[Federal Register Volume 75, Number 175 (Friday, September 10, 2010)]
[Notices]
[Pages 55307-55309]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-22650]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-863]


Honey From the People's Republic of China: Preliminary Intent To 
Rescind New Shipper Reviews

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department is conducting two new shipper reviews 
(``NSRs'') covering the period of review (``POR'') of December 1, 2008, 
through November 30, 2009. Because the sales made by Suzhou Shanding 
Honey Product Co., Ltd. (``Suzhou'') and Wuhu Fenglian Co., Ltd. 
(``Fenglian'') are not bona fide, we have preliminarily determined to 
rescind these NSRs.

DATES: Effective Date: September 10, 2010.

FOR FURTHER INFORMATION CONTACT: Katie Marksberry or Josh Startup, 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-
7906 or (202) 482-5260, respectively.

SUPPLEMENTARY INFORMATION:

General Background

    On December 12, 2009, and December 14, 2009, respectively, pursuant 
to section 751(a)(2)(B)(i) of the Tariff Act of 1930, as amended (``the 
Act''), and 19 CFR 351.214(c), the Department received NSR requests 
from Suzhou and Fenglian. On February 4, 2010, the Department published 
in the Federal Register its initiation of these NSRs.\1\
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    \1\ See Honey from the People's Republic of China: Initiation of 
New Shipper Antidumping Duty Reviews, 75 FR 5764 (February 4, 2010).
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    On February 4, 2010, the Department issued antidumping duty new 
shipper questionnaires to Fenglian and Suzhou. Between March 2010 and 
July 2010, the Department received timely filed original and 
supplemental questionnaire responses from Suzhou and Fenglian, 
respectively.
    On February 12, 2010, the Department exercised its discretion to 
toll the deadlines for all Import Administration cases by seven 
calendar days due to the February 5, through February 12, 2010, Federal 
Government closure. See Memorandum to the Record from Ronald Lorentzen, 
DAS for Import Administration, regarding ``Tolling of Administrative 
Deadlines as a Result of the Government Closure During the Recent 
Snowstorm,'' dated February 12, 2010.

Extension of Time Limits

    On July 7, 2010, the Department extended the time limits for these 
preliminary results by 90 days to November 2, 2010.\2\
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    \2\ See Honey From the People's Republic of China: Extension of 
Time Limit for the Preliminary Results for New Shipper Review, 75 FR 
38980 (July 7, 2010).
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Expansion of the POR

    When the sale of the subject merchandise occurs within the POR 
specified by the Department's regulations but the entry occurs after 
the POR, the specified POR may be extended unless it would be likely to 
prevent the completion of the review within the time limits set by the 
Department's regulations.\3\ Additionally, the preamble to the 
Department's regulations states that both the entry and the sale should 
occur during the

[[Page 55308]]

POR, and that under ``appropriate'' circumstances the Department has 
the flexibility to extend the POR.\4\ In this instance, both Suzhou and 
Fenglian's sales of subject merchandise were made during the POR 
specified by the Department's regulations but the shipment entered 
within thirty days after the end of that POR. The Department finds that 
extending the POR to capture these entry would not prevent the 
completion of the review within the time limits set by the Department's 
regulations. Therefore, the Department is expanding the POR for the new 
shipper review of Suzhou and Fenglian by thirty days.\5\
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    \3\ See 19 CFR 351.214(f)(2)(ii).
    \4\ See Antidumping Duties; Countervailing Duties; Final Rule, 
62 FR 27296, 27319-27320 (May 19, 1997).
    \5\ See Memorandum to The File, from Blaine Wiltse, 
International Trade Compliance Analyst, Office 9, regarding 
``Placing CBP Data on the Record of New Shipper Reviews of Honey 
from the People's Republic of China,'' dated January 8, 2010 (``CBP 
Entry Package Memo'').
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Surrogate Country and Surrogate Values

    On May 27, 2010, Suzhou and Fenglian (collectively ``respondents'') 
submitted market economy (``ME'') surrogate value (``SV'') information. 
On June 7, 2010, Petitioners \6\ submitted rebuttal surrogate value 
comments. No other party submitted surrogate country or SV data.
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    \6\ The Petitioners are the members of the American Honey 
Producers Association and the Sioux Honey Association (hereinafter 
referred to as ``Petitioners'').
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Scope of the Order

