[Federal Register Volume 72, Number 187 (Thursday, September 27, 2007)]
[Notices]
[Pages 54896-54899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-19128]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-831]


Fresh Garlic From the People's Republic of China: Final Results 
of the Eleventh New Shipper Reviews

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

DATES: Effective Date: September 27, 2007.
SUMMARY: On April 30, 2007, the Department of Commerce (``the 
Department'') published the Preliminary Results of the new shipper 
reviews of the antidumping duty order on fresh garlic from the People's 
Republic of China (``PRC''), covering the period November 1, 2005, 
through April 30, 2006. See Fresh Garlic from the People's Republic of 
China: Preliminary Results of New Shipper Reviews, 72 FR 21219 (April 
30, 2007) (``Preliminary Results''). The period of review (``POR'') is 
November 1, 2005, through April 30, 2006. \1\ 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.
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    \1\ On April 23, 2007, we issued a memorandum extending the end 
of the POR from April 30, 2006, to May 4, 2006, to capture entries 
of two of the new shippers' merchandise into the United States 
market which happened after April 30, 2006. See Memorandum to the 
File from Javier Barrientos, Senior Analyst, through Alex 
Villanueva, Program Manager, Office 9: Expansion of the Period of 
Review in the New Shipper Reviews of Fresh Garlic from the People's 
Republic of China, dated April 23, 2007 (``POR Expansion Memo'').

FOR FURTHER INFORMATION CONTACT: Javier Barrientos, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
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20230; telephone: (202) 482-2243.

SUPPLEMENTARY INFORMATION:

Background

    The Department received timely case briefs from Weifang Hongqiao 
International Logistics Co., Ltd. (``Hongqiao'') on May 22, 2007, and 
from Petitioners \2\ on June 15, 2007. The

[[Page 54897]]

Department received timely rebuttal briefs from Shandong Wonderland 
Organic Food Co., Ltd. (``Wonderland'') and Shenzhen Xinboda Industrial 
Co., Ltd. (``Xinboda'') on June 22, 2007. On June 27, 2006, the 
Department issued a questionnaire to the foreign market researcher 
(``FMR'') responsible for providing the garlic bulb prices as submitted 
by Petitioners in their April 3, 2007, surrogate value submission.
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    \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.
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    On June 28, 2007, we extended the time limit for the completion of 
the final results of these reviews. See Fresh Garlic from the People's 
Republic of China: Extension of Time Limits for Final Results of New 
Shipper Reviews, 72 FR 37195 (July 9, 2007). On July 11, 2007, we 
received the response to the Department's June 27, 2006, FMR 
questionnaire.
    On August 10, 2007, we reopened the record and provided parties an 
opportunity to comment on the FMR's July 11, 2007, response. On August 
15, 2007, we received a supplemental brief from Petitioners with regard 
to the FMR's July 11, 2007, response. No other party submitted 
comments.

Analysis of Comments Received

    All issues raised in the case, rebuttal, and supplemental 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 New Shipper Reviews,'' dated 
September 20, 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 all respondents. We have 
revalued one of the surrogate values (garlic bulb prices) used in the 
Preliminary Results. For further details see Issues and Decision Memo 
at Comment 1.
    In addition, we have made a company-specific change since the 
Preliminary Results. Specifically, we have incorporated a post-
preliminary results clarification/correction to Hongqiao's margin 
calculation with respect to mesh bags. For further details on this 
company-specific change, see Issues and Decision Memo at Comment 3.\3\
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    \3\ The specific calculation changes can be found in: ``Analysis 
for the Final Results of the 11th Antidumping Duty New Shipper 
Review of Fresh Garlic from the People's Republic of China: Weifang 
Hongqiao International Logistics Co., Ltd. (``Hongqiao'') dated 
September 20, 2007.
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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 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.

