. Ltd., dated February 23, 2006 (``Wentai Bona Fides 
Memo'').
    In concurrence with issuing its preliminary results, the Department 
provided interested parties with an opportunity to submit comments on 
the Department's bona fides analysis memos. Shanghai Sunbeauty provided 
comments on the Department's Shanghai Sunbeauty Bona Fides Memo on 
April 7, 2006, and Jiangsu JOM provided comments on the Department's 
Jiangsu JOM Bona Fides Memo on April 7, 2006. Wentai provided comments 
on the Department's Wentai Bona Fides Memo on April 7, 2006, which the 
Department rejected on April 13, 2006, for containing untimely new 
factual information. Wentai resubmitted its comments on April 14, 2006. 
The Crawfish Processors Alliance, the Louisiana Department of 
Agriculture and Forestry, and Bob Odom, Commissioner, collectively 
provided rebuttal comments on April 14, 2006.

Rescission of Review

    Concurrent with this notice, we are issuing an issues and decision 
memorandum detailing our analysis of the comments received regarding 
our decision to preliminarily rescind the reviews for all three 
companies based on the non-bona fide nature of their sales. See 
Memorandum from Stephen J. Claeys, Deputy Assistant Secretary for 
Import Administration to David M. Spooner, Assistant Secretary for 
Import Administration: Issues and Decision Memorandum for the Final 
Results in the 2004/2005 Semiannual New Shipper Review of Freshwater 
Crawfish Tail Meat from the People's Republic of China dated June 23, 
2006 (``Decision Memo'').
    In evaluating whether or not a sale 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 arms-length. 
See e.g., Tianjin Tiancheng Pharmaceutical Co., Ltd. v. U.S., 366 F. 
Supp. 2d 1246, 1249 (CIT 2005) (``TTPC''), citing Am. Silicon Techs. v. 
U.S., 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. While some bona fides issues may share 
commonalities across various Department cases, each one is company-
specific and may vary with the facts surrounding each sale. See Certain 
Preserved Mushrooms From the People's Republic of China: Final Results 
and Partial Rescission of the New Shipper Review 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, at 20. The weight given to each factor considered will 
depend on the circumstances surrounding the sale. See TTPC, 366 F. 
Supp. 2d at 1263.
    As discussed in detail in the Decision Memo, the Department has 
determined that the sale made by Jiangsu JOM was not bona fide because: 
1) the price and quantity for Jiangsu JOM's sale of crawfish tail meat 
were atypical of its post-POR sales and of other exports from the PRC 
of the subject merchandise into the United States during the POR; 2) 
Jiangsu JOM's failed to disclose relationships between it and other 
crawfish tail meat exporters and producers; 3) Jiangsu JOM completely 
changed its U.S. customer base after the POR sale; as well as 4) other 
indicia of a non-bona fide transaction.
    As discussed in detail in the Decision Memo, the Department has 
determined that the sale made by Shanghai Sunbeauty was not bona fide 
because: 1) the price and quantity for Shanghai Sunbeauty's sale of 
crawfish tail meat were atypical of its post-POR sales and of other 
exports from the PRC of the subject merchandise into the United States 
during the POR;
    2) Seawind's POR purchase and cash deposit was atypical; 3) the 
source and timeliness of payment from the POR customer was atypical; as 
well as 4) other indicia of a non-bona fide transaction.
    As discussed in detail in the Decision Memo, the Department has 
determined that the sale made by Wentai was not bona fide because: 1) 
the price and quantity for Wentai'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 POR; 2) the circumstances 
surrounding the single POR sale and its negotiation were unusual; 3) 
the exporter and producer failed to report certain business 
relationships; as well as 4) the atypical circumstances surrounding the 
formation of Wentai and Shunxiang.
    Wentai, Shanghai Sunbeauty, and Jiangsu JOM each only made a 
single, non-bona fide sale during the POR. Therefore, the Department is 
rescinding these reviews because there are no reviewable sales during 
the POR. See TTCP, 366 F. Supp. 2d at1249. Because the Department is 
rescinding the new shipper reviews, we are not making a determination 
as to whether Jiangsu JOM, Shanghai Sunbeauty, and Wentai qualify for 
separate rates. Therefore, Jiangsu JOM, Shanghai Sunbeauty, and Wentai 
will remain part of the PRC-wide entity.

[[Page 37904]]

Notification

    The Department will notify U.S. Customs and Border Protection that 
bonding is no longer permitted to fulfill security requirements for 
shipments by Jiangsu JOM, Shanghai Sunbeauty, and Wentai 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 rescission notice in the Federal Register, and that a cash deposit 
of 223.01 percent ad valorem should be collected for any entries 
exported by Jiangsu JOM, Shanghai Sunbeauty, and Wentai.
    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: June 23, 2006.
David M. Spooner,
Assistant Secretaryfor Import Administration.
[FR Doc. E6-10375 Filed 6-30-06; 8:45 am]
BILLING CODE 3510-DS-S