    The products covered by this order are natural honey, artificial 
honey containing more than 50 percent natural honey by weight, 
preparations of natural honey containing more than 50 percent natural 
honey by weight and flavored honey. The subject merchandise includes 
all grades and colors of honey whether in liquid, creamed, comb, cut 
comb, or chunk form, and whether packaged for retail or in bulk form.
    The merchandise subject to this order is currently classifiable 
under subheadings 0409.00.00, 1702.90.90 and 2106.90.99 of the 
Harmonized Tariff Schedule of the United States (``HTSUS''). Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, the Department's written description of the merchandise under 
order is dispositive.

Preliminary Intent To Rescind

    Consistent with the Department's practice, we investigated the bona 
fide nature of the sales made by Suzhou and Fenglian for this NSR. In 
evaluating whether or not a sale in a NSR is commercially reasonable, 
and therefore bona fide, the Department considers, 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 made on an 
arm's-length basis.\7\ Accordingly, the Department considers a number 
of factors in its bona fides analysis, ``all of which may speak to the 
commercial realities surrounding an alleged sale of the subject 
merchandise.'' \8\ An additional factor may be the business practices 
of U.S. customers.\9\ In TTPC, the court affirmed the Department's 
practice of considering that ``any factor which indicates that the sale 
under consideration is not likely to be typical of those which the 
producer will make in the future is relevant,'' \10\ and found that 
``the weight given to each factor investigated will depend on the 
circumstances surrounding the sale.'' \11\ Finally, in New Donghua, the 
CIT affirmed the Department's practice of evaluating the circumstances 
surrounding a NSR sale so that a respondent does not unfairly benefit 
from an atypical sale, and obtain a lower dumping margin than the 
producer's usual commercial practice would dictate.\12\ Where a review 
is based on a single sale, exclusion of that sale as non-bona fide 
necessarily must end the review.\13\
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    \7\ See Tianjin Tiancheng Pharmaceutical Co., Ltd. v. United 
States, 366 F. Supp. 2d 1246, 1250 (CIT 2005) (``TTPC'').
    \8\ See Hebei New Donghua Amino Acid Co., Ltd. v. United States, 
374 F. Supp. 2d 1333, 1342 (CIT 2005) (``New Donghua'') (citing 
Fresh Garlic From the People's Republic of China: Final Results of 
Antidumping Administrative Review and Rescission of New Shipper 
Review, 67 FR 11283 (March 13, 2002), and accompanying Issues and 
Decision Memorandum: New Shipper Review of Clipper Manufacturing 
Ltd.).
    \9\ See New Donghua, 374 F. Supp. 2d at 1343-44.
    \10\ See TTPC, 366 F. Supp. 2d at 1250.
    \11\ See id. at 1263.
    \12\ See New Donghua, 374 F. Supp. 2d at 1338.
    \13\ See TTPC, 366 F. Supp. 2d at 1249.
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Suzhou

    In analyzing Suzhou's single POR sale to the United States, the 
Department preliminarily determines that this sale is not bona fide, as 
it is not typical of Suzhou's usual commercial practices nor is it 
commercially reasonable. The Department reached this conclusion based 
on the totality of the circumstances, including the atypical nature of 
Suzhou's POR pricing, and the unusual business practices of Suzhou's 
U.S. customer. Because much of our analysis regarding the evidence of 
the bona fides of the transaction involves business proprietary 
information, a full discussion of the bases for our decision to find 
Suzhou's single POR sale not bona fide is set forth in the Memorandum 
to the File from Katie Marksberry, International Trade Specialist, 
through Catherine Bertrand, Program Manager, regarding ``Antidumping 
Duty New Shipper Review of Honey from the People's Republic of China: 
Bona Fide Analysis of the Sale Under Review for Suzhou Shanding Honey 
Product Co., Ltd.,'' dated September 2, 2010.

