[Federal Register Volume 72, Number 120 (Friday, June 22, 2007)]
[Notices]
[Pages 34438-34441]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-12031]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-831]


Fresh Garlic from the People's Republic of China: Final Results 
and Partial Rescission of the Eleventh Administrative Review and New 
Shipper Reviews

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

EFFECTIVE DATE: June 22, 2007.
SUMMARY: On December 11, 2006, the Department of Commerce (``the 
Department'') published the Preliminary Results of the administrative 
review and new shipper review of fresh garlic from the People's 
Republic of China (``PRC''), covering the period November 1, 2004, 
through October 31, 2005. See Fresh Garlic from the People's Republic 
of China: Partial Rescission and Preliminary Results of the Eleventh 
Administrative Review and New Shipper Reviews, 71 FR 71510 (December 
11, 2006) (``Preliminary Results''). The period of review (``POR'') is 
November 1, 2004, through October 31, 2005. Based on our analysis of 
the comments received, we have made certain changes to our 
calculations. The final dumping margins for these reviews are listed in 
the ``Final Results of the Reviews'' section below.

FOR FURTHER INFORMATION CONTACT: Paul Walker or Alex Villanueva, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 
20230; telephone: (202) 482-0413 or (202) 482-3208, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On March 30, 2007, we extended the time limit for the completion of 
the final results of these reviews, including our analysis of issues 
raised in case or rebuttal briefs until June 9, 2007. See Fresh Garlic 
from the People's Republic of China: Extension of Time Limits for the 
Final Results of the 11\th\ Administrative Review and New Shipper 
Reviews, 72 FR 15105 (March 30, 2007).
    We invited parties to comment on the Preliminary Results. On 
January 31, 2007, GDLSK Respondents,\1\ Jinxiang Dongyun Freezing 
Storage Co., Ltd (``Dongyun''), and Petitioners\2\ filed case 
briefs.\3\ On February 12, 2007, Dongyun, GDLSK Respondents, Qingdao 
Saturn and Petitioners filed rebuttal case briefs.
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    \1\ Shandong Longtai Fruits and Vegetables Co., Ltd. 
(``Longtai''), Linshu Dading Private Agricultural Products Co., Ltd. 
(``Dading''), Jinxiang Shanyang Freezing Storage Co., Ltd. 
(``Shanyang Freezing''), Sunny Import & Export Limited (``Sunny''), 
and Jining Trans-High Trading Co., Ltd. (``Trans-High'') are 
collectively referred to as ``GDLSK Respondents.''
    \2\ Petitioners are the Fresh Garlic Producers Association 
(``FGPA'') and its individual members. The individual members of the 
FGPA are Christopher Ranch LLC, The Garlic Company, Valley Garlic, 
and Vessey and Company, Inc.
    \3\ Qingdao Camel Trading Co., Ltd. (``Qingdao Camel''), Qingdao 
Saturn International Trade Co., Ltd. (``Qingdao Saturn''), XuZhou 
Simple Garlic Industry Co., Ltd. (``XuZhou Simple''), and Qingdao 
Xintianfeng Foods Co., Ltd. (``QXF'') did not submit briefs.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
these reviews are addressed in the ``Antidumping Duty Order on Fresh 
Garlic from the People's Republic of China: Issues and Decision 
Memorandum for the Eleventh Administrative Review and New Shipper 
Reviews,'' dated June 11, 2007, which is hereby adopted by this notice 
(``Issues and Decision Memo''). A list of the issues which parties 
raised and to which we respond in the Issues and Decision Memo is 
attached to this notice as an Appendix. The Issues and Decision Memo is 
a public document and is on file in the Central Records Unit (``CRU''), 
Main Commerce Building, Room B-099, and is accessible on the Web at 
http://www.trade.gov/ia. The paper copy and electronic version of the 
memorandum are identical in content.

