[Federal Register Volume 74, Number 177 (Tuesday, September 15, 2009)]
[Notices]
[Pages 47201-47204]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-22186]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-331-802]


Certain Frozen Warmwater Shrimp from Ecuador: Final Results of 
Antidumping Duty Administrative Review

AGENCY:  Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On March 9, 2009, the Department of Commerce (the Department) 
published the preliminary results of the administrative review of the 
antidumping duty order on certain frozen warmwater shrimp (shrimp) from 
Ecuador. This review covers 81 producers/exporters of the subject 
merchandise to the United States. The period of review (POR) is 
February 1, 2007, through August 14, 2007.
    Based on our analysis of the comments received, we have made 
certain changes in the margin calculations for Promarisco, S.A. 
(Promarisco) and Sociedad Nacional de Galapagos, S.A. (Songa), 
producer/exporters selected for individual review. Therefore, the final 
results for Promarisco and Songa differ from the preliminary results. 
The final weighted-average dumping margins for the reviewed firms are 
listed below in the section entitled ``Final Results of Review.''

EFFECTIVE DATE: September 15, 2009.

FOR FURTHER INFORMATION CONTACT:  David Goldberger or Gemal Brangman, 
AD/CVD Operations, Office 2, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
4136 or (202) 482-3773, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This review covers 81 producers/exporters. The respondents which 
the Department selected for individual review are Promarisco and Songa. 
The respondents which were not selected for individual review are 
listed in the ``Final Results of Review'' section of this notice.
    On March 9, 2009, the Department published in the Federal Register 
the preliminary results of the 2007 administrative review of the 
antidumping duty order on shrimp from Ecuador. See Certain Frozen 
Warmwater Shrimp from Ecuador: Preliminary Results of Antidumping Duty 
Administrative Review, 74 FR 9983 (March 9, 2009) (Preliminary 
Results). We invited parties to comment on those Preliminary Results. 
In May 2009, we received case briefs from the domestic producers of 
frozen warmwater shrimp (i.e., the Ad Hoc Shrimp Trade Action 
Committee, hereafter ``Domestic Producers''), the respondents, 
Promarisco and Songa, and the domestic processors of frozen warmwater 
shrimp (``the Processors''), an interested party in this proceeding. 
Rebuttal briefs were received from the Domestic Producers, Promarisco, 
Songa, and the Processors.
    In June 2009, we extended the deadline for the final results, due 
no later than September 8, 2009. See Certain Frozen Warmwater Shrimp 
from Ecuador: Notice of Extension of Time Limit for the Final Results 
of the Third Administrative Review, 74 FR 28018 (June 12, 2009).
    The Department has conducted this administrative review in 
accordance with section 751 of the Tariff Act of 1930, as amended (the 
Act).

Scope of the Order

    The scope of this order includes certain frozen warmwater shrimp 
and prawns, whether wild-caught (ocean harvested) or farm-raised 
(produced by aquaculture), head-on or head-off, shell-on or peeled, 
tail-on or tail-off,\1\ deveined or not deveined, cooked or raw, or 
otherwise processed in frozen form.
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    \1\ ``Tails'' in this context means the tail fan, which includes 
the telson and the uropods.
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    The frozen warmwater shrimp and prawn products included in the 
scope of this order, regardless of definitions in the Harmonized Tariff 
Schedule of the United States (HTSUS), are products which are processed 
from warmwater shrimp and prawns through freezing and which are sold in 
any count size.
    The products described above may be processed from any species of 
warmwater shrimp and prawns. Warmwater shrimp and prawns are generally 
classified in, but are not limited to, the Penaeidae family. Some 
examples of the farmed and wild-caught warmwater species include, but 
are not limited to, whiteleg shrimp (Penaeus vannemei), banana prawn 
(Penaeus merguiensis), fleshy prawn (Penaeus chinensis), giant river 
prawn (Macrobrachium rosenbergii), giant tiger prawn (Penaeus monodon), 
redspotted shrimp (Penaeus brasiliensis), southern brown shrimp 
(Penaeus subtilis), southern pink shrimp (Penaeus notialis), southern 
rough shrimp (Trachypenaeus curvirostris), southern white shrimp 
(Penaeus schmitti), blue shrimp (Penaeus stylirostris), western white 
shrimp (Penaeus occidentalis), and Indian white prawn (Penaeus 
indicus).
    Frozen shrimp and prawns that are packed with marinade, spices or 
sauce are included in the scope of this order. In addition, food 
preparations, which are not ``prepared meals,'' that contain more than 
20 percent by weight of shrimp or prawn are also included in the scope 
of this order.
    Excluded from the scope are: 1) breaded shrimp and prawns (HTSUS 
subheading 1605.20.10.20); 2) shrimp and prawns generally classified in 
the Pandalidae family and commonly referred to as coldwater shrimp, in 
any state of processing; 3) fresh shrimp and prawns whether shell-on or 
peeled (HTSUS subheadings 0306.23.00.20 and 0306.23.00.40); 4) shrimp 
and prawns in prepared meals (HTSUS subheading 1605.20.05.10); 5) dried 
shrimp and prawns; 6) canned warmwater shrimp and prawns (HTSUS 
subheading 1605.20.10.40); 7) certain dusted shrimp; and 8) certain 
battered shrimp.

