[Federal Register Volume 75, Number 125 (Wednesday, June 30, 2010)]
[Notices]
[Pages 37757-37759]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-15925]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-552-802]


Frozen Warmwater Shrimp From Vietnam: Initiation and Preliminary 
Results of Changed-Circumstances Review

AGENCY: Import Administration, International Trade Administration, 
Commerce.
SUMMARY: In response to a petition for a changed-circumstances review 
of Phuong Nam Co., Ltd., and Phuong Nam Foodstuff Corp., the Department 
of Commerce (the ``Department'') is initiating a changed-circumstances 
review of the antidumping duty order on frozen warmwater shrimp from 
the Socialist Republic of Vietnam (``Vietnam''). We have preliminarily 
concluded that Phuong Nam Foodstuff Corp. is the successor-in-interest 
to Phuong Nam Co., Ltd., and, as a result, should be accorded the same 
treatment previously accorded to Phuong Nam Co., Ltd., with regard to 
the antidumping duty order on frozen warmwater shrimp from Vietnam. 
Interested parties are invited to comment on these preliminary results.

DATES: Effective Date: June 30, 2010.

FOR FURTHER INFORMATION CONTACT: Scot Fullerton at (202) 482-1386 or 
Steven Hampton at (202) 482-0116, AD/CVD Operations, Office 9, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
20230.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the antidumping duty order on certain 
frozen warmwater shrimp from Vietnam on February 1, 2005. See Notice of

[[Page 37758]]

Amended Final Determination of Sales at Less Than Fair Value and 
Antidumping Duty Order: Certain Frozen Warmwater Shrimp From the 
Socialist Republic of Vietnam, 70 FR 5152 (February 1, 2005) (``VN 
Shrimp Order''). Phuong Nam Co., Ltd., and Phuong Nam Foodstuff Corp. 
(collectively ``Phuong Nam'') participated in the third and fourth 
administrative reviews of the VN Shrimp Order and requested an 
administrative review, and subsequent revocation, for the fifth 
administrative review. On May 14, 2010, Phuong Nam informed the 
Department that Phuong Nam Co., Ltd., had changed its name to Phuong 
Nam Foodstuff Corp. and petitioned the Department to conduct a changed-
circumstances review to confirm that Phuong Nam Foodstuff Corp. is the 
successor-in-interest to Phuong Nam Co., Ltd., for purposes of 
determining antidumping duties due as a result of the VN Shrimp 
Order.\1\
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    \1\ Phuong Nam claims that this name change was required to 
achieve the company's goal of listing the company on the Ho Chi Minh 
City Stock Exchange.
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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,\2\ deveined or not deveined, cooked or raw, or 
otherwise processed in frozen form.
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    \2\ ``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 (HTS 
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 (HTS subheadings 0306.23.00.20 and 0306.23.00.40); (4) 
shrimp and prawns in prepared meals (HTS subheading 1605.20.05.10); (5) 
dried shrimp and prawns; (6) canned warmwater shrimp and prawns (HTS 
subheading 1605.20.10.40); (7) certain dusted shrimp; and (8) certain 
battered shrimp. 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 pan-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.

Initiation of Changed-Circumstances Review

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the ``Act''), and 19 CFR 351.216, the Department will conduct a 
changed-circumstances review upon receipt of information concerning, or 
a request from an interested party for a review of, an antidumping duty 
order which shows changed circumstances sufficient to warrant a review 
of the order. The information submitted by Phuong Nam supporting its 
claim that Phuong Nam Foodstuff Corp. is the successor-in-interest to 
Phuong Nam Co., Ltd., demonstrates changed circumstances sufficient to 
warrant such a review. See 19 CFR 351.216(d).
    In accordance with the above-referenced regulation, the Department 
is initiating a changed-circumstances review to determine whether 
Phuong Nam Foodstuff Corp. is the successor-in-interest to Phuong Nam 
Co., Ltd. In determining whether one company is the successor-in-
interest to another, the Department examines a number of factors 
including, but not limited to, changes in management, production 
facilities, supplier relationships, and customer base. See Industrial 
Phosphoric Acid From Israel: Final Results of Antidumping Duty Changed 
Circumstances Review, 59 FR 6944 (February 14, 1994). Although no 
single factor will necessarily provide a dispositive indication of 
succession, generally, the Department will consider one company to be a 
successor-in-interest to another company if its resulting operation is 
similar to that of its predecessor. See Brass Sheet and Strip from 
Canada; Notice of Final Results of Antidumping Duty Administrative 
Review, 57 FR 20460 (May 13, 1992). Thus, if the evidence demonstrates 
that, with respect to the production and sale of the subject 
merchandise, the new company operates as the same business entity as 
the prior company, the Department will assign the new company the cash-
deposit rate of its predecessor. Id.; Notice of Final Results of 
Changed Circumstances Antidumping Administrative Review: 
Polychloroprene Rubber from Japan, 67 FR 58 (January 2, 2002); see also 
Circular Welded Non-Alloy Steel Pipe from Korea; Final Results of 
Antidumping Duty Changed Circumstances Review, 63 FR 20572 (April 27, 
1998), (where the Department found successorship where the company only 
changed its name and did not change its operations).
    In its May 14, 2010, submission, Phuong Nam provided information to 
demonstrate that Phuong Nam Foodstuff Corp. is the successor-in-
interest to Phuong Nam Co., Ltd. With respect to management prior to 
and following the name change, the submission indicates that four 
senior managers from Phuong