Changes Since the Preliminary Results

    Based on our analysis of information on the record of these 
reviews, and comments received from the interested parties, we have 
made changes to the margin calculations for certain respondents.
    We have revalued several of the surrogate values used in the 
Preliminary Results. The values that were modified for these final 
results are those for garlic bulbs, foreign brokerage and handling and 
labor wage rate. For further details see Issues and Decision Memo at 
Comments 2 through 6 and Intermediate Value Section below.
    In addition, we have made some company-specific changes since the 
Preliminary Results. Specifically, we have incorporated, where 
applicable, post-preliminary clarifications, and performed clerical 
error corrections for Dongyun, Longtai, Qingdao Camel, Qingdao Saturn, 
Shanyang Freezing, Sunny, Trans-High and XuZhou Simple. For further 
details on these company-specific changes, see Issues and Decision Memo 
at Comments 7 and 11 through 13.\4\
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    \4\ The specific calculation changes can be found in: ``Analysis 
for the Final Results of the 11th Antidumping Duty Administrative 
Review of Fresh Garlic from the People's Republic of China: Jinxiang 
Dongyun Freezing Storage Co., Ltd.''; ``Analysis for the Final 
Results of the 11th Antidumping Duty Administrative Review of Fresh 
Garlic from the People's Republic of China: Jinxiang Shanyang 
Freezing Storage Co., Ltd.''; ``Analysis for the Final Results of 
the 11th Antidumping Duty Administrative Review of Fresh Garlic from 
the People's Republic of China: Sunny Import & Export Limited''; 
``Analysis for the Final Results of the 11th Antidumping Duty 
Administrative Review of Fresh Garlic from the People's Republic of 
China: Jining Trans-High Trading Co., Ltd.''; ``Analysis for the 
Final Results of the Antidumping Duty New Shipper Review of Fresh 
Garlic from the People's Republic of China: Shandong Longtai Fruits 
& Vegetables Co., Ltd.''; ``Analysis for the Final Results of the 
Antidumping Duty New Shipper Review of Fresh Garlic from the 
People's Republic of China: Qingdao Camel Trading Co., Ltd.''; 
``Analysis for the Final Results of the Antidumping Duty New Shipper 
Review of Fresh Garlic from the People's Republic of China: Qingdao 
Saturn International Trade Co., Ltd.''; ``Analysis for the Final 
Results of the Antidumping Duty New Shipper Review of Fresh Garlic 
from the People's Republic of China: XuZhou Simple Garlic Industry 
Co., Ltd.''.
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Scope of the Order

    The products covered by this antidumping duty order are all grades 
of garlic, whole or separated into constituent cloves, whether or not 
peeled, fresh, chilled, frozen, provisionally preserved, or packed in 
water or other neutral substance, but not prepared or preserved by the 
addition of other ingredients or heat processing. The differences 
between grades are based on color, size, sheathing, and

[[Page 34439]]

level of decay. The scope of this order does not include the following: 
(a) Garlic that has been mechanically harvested and that is primarily, 
but not exclusively, destined for non-fresh use; or (b) garlic that has 
been specially prepared and cultivated prior to planting and then 
harvested and otherwise prepared for use as seed. The subject 
merchandise is used principally as a food product and for seasoning. 
The subject garlic is currently classifiable under subheadings 
0703.20.0010, 0703.20.0020, 0703.20.0090, 0710.80.7060, 0710.80.9750, 
0711.90.6000, and 2005.90.9700 of the Harmonized Tariff Schedule of the 
United States (``HTSUS''). Although the HTSUS subheadings are provided 
for convenience and customs purposes, our written description of the 
scope of this order is dispositive. In order to be excluded from the 
antidumping duty order, garlic entered under the HTSUS subheadings 
listed above that is (1) mechanically harvested and primarily, but not 
exclusively, destined for non-fresh use or (2) specially prepared and 
cultivated prior to planting and then harvested and otherwise prepared 
for use as seed must be accompanied by declarations to CBP to that 
effect.

Partial Recession of Administrative Reviews

    In the Preliminary Results, the Department issued a notice of 
intent to rescind the administrative review with respect to Jinan Yipin 
Corporation, Ltd. (``Jinan Yipin''), Shanghai Ever Rich Trade Company 
(``Ever Rich'') and its supplier Pizhou Guangda Import and Export Co., 
Ltd. (``Pizhou Guangda''), and Weifang Shennong Foodstuff Co., Ltd. 
(``Weifang Shennong'') because we found no evidence that Jinan Yipin, 
Ever Rich, Pizhou Guangda or Weifang Shennong made shipments of subject 
merchandise during the POR. See Preliminary Results at 71512. The 
Department received no comments on this issue, and we did not receive 
any further information since the issuance of the Preliminary Results 
that provides a basis for a reconsideration of this determination. 
Therefore, the Department is rescinding this administrative review with 
respect to Jinan Yipin, Ever Rich, Pizhou Guangda or Weifang Shennong.

Separate Rates

    In our Preliminary Results, we determined that Dading, Dongyun, 
Fook Huat Tong Kee Foodstuffs Co., Ltd. (``FHTK''), Heze Ever-Best 
International Trade Co., Ltd. (``Ever-Best''), Huaiyang Hongda 
Dehydrated Vegetable Company (``Hongda''), Longtai, Qingdao Camel, 
Qingdao Saturn, QXF, Shanyang Freezing, Sunny, Taiyan Ziyang Food Co., 
Ltd. (``Ziyang''), Trans-High and XuZhou Simple met the criteria for 
the application of a separate rate. We have not received any 
information or comments since the issuance of the Preliminary Results 
that provides a basis for reconsideration of these determinations. 
Therefore, the Department continues to find each of these entities meet 
the criteria for a separate rate.