[[Page 47202]]

Dusted shrimp is a shrimp-based product: 1) that is produced from fresh 
(or thawed-from-frozen) and peeled shrimp; 2) to which a ``dusting'' 
layer of rice or wheat flour of at least 95 percent purity has been 
applied; 3) with the entire surface of the shrimp flesh thoroughly and 
evenly coated with the flour; 4) with the non-shrimp content of the end 
product constituting between four and 10 percent of the product's total 
weight after being dusted, but prior to being frozen; and 5) that is 
subjected to IQF freezing immediately after application of the dusting 
layer. Battered shrimp is a shrimp-based product that, when dusted in 
accordance with the definition of dusting above, is coated with a wet 
viscous layer containing egg and/or milk, and par-fried.
    The products covered by this order are currently classified under 
the following HTSUS subheadings: 0306.13.00.03, 0306.13.00.06, 
0306.13.00.09, 0306.13.00.12, 0306.13.00.15, 0306.13.00.18, 
0306.13.00.21, 0306.13.00.24, 0306.13.00.27, 0306.13.00.40, 
1605.20.10.10, and 1605.20.10.30. These HTSUS subheadings are provided 
for convenience and for customs purposes only and are not dispositive, 
but rather the written description of the scope of this order is 
dispositive.

Period of Review

    The POR is February 1, 2007, through August 14, 2007.

Cost of Production

    As discussed in the Preliminary Results, we conducted this 
administrative review to determine whether Promarisco and Songa made 
third country sales of the foreign like product during the POR at 
prices below their costs of production (COP) within the meaning of 
section 773(b)(1) of the Act. For Promarisco and Songa, we performed 
the cost test for these final results following the same methodology as 
in the Preliminary Results, except as discussed in the decision 
memorandum accompanying this notice (the Decision Memo).
    We found that 20 percent or more of each respondent's sales of a 
given product during the reporting period were at prices less than the 
weighted-average COP for this period. Thus, we determined that these 
below-cost sales were made in ``substantial quantities'' within an 
extended period of time and at prices which did not permit the recovery 
of all costs within a reasonable period of time in the normal course of 
trade. See sections 773(b)(2)(B) - (D) of the Act.
    Therefore, for purposes of these final results, we find that 
Promarisco and Songa made below-cost sales not in the ordinary course 
of trade. Consequently, we disregarded these sales for each respondent 
and used the remaining sales as the basis for determining normal value 
pursuant to section 773(b)(1) of the Act.

Analysis of Comments Received

    All issues raised in the case briefs by parties to this 
administrative review, and to which we have responded, are listed in 
the Appendix to this notice and addressed in the Decision Memo, which 
is adopted by this notice. Parties can find a complete discussion of 
all issues raised in this review and the corresponding recommendations 
in this public memorandum, which is on file in the Central Records 
Unit, HCHB Room 1117, of the main Department building.
    In addition, a complete version of the Issues and Decision 
Memorandum (Decision Memo) can be accessed directly on the Web at 
http://ia.ita.doc.gov/frn/. The paper copy and electronic version of 
the Decision Memo are identical in content.