Normal Value Methodology

    The Department's general policy, consistent with section 773(c)(1) 
of the Tariff Act of 1930, as amended (the ``Act''), is to calculate 
normal value (``NV'') for non-market economy companies using the 
factors of production (``FOP'') 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 will value 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'') and accompanying Issues and Decision Memorandum 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) and accompanying Issues and Decision Memorandum 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. See Preliminary Results, 71 FR at 71520; see 
also Memorandum to the File through James C. Doyle, Director, Office 9 
and Alex Villanueva, Program Manager, Office 9 from Irene Gorelik, 
Analyst, Office 9: New Shipper Review of the Antidumping Duty Order on 
Fresh Garlic From the People's Republic of China: Intermediate Input 
Methodology, dated April 23, 2007 (``Intermediate Product Memo''). 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

[[Page 54898]]

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 to 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.
    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, and a 
clarification to the definition of grades A and Super A, the Department 
calculated a surrogate value based on the most appropriate Bulletin 
data, i.e., the average of grades A and Super-A garlic bulb prices, as 
opposed to only utilizing the Super A prices (as was done in the 
Preliminary Results). Specifically, we averaged data points for A and 
Super A grade garlic values (from which we deducted a market fee and 
deflated to the POR) to capture respondents' inputs of garlic which was 
greater than 40mm in diameter. See Issues and Decision Memo at Comment 
1.
    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 3.

Final Results of the Reviews

    The Department has determined that the following final dumping 
margins exist for the period November 1, 2005, through April 30, 2006: 
\4\
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    \4\ For liquidation purposes the Department will instruct 
Customs and Border Protection (``CBP'') to use the period November 
1, 2005, through May 4, 2006, for two of the new shippers for whom 
we extended the POR. See POR Expansion Memo.

                        Fresh Garlic From the PRC
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                                             Weighted-average margin
         Manufacturer/exporter                      (percent)
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Produced by Jinxiang Dingtai Garlic      18.56.
 Product Co., Ltd. and Exported by
 Weifang Hongqiao International
 Logistics Co., Ltd.
Produced and Exported by Jinxiang        21.79.
 Tianma Freezing Storage Co., Ltd.
Produced and Exported by Shandong        17.31.
 Wonderland Organic Food Co., Ltd.
Produced by Zhengzhou Dadi Garlic        0.00 (de minimis).
 Industry Co., Ltd. and Exported by
 Shenzhen Xinboda Industrial Co., Ltd.
------------------------------------------------------------------------

    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.

Cash Deposit Requirements

    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 Hongqiao, Wonderland, Tianma, and 
Xinboda 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 produced and exported by Tianma, 
produced and exported by Wonderland, produced by Dadi and exported by 
Xinboda, or produced by Dingtai and exported by Hongqiao, the cash-
deposit rate will be that established in the final results of these 
reviews; (2) for subject merchandise exported by Hongqiao but not 
manufactured by Dingtai and for subject merchandise exported by Xinboda 
but not manufactured by Dadi, the cash deposit rate will continue to be 
the PRC-wide rate (i.e., 376.67 percent); and (3) for subject 
merchandise exported by Wonderland or Tianma, but manufactured by any 
other party, the cash deposit rate will be the PRC-wide rate (i.e., 
376.67 percent).
    If the cash deposit rate calculated in the final results is zero or 
de minimis, no cash deposit will be required for those specific 
producer-exporter combinations. These cash deposit requirements, when 
imposed, shall remain in effect until further notice.

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).

    Dated: September 20, 2007.
Joseph A. Spetrini,
Deputy Assistant Secretary for Import Administration.

Appendix I

Comment 1: Garlic Bulb Surrogate Value
A. Product Specificity
B. Broad Market Average
C. Public Availability
D. Contemporaneity

[[Page 54899]]

E. Tax and Duty Exclusivity
Comment 2: Surrogate Financial Ratios
Comment 3: Hongqiao Margin Calculation

[FR Doc. E7-19128 Filed 9-26-07; 8:45 am]
BILLING CODE 3510-DS-P