Qingdao Camel

    In the Preliminary Results we found that Jinxiang County Lufeng 
Agriculture Product Material Co., Ltd. (``Lufeng''), Qingdao Camel's 
producer, failed to act to the best of its ability to comply with the 
Department's repeated requests for information. We therefore, applied 
partial adverse facts available, pursuant to section 776(a) and (b) of 
the Tariff Act of 1930 (``the Act''), to Lufeng for electricity, mesh 
bags, supplier distances and labor for the reasons set out in the 
Preliminary Results. See Preliminary Results, 71 FR at 71516. We did 
not receive any information or comments since the issuance of the 
Preliminary Results that provides a basis for reconsideration of these 
determinations. Accordingly, for the final results, we continue to 
apply partial adverse facts available to Qingdao Camel, as noted above.

QXF

    Consistent with the Preliminary Results, we continue to find that 
QXF failed to cooperate with the Department in the context of the new 
shipper review by not acting to the best of its ability to comply with 
the Department's requests for information and that an adverse inference 
is warranted, pursuant to section 776(a) and (b) of the Act, for the 
reasons set out in the Preliminary Results. See Preliminary Results, 71 
FR at 71517. We did not receive any information or comments since the 
issuance of the Preliminary Results that provides a basis for 
reconsideration of this determination. Accordingly, for the final 
results, we continue to assign QXF a margin of 376.67 percent.

Qingyuan

    Consistent with the Preliminary Results, we continue to find that 
Zhangqui Qingyuan Vegetable Co., Ltd. (``Qingyuan'') failed to 
cooperate with the Department in the context of the review by not 
acting to the best of its ability to comply with the Department's 
requests for information and that an adverse inference is warranted, 
pursuant to section 776(a) and (b) of the Act, for the reasons set out 
in the Preliminary Results. See Preliminary Results, 71 FR at 71517. We 
did not receive any information or comments since the issuance of the 
Preliminary Results that provides a basis for reconsideration of this 
determination. Accordingly, for the final results, we continue to 
assign Qingyuan a margin of 376.67 percent, the PRC-wide rate.

Normal Value Methodology

    The Department's general policy, consistent with section 
773(c)(1)(B) of the Act, is to calculate normal value (``NV'') using 
the factors of production (``FOPs'') that a respondent consumes in 
order to produce a unit of the subject merchandise. There are 
circumstances, however, in which the Department will modify its 
standard FOP methodology, choosing to apply a surrogate value to an 
intermediate input instead of the individual FOPs used to produce that 
intermediate input. First, in some cases, a respondent may report 
factors used to produce an intermediate input that accounts for an 
insignificant share of total output. When the potential increase in 
accuracy to the overall calculation that results from valuing each of 
the FOPs is outweighed by the resources, time, and burden such an 
analysis would place on all parties to the proceeding, the Department 
has valued the intermediate input directly using a surrogate value. 
See, e.g., Notice of Final Antidumping Duty Determination of Sales at 
Less Than Fair Value and Affirmative Critical Circumstances: Certain 
Frozen Fish Fillets from the Socialist Republic of Vietnam, 68 FR 37116 
(June 23, 2003) (``Fish Fillets'') at Comment 3.
    Also, there are circumstances in which valuing the FOPs used to 
yield an intermediate product would lead to an inaccurate result 
because the Department would not be able to account for a significant 
element of cost adequately in the overall factors buildup. In this 
situation, the Department would also value the intermediate input 
directly. See, e.g., Fresh Garlic from the People's Republic of China: 
Final Results and Partial Rescission of Antidumping Duty Administrative 
Review and Final Results of New Shipper Reviews, 71 FR 26329 (May 4, 
2006) at Comment 1.
    In the Preliminary Results, we found that respondents in these 
proceedings were unable to accurately record and substantiate the 
complete costs of growing garlic based on our analysis of the 
information on the record and for the reasons outlined in the 
Memorandum to the File entitled, ``11\th\ Administrative Review and New

[[Page 34440]]