Fenglian

    In analyzing Fenglian's single POR sale to the United States, the 
Department preliminarily determines that this sale is not bona fide, as 
it is not typical of Fenglian's usual commercial practices nor is it 
commercially reasonable. The Department reached this conclusion based 
on the totality of the circumstances, including the atypical nature of 
Fenglian's POR pricing, and other proprietary circumstances concerning 
the nature of Fenglian's sale. Because much of our analysis regarding 
the evidence of the bona fides of the transaction involves business 
proprietary information, a full discussion of the bases for our 
decision to find Fenglian's single POR sale not bona fide is set forth 
in the Memorandum to the File from Josh Startup, International Trade 
Specialist, through Catherine Bertrand, Program Manager, regarding 
``Antidumping Duty New Shipper Review of Honey from the People's 
Republic of China: Bona Fide Analysis of the Sale Under Review for Wuhu 
Fenglian Co., Ltd.,'' dated September 2, 2010.
    Therefore, the Department is preliminarily rescinding the NSR for 
Suzhou and Fenglian, as we have preliminarily determined that each 
company's single sale during the POR is not bona fide and, 
consequently, not subject to review.
Comments
    In accordance with 19 CFR 351.301(c)(1), for the final results of 
these NSRs, interested parties may submit factual information to rebut, 
clarify, or correct factual information submitted by an interested 
party less than ten days before, on, or after, the applicable deadline 
for submission of such factual information. However, the Department 
notes that 19 CFR 351.301(c)(1) permits new information only insofar as 
it rebuts, clarifies, or

[[Page 55309]]

corrects information recently placed on the record.\14\
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    \14\ See Glycine from the People's Republic of China: Final 
Results of Antidumping Duty Administrative Review and Final 
Rescission in Part, 72 FR 58809 (October 17, 2007), and accompanying 
Issues and Decision Memorandum at Comment 2.
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    Interested parties may submit case briefs and/or written comments 
no later than 45 days after the date of publication of these 
preliminary results of this NSR. See 19 CFR 351.309(c)(ii). Rebuttal 
briefs and rebuttals to written comments, limited to issues raised in 
such briefs or comments, may be filed no later than 5 days after the 
deadline for submitting the case briefs. See 19 CFR 351.309(d). The 
Department requests that interested parties provide an executive 
summary of each argument contained within the case briefs and rebuttal 
briefs.
    Any interested party may request a hearing within 30 days of 
publication of these preliminary results. See 19 CFR 351.310(c). 
Requests should contain the following information: (1) The party's 
name, address, and telephone number; (2) the number of participants; 
and (3) a list of the issues to be discussed. Oral presentations will 
be limited to issues raised in the briefs. If we receive a request for 
a hearing, we plan to hold the hearing seven days after the deadline 
for submission of the rebuttal briefs at the U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
20230.
    The Department intends to issue the final results of this NSR, 
which will include the results of its analysis raised in any such 
comments, within 90 days of publication of these preliminary results, 
pursuant to section 751(a)(2)(B)(iv) of the Act.
Cash Deposit Requirements
    The following cash deposit requirements will be effective upon 
publication of the final results of this NSR for all shipments of 
subject merchandise from Suzhou or Fenglian 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 subject 
merchandise produced and exported by Suzhou or Fenglian, the cash 
deposit rate will continue to be the PRC-wide rate (i.e., $2.63 per 
kilogram); (2) for subject merchandise exported by Suzhou or Fenglian 
but not manufactured by Suzhou or Fenglian, the cash deposit rate will 
continue to be the PRC-wide rate (i.e., $2.63 per kilogram); and (3) 
for subject merchandise manufactured by Suzhou or Fenglian, but 
exported by any other party, the cash deposit rate will be the rate 
applicable to the exporter. These cash deposit requirements, when 
imposed, shall remain in effect until further notice.
Notification to Importers
    This notice serves as a preliminary 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 POR. Failure to comply with this 
requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    We are issuing and publishing this determination in accordance with 
sections 751(a)(2)(B) and 777(i) of the Act, and 19 CFR 351.214(h) and 
351.221(b)(4).

    Dated: September 2, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-22650 Filed 9-9-10; 8:45 am]
BILLING CODE 3510-DS-P