Changes Since the Preliminary Results

    Based on our analysis of the comments received, we have made 
certain changes in the margin calculations for Promarisco and Songa. 
These changes are discussed in the relevant sections of the Decision 
Memo.
    In addition, we have changed our calculation of the margins and 
assessment rates applicable to the companies not selected for 
individual examination to reflect the simple average of the margins 
calculated for the respondents selected for individual examination in 
this review, rather than the weighted average of these margins, 
excluding de minimis margins or margins based entirely on facts 
available (FA). This is consistent with our current practice with 
respect to the calculation of the margins and assessment rates 
applicable to non-mandatory respondents in cases such as the instant 
one, where there are only two mandatory respondents with above de 
minimis margins, or margins based entirely upon FA. See Ball Bearings 
and Parts Thereof from France, Germany, Italy, Japan, and the United 
Kingdom: Preliminary Results of Antidumping Duty Administrative Reviews 
and Intent to Rescind Reviews in Part, 73 FR 25654, 25655 (May 7, 
2008); unchanged in Ball Bearings and Parts Thereof from France, 
Germany, Italy, Japan, and the United Kingdom: Final Results of 
Antidumping Duty Administrative Reviews and Rescission of Reviews in 
Part, 73 FR 52823, 52824 (September 11, 2008).

Final Results of Review

    We determine that weighted-average dumping margins exist for the 
respondents for the period February 1, 2007, through August 14, 2007, 
as follows:

------------------------------------------------------------------------
                Manufacturer/Exporter                   Percent Margin
------------------------------------------------------------------------
Promarisco, S.A.....................................                0.85
Sociedad Nacional de Galapagos C.A. (Songa).........                0.75
------------------------------------------------------------------------

Review-Specific Average Rate Applicable to the Following Companies:\2\
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    \2\ This rate is based on the simple average of the margins 
calculated for those companies selected for individual examination, 
excluding de minimis margins or margins based entirely on FA, as 
discussed above.

------------------------------------------------------------------------
                Manufacturer/Exporter                   Percent Margin
------------------------------------------------------------------------
Agricola e Industrial Ecuaplantation SA.............                0.80
Agrol SA............................................                0.80
Alberto Xavier Mosquera Rosado......................                0.80
Alquimia Marina SA..................................                0.80
Babychic SA.........................................                0.80
Biolife SA..........................................                0.80
Braistar............................................                0.80
Camaronera Jenn Briann..............................                0.80
Camarones...........................................                0.80
Comar Cia Ltda......................................                0.80
Doblertel SA........................................                0.80
Dumary SA...........................................                0.80
Dunci SA............................................                0.80
El Rosario Ersa SA..................................                0.80
Empacadora Bilbo SA (Bilbosa).......................                0.80
Empacadora del Pacifico SA (EDPACIF SA).............                0.80
Empacadora Dufer Cia. Ltda. (DUFER).................                0.80
Empacadora Grupo Gran Mar (Empagran) SA.............                0.80
Empacadora Nacional CA..............................                0.80
Empacadora y Exportadora Calvi Cia. Ltda............                0.80
Emprede SA..........................................                0.80
Estar CA............................................                0.80
Exporclam SA........................................                0.80
Exporklore SA.......................................                0.80
Exportadora Bananera Noboa..........................                0.80
Exportadora de Productos de Mar (Produmar)..........                0.80
Exportadora del Oceano (Oceanexa) CA................                0.80
Exportadora Langosmar SA............................                0.80

[[Page 47203]]