Shipper Reviews of Fresh Garlic from the People's Republic of China: 
Intermediate Input Methodology,'' dated November 30, 2006 
(``Intermediate Product Memo''). See Preliminary Results, 71 FR at 
71520. In order to eliminate the distortions in our calculation of NV 
for all of the reasons identified in the Intermediate Product Memo, we 
have applied an intermediate-product valuation methodology to all 
companies for these final results of review. Using this methodology, we 
calculated NV by starting with a surrogate value for the garlic bulb 
(i.e., the ``intermediate product''), adjusted for yield losses during 
the processing stages, and adding the respondents' processing costs, 
which were calculated using their reported usage rates for processing 
fresh garlic. In future reviews, should a respondent be able provide 
sufficient factual evidence that it maintains the necessary information 
in its internal books and records that would allow us to establish the 
completeness and accuracy of the reported FOPs, we will revisit this 
issue and consider whether to use its reported FOPs in the calculation 
of NV. For further details, see Intermediate Product Memo and Issues 
and Decision Memo at Comment 1.
    In addition, we have revised the calculation of the garlic bulb 
surrogate value. In the Preliminary Results we used prices for super-A 
garlic to value the respondents garlic bulb input using Azadpur 
Agricultural Produce Marketing Committee's (``APMC'') ``Market 
Information Bulletin'' (the ``Bulletin''). The Bulletin is published by 
Azadpur APMC on each trading day and contains, among other things, a 
list of all fruits and vegetables sold on the previous trading day, the 
amount (by weight) of each fruit or vegetable sold on that day and a 
low, high and modal price for each commodity sold. For these final 
results, however, using respondents' size data on the record, the 
Department calculated a surrogate value based on the most appropriate 
Bulletin data. We have concluded that a more accurate analysis would be 
for the Department to use size A values averaged with deflated super-A 
values, for those respondents which have a garlic bulb input which 
overlaps the grade A and super-A sizes. Specifically, we used the data 
points for A grade garlic to capture respondents' inputs of garlic 
which ranged from 40 - 55mm and used super-A data points to capture the 
respondents' garlic input ranged greater than 55mm. For those 
respondents with a garlic bulb input which exceeds 55mm, we have used 
only super-A values. See Issues and Decision Memo at Comment 2.
    For a complete explanation of the Department's analysis, and for a 
more detailed analysis of these issues with respect to each respondent, 
see Intermediate Product Memo and Issues and Decision Memo at Comments 
1 and 2.

Final Results of the Reviews

    The Department has determined that the following final dumping 
margins exist for the period November 1, 2004, through October 31, 
2005:

      Fresh Garlic from the PRC - Weighted-average Dumping Margins
------------------------------------------------------------------------
          Manufacturer/Exporter            Weighted-Average Deposit Rate
------------------------------------------------------------------------
Produced by Jinxiang County Lufeng                                 70.47
 Agricultural Production Material Co.,
 Ltd. and Exported by Qingdao Camel
 Trading Co., Ltd........................
Produced and Exported by Shandong Longtai                  46.80[percnt]
 Fruits and Vegetables Co., Ltd..........
Produced and Exported by Qingdao                          376.67[percnt]
 Xintianfeng Foods Co., Ltd..............
Produced by Cangshan County Taifeng                           de minimis
 Agricultural By-Products Processing Co.,
 Ltd. and Exported by Qingdao Saturn
 International Trade Co., Ltd............
Produced and Exported by XuZhou Simple                     68.58[percnt]
 Garlic Industry Co., Ltd................
Sunny Import & Export Limited............                   1.45[percnt]
Jining Trans-High Trading Co., Ltd.......                   1.73[percnt]
Jinxiang Dongyun Freezing Storage Co.,                     14.72[percnt]
 Ltd.....................................
Jinxiang Shanyang Freezing Storage Co.,                    62.25[percnt]
 Ltd.....................................
Fook Huat Tong Kee Foodstuffs Co., Ltd...                  18.85[percnt]
Heze Ever-Best International Trade Co.,                    18.85[percnt]
 Ltd.....................................
Huaiyang Hongda Dehydrated Vegetable                       18.85[percnt]
 Company.................................
Linshu Dading Private Agricultural                         18.85[percnt]
 Products Co., Ltd.......................
Taiyan Ziyang Food Co., Ltd..............                  18.85[percnt]
PRC-Wide Rate (includes Qingyuan)........                 376.67[percnt]
------------------------------------------------------------------------

    The Department will disclose calculations performed for these final 
results to the parties within five days of the date of publication of 
this notice in accordance with 19 CFR 351.224(b).