[[Page 37759]]

Nam Co., Ltd., have retained their management positions. These four 
individuals were also on the company's board of directors before and 
after the change in name. Since the change in corporate status, Phuong 
Nam has eliminated two positions, Vice Director of Personnel and Vice 
Director of Engineering, in order to streamline the corporation.
    In addition, the submission indicates that the production 
facilities for Phuong Nam Co., Ltd., and Phuong Nam Foodstuff Corp. are 
identical. Following the name change, Phuong Nam Foodstuff Corp. 
retained the same address and assets as Phuong Nam Co., Ltd. See 
Attachment 4 of Phuong Nam's May 14, 2010, submission.
    Attachment 5 of Phuong Nam's submission identifies entities that 
supplied packaging material and shrimp to the company before and after 
its transformation from a limited liability company to a joint-stock 
company. A significant number of suppliers for the joint-stock company 
are identical to suppliers of the limited liability company.
    Futher, Phuong Nam addressed changes to its customer base in 
Attachment 6 of its submission. This attachment contains two lists that 
identify the names and addresses of the company's customers before and 
after its transformation. There are numerous customers that appear on 
both lists, but the lists are not identical. Phuong Nam claims that 
changes in its customer base are due to the nature of competition in 
the seafood industry, where customers are periodically gained and lost.
    Given the few changes noted above, we have preliminarily determined 
that no major changes have occurred with respect to Phuong Nam's 
management, production facilities, suppliers, or customer base as a 
result of its name change to Phuong Nam Foodstuff Corp.
    When it concludes that expedited action is warranted, the 
Department may publish the notice of initiation and preliminary results 
for a changed-circumstances review concurrently. See 19 CFR 
351.221(c)(3)(ii). See also Initiation and Preliminary Results of 
Antidumping Duty Changed Circumstances Review: Canned Pineapple Fruit 
from Thailand; 69 FR 30878 (June 1, 2004). We have determined that 
expedition of this changed-circumstances review is warranted because we 
have the information necessary to make a preliminary finding already on 
the record. In this case, we preliminarily find that Phuong Nam 
Foodstuff Corp. is the successor-in-interest to Phuong Nam Co., Ltd., 
and, as such, is entitled to Phuong Nam Co., Ltd's, cash-deposit rate 
with respect to entries of subject merchandise.
    Should our final results remain the same as these preliminary 
results, effective the date of publication of the final results, we 
will instruct U.S. Customs and Border Protection to assign entries of 
merchandise produced or exported by Phuong Nam Foodstuff Corp. the 
antidumping duty cash-deposit rate applicable to Phuong Nam Co., Ltd.

Public Comment

    Any interested party may request a hearing within 14 days of 
publication of this notice. See 19 CFR 351.310(c). Any hearing, if 
requested, will be held 28 days after the date of publication of this 
notice or the first working day thereafter. Interested parties may 
submit case briefs and/or written comments no later than 14 days after 
the date of publication of this notice. Rebuttal briefs and rebuttals 
to written comments, which must be limited to issues raised in such 
briefs or comments, may be filed not later than 21 days after the date 
of publication of this notice. Parties who submit case briefs or 
rebuttal briefs in this changed-circumstances review are requested to 
submit with each argument (1) a statement of the issue and (2) a brief 
summary of the argument with an electronic version included. Consistent 
with 19 CFR 351.216(e), we will issue the final results of this 
changed-circumstances review no later than 270 days after the date on 
which this review was initiated or within 45 days of publication of 
these preliminary results if all parties agree to our preliminary 
finding.
    We are issuing and publishing this initiation and preliminary 
results notice in accordance with sections 751(b)(1) and 777(i)(1) of 
the Act and 19 CFR 351.216 and 351.221(c)(3).

    Dated: June 24, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-15925 Filed 6-29-10; 8:45 am]
BILLING CODE 3510-DS-P