 
Exportadora del Oceano Pacifico SA (OCEANPAC).......                0.80
Exports Langosmar SA................................                0.80
Fortumar Ecuador SA.................................                0.80
Gambas del Pacifico SA..............................                0.80
Gondi SA............................................                0.80
Hector Canino Marty.................................                0.80
Hectorosa SA........................................                0.80
Industrial Pesquera Santa Priscila SA (Santa                        0.80
 Priscila)..........................................
Inepexa SA..........................................                0.80
Jorge Luis Benitez Lopez............................                0.80
Karpicorp SA........................................                0.80
Luis Loaiza Alvarez.................................                0.80
Mardex Cia. Ltda....................................                0.80
Marine..............................................                0.80
Marines CA..........................................                0.80
Mariscos de Chupadores Chupamar.....................                0.80
Mariscos del Ecuador C. Ltda. (Marecuador)..........                0.80
Natural Select SA...................................                0.80
Negocios Industriales Real Nirsa SA (NIRSA).........                0.80
Novapesca SA........................................                0.80
Ocean Fish..........................................                0.80
Oceaninvest SA......................................                0.80
Oceanmundo SA.......................................                0.80
Oceanpro SA.........................................                0.80
Operadora y Procesadora de Productos Marinos SA                     0.80
 (Omarsa)...........................................
Oyerly SA...........................................                0.80
P.C. Seafood SA.....................................                0.80
Pacfish SA..........................................                0.80
PCC Congelados & Frescos SA.........................                0.80
Pescazul SA.........................................                0.80
Peslasa SA..........................................                0.80
Phillips Seafoods of Ecuador CA (Phillips)..........                0.80
Pisacua SA..........................................                0.80
Procesadora del Rio SA (Proriosa)...................                0.80
Productos Cultivados del Mar Proc...................                0.80
Productos Cultivados del Mar Proculmar Cia. Ltda....                0.80
Productos del Mar Santa Rosa Cia. Ltda. (Promarosa).                0.80
Propemar SA.........................................                0.80
Provefrut...........................................                0.80
Rommy Roxana Alvarez Anchundia......................                0.80
Sea Pronto Hector Marty Canino (Sea Pronto).........                0.80
Sociedad Atlantico Pacifico SA......................                0.80
Soitgar SA..........................................                0.80
Studmark SA.........................................                0.80
Tecnica y Comercio de la Pesca CA (TECOPESCA).......                0.80
Tolyp SA............................................                0.80
Trans Ocean.........................................                0.80
Transcity SA........................................                0.80
Transmarina CA......................................                0.80
Transocean Ecuador SA...............................                0.80
Uniline Transport System............................                0.80
------------------------------------------------------------------------

Assessment

    The Department shall determine, and CBP shall assess, antidumping 
duties on all appropriate entries.
    Because Promarisco and Songa each reported the entered value of all 
of their U.S. sales, we have calculated an importer-specific ad valorem 
duty assessment rate based on the ratio of the total amount of 
antidumping duties calculated for the examined sales to the total 
entered value of the examined sales for each respective importer. We 
have calculated a single importer-specific assessment rate for 
Promarisco and Songa, consistent with our practice in the final results 
of the 2006 2007 administrative review (see Certain Frozen Warmwater 
Shrimp from Ecuador: Final Results and Partial Rescission of 
Antidumping Duty Administrative Review, 73 FR 39945 (July 11, 2008)). 
See also Ball Bearings and Parts Thereof from France, Germany, Italy, 
Japan, and Singapore: Final Results of the Antidumping Administrative 
Reviews, Rescission of Administrative Review in part, and Determination 
Not to Revoke Order in Part, 68 FR 35623 (June 16, 2003), and 
accompanying Issues and Decision Memorandum at Comment 9B; and Notice 
of Final Results of Antidumping Duty Administrative Review and Notice 
of Final Results of Antidumping Duty Changed Circumstances Review: 
Certain Softwood Lumber Products From Canada, 69 FR 75921 (December 20, 
2004), and accompanying Issues and Decision Memorandum at Comment 13.
    For the responsive companies which were not selected for individual 
review, we have calculated an assessment rate based on the simple 
average of the margins calculated for the companies selected for 
individual review excluding any which are de minimis or determined 
entirely on FA.
    We will instruct Customs and Border Protection (CBP) to assess 
antidumping duties on all appropriate entries covered by this review if 
any importer-specific assessment rate calculated in the final results 
of this review is above de minimis (i.e., at or above 0.50 percent). 
Pursuant to 19 CFR 351.106(c)(2), we will instruct CBP to liquidate 
without regard to antidumping duties any entries for which the 
assessment rate is de minimis (i.e., less than 0.50 percent). See 19 
CFR 351.106(c)(1). The Department will issue assessment instructions to 
CBP 15 days after the date of publication of these final results of 
review.
    The Department clarified its ``automatic assessment'' regulation on 
May 6, 2003. See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) (Assessment 
Policy Notice). This clarification will apply to entries of subject 
merchandise during the POR produced by companies included in these 
final results of review for which the reviewed companies did not know 
that the merchandise they sold to the intermediary (e.g., a reseller, 
trading company, or exporter) was destined for the United States. In 
such instances, we will instruct CBP to liquidate unreviewed entries at 
the all-others rate established in the LTFV investigation if there is 
no rate for the intermediary involved in the transaction. See 
Assessment Policy Notice for a full discussion of this clarification.