Assessment Rates

    Pursuant to 19 CFR 351.212(b), the Department will determine, and 
CBP shall assess, antidumping duties on all appropriate entries. The 
Department intends to issue assessment instructions to CBP 15 days 
after the date of publication of these final results of review. For 
assessment purposes, where possible, we calculated importer-specific 
assessment rates for garlic from the PRC via 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. We will instruct CBP to assess antidumping duties on all 
appropriate entries covered by this review.
    As discussed above, we are rescinding the administrative review 
with respect to Ever Rich and its supplier Pizhou Guangda because we 
found no evidence that it made shipments of the subject merchandise 
during the POR. Therefore, for entries of subject merchandise exported 
by Ever Rich, antidumping duties shall be assessed at the PRC-Wide rate 
required at the time of entry, or withdrawal from warehouse, for 
consumption, in accordance with Department practice and 19 CFR 
351.212(c)(2). See Notice of Final Results and Final Rescission, In 
Part of Antidumping Administrative Review: Honey from the People's 
Republic of China, 70 FR 38873, 38881 (July 6, 2005). Lastly, for all 
shipments of subject merchandise exported by Trans-High and imported by 
companies other than those identified by Trans-High as its customers/
importers in this administrative review, antidumping duties shall be 
assessed at the PRC-Wide rate required at the time of entry,

[[Page 34441]]

or withdrawal from warehouse, for consumption, in accordance with 
Department practice and 19 CFR 351.212(c)(2). Id at 3888.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of these final results of this administrative review for 
all shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date, as 
provided for by section 751(a)(2)(C) of the Act: (1) for the exporters 
listed above, the cash deposit rate will be established in these final 
results of review (except, if the rate is zero or de minimis, i.e., 
less than 0.5 percent, no cash deposit will be required for that 
company); (2) for previously investigated or reviewed PRC and non-PRC 
exporters not listed above that have separate rates, the cash deposit 
rate will continue to be the exporter-specific rate published for the 
most recent period; (3) for all PRC exporters of subject merchandise 
which have not been found to be entitled to a separate rate, the cash 
deposit rate will be the PRC-wide rate of 376.67 percent; and (4) for 
all non-PRC exporters of subject merchandise which have not received 
their own rate, the cash deposit rate will be the rate applicable to 
the PRC exporters that supplied that non-PRC exporter. These deposit 
requirements, when imposed, shall remain in effect until further 
notice.
    The following cash deposit requirements will be effective upon 
publication of the final results of these new shipper reviews for all 
shipments of subject merchandise from Qingdao Camel, Qingdao Saturn, 
XuZhou and Longtai entered, or withdrawn from warehouse, for 
consumption on or after the publication date, as provided by section 
751(a)(2)(C) of the Act: (1) For subject merchandise exported by 
Qingdao Camel, Qingdao Saturn, XuZhou and Longtai and produced by their 
respective suppliers listed above, the cash-deposit rate will be that 
established in these final results of new shipper reviews; (2) for 
subject merchandise exported by Qingdao Camel, Qingdao Saturn, XuZhou 
and Longtai but not manufactured by their respective suppliers, the 
cash deposit rate will continue to be the PRC-wide rate (i.e., 376.67 
percent); and (3) for subject merchandise exported by QXF, the cash 
deposit rate will be the PRC-wide rate (i.e., 376.67 percent).

Notification of Interested Parties

    This notice 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 the review period. Pursuant to 19 CFR 
351.402(f)(3), failure to comply with this requirement could result in 
the Department's presumption that reimbursement of antidumping duties 
occurred and the subsequent assessment of doubled 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 as explained in the administrative protective order itself. 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 notice of final results of this administrative review and new 
shipper reviews are issued and published in accordance with sections 
751(a)(2)(C) and 777(i) of the Act and 19 CFR 351.221(b)(5) and 
351.214(j).

    Dated: June 11, 2007.
Joseph A. Spetrini,
Deputy Assistant Secretaryfor Import Administration.

Appendix I

Comment 1: Intermediate Methodology
Comment 2: Garlic Bulb Surrogate Value
    A. Product Specificity
    B. Broad Market Average
    C. Public Availability
    D. Contemporaneity
    E. Tax and Duty Exclusivity
Comment 3: Surrogate Financial Companies
Comment 4: Surrogate Value for Labor
Comment 5: Carton Surrogate Value
Comment 6: Inclusion of Packing Weight in Movement Expenses
Comment 7: Brokerage and Handling Surrogate Value
Comment 8: Water Surrogate Value
Comment 9: By-Product Offset
Comment 10: Application of Packaging Materials in the Calculation of 
Normal Value
Comment 11: Shangyang Freezing's Polyethylene and Polyester Surrogate 
Values
Comment 12: Dongyun's Section C Database
Comment 13: Dongyun's Yield Loss
[FR Doc. E7-12031 Filed 6-21-07; 8:45 am]
BILLING CODE 3510-DS-S