Discontinuation of Cash Deposit Requirements

    On August 15, 2007, in accordance with sections 129(b)(4) and 
129(c)(1)(B) of the Uruguay Round Agreements Act, the U.S. Trade 
Representative, after consulting with the Department and Congress, 
directed the Department to implement its determination to revoke the 
antidumping duty order on certain frozen warmwater shrimp from Ecuador. 
See Implementation of the Findings of the WTO Panel in United States 
Antidumping Measure on Shrimp from Ecuador: Notice of Determination 
Under section 129 of the Uruguay Round Agreements Act and Revocation of 
the Antidumping Duty Order on Frozen Warmwater Shrimp from Ecuador, 72 
FR 48257 (August 23, 2007). Accordingly, the antidumping duty order on 
certain frozen warmwater shrimp from Ecuador was revoked effective 
August 15, 2007. As a result, we have instructed CBP to discontinue 
collection of cash deposits of antidumping duties on entries of the 
subject merchandise.

Notification to Importers

    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 this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping

[[Page 47204]]

duties occurred and the subsequent assessment of double antidumping 
duties.

Notification to Interested Parties

    This notice serves as the only reminder to parties subject to 
administrative protective order (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 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.
    We are issuing and publishing these final results of review in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    September 8, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.

Appendix Issues in Decision Memo

General Comments:

Comment 1: Offsetting of Negative Margins
Comment 2: Using CBP Data for Respondent Selection
Comment 3: Restricting Count-Size Comparisons Under the Model-Matching 
Methodology
Comment 4: Assessment Rate Assigned to Companies Receiving the Review-
Specific Average Rate
Comment 5: Reporting of Raw Material Costs

Company-Specific Comments:

Promarisco

Comment 6: Use of Adverse Facts Available to Calculate Promarisco's 
Imputed Credit Expenses
Comment 7: Treatment of Promarisco's Bill of Lading Fees and Analysis 
and Inspection Fees
Comment 8: Adjustment of Promarisco's Indirect Selling Expenses
Comment 9: Treatment of Promarisco's U.S. and Comparison-Market Billing 
Adjustments
Comment 10: Payment Date Assigned for Certain U.S. sales
Comment 11: Treatment of Write-offs in G&A Expenses
Comment 12: Treatment of Promarisco's Interest Income Offset
Comment 13: Processing Costs for Block-Frozen Products
Comment 14: Calculation of Entered Value for a Certain U.S. Sale

Songa

Comment 15: Revision of Count-Size Range Model-Match Coding for Certain 
Head-On Shrimp Products
Comment 16: Completeness of Indirect Selling Expense Reporting
Comment 17: Inclusion of Foreign Exchange Losses in Songa's Financial 
Expense Ratio
Comment 18: Treatment of Depreciation for Revalued Fixed Assets in 
Fixed Overhead Costs
Comment 19: Amortization of the Cost of Export Certificates in 
Financial Expenses
Comment 21: Offset Adjustment to G&A Expenses for Certain Non-Operating 
Income Items
[FR Doc. E9-22186 Filed 9-14-09; 8:45 am]
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