[Federal Register Volume 76, Number 147 (Monday, August 1, 2011)]
[Notices]
[Pages 45775-45777]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-19388]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-552-802]


Fourth New Shipper Review of Certain Frozen Warmwater Shrimp From 
the Socialist Republic of Vietnam: Final Results of Antidumping Duty 
New Shipper Review

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

SUMMARY: On April 13, 2011, the Department of Commerce (the 
``Department'') published the preliminary results of the fourth new 
shipper review (``NSR'') on certain frozen warmwater shrimp 
(``shrimp'') from the Socialist Republic of Vietnam (``Vietnam''), 
covering the period of review (``POR'') of February 1, 2010-July 31, 
2010.\1\ The Department received no comments on its Preliminary 
Results.
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    \1\ See Certain Frozen Warmwater Shrimp from the Socialist 
Republic of Vietnam: Preliminary Results of Antidumping Duty New 
Shipper Review, 76 FR 20627 (April 13, 2011) (``Preliminary 
Results'').

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DATES: Effective Date: August 1, 2011.

FOR FURTHER INFORMATION CONTACT: Paul Walker, AD/CVD Operations, Import 
Administration, International Trade Administration, U.S. Department of

[[Page 45776]]

Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
20230; telephone: (202) 482-0413.

Case History

    The Department invited interested parties to comment on the 
Preliminary Results. On May 13, 2011, Quoc Viet Seaproducts Processing 
Trading and Import-Export Co., Ltd. (``Quoc Viet'') submitted a case 
brief.\2\ No other interested party submitted a case brief. On May 16, 
2011 Quoc Viet withdrew its case brief.\3\ On June 23, 2011 the 
Department released a letter concerning labor wage rates.\4\ On July 7, 
2011 Quoc Viet submitted comments on labor wage rates. On July 11, 2011 
Quoc Viet withdrew its labor wage rate comments.\5\ As a consequence, 
there are no case briefs, comments or hearing requests since the 
Preliminary Results on the record of this NSR.
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    \2\ See Quoc Viet's May 13, 2011 submission.
    \3\ According to Quoc Viet, because no other party submitted 
comments on the final results, and because the issues raised by Quoc 
Viet in its case brief would have no impact on the Preliminary 
Determination, which has already established that Quoc Viet is not 
dumping, Quoc Viet withdrew its case brief. See Quoc Viet's May 16, 
2011 submission.
    \4\ See the Department's letter dated June 23, 2011.
    \5\ Quoc Viet reiterated its statements made in its May 16, 
2011, submission, that that its comments would have no impact on the 
Preliminary Results, and thus, withdrew its comments. See Quoc 
Viet's July 11, 2011 submission.
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Scope of Order

    The scope of the order includes certain warmwater shrimp and 
prawns, whether frozen, wild-caught (ocean harvested) or farm-raised 
(produced by aquaculture), head-on or head-off, shell-on or peeled, 
tail-on or tail-off,\6\ deveined or not deveined, cooked or raw, or 
otherwise processed in frozen form.
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    \6\ ``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 (``HTS''), 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 (including dusted shrimp), 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 1605.20.1020); (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 0306.23.0020 and 0306.23.0040); (4) shrimp 
and prawns in prepared meals (HTS subheading 1605.20.0510); (5) dried 
shrimp and prawns; (6) canned warmwater shrimp and prawns (HTS 
subheading 1605.20.1040); and (7) certain battered shrimp. Battered 
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 individually quick frozen (``IQF'') freezing immediately 
after application of the dusting layer. When dusted in accordance with 
the definition of dusting above, the battered shrimp product is also 
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 HTS subheadings: 0306.13.0003, 0306.13.0006, 
0306.13.0009, 0306.13.0012, 0306.13.0015, 0306.13.0018, 0306.13.0021, 
0306.13.0024, 0306.13.0027, 0306.13.0040, 1605.20.1010 and 
1605.20.1030. These HTS 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.

Labor Wage Rate

    Section 733(c) of the Tariff Act of 1930, as amended (the ``Act''), 
provides that the Department will value the factors of production 
(``FOP'') in NME cases using the best available information regarding 
the value of such factors in a market economy (``ME'') country or 
countries considered to be appropriate by the administering authority. 
The Act requires that when valuing FOP, the Department utilize, to the 
extent possible, the prices or costs of factors of production in one or 
more ME countries that are (1) At a comparable level of economic 
development and (2) significant producers of comparable merchandise.\7\
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    \7\ See section 773(c)(4) of the Act.
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    Previously, the Department used regression-based wages that 
captured the worldwide relationship between per capita Gross National 
Income (``GNI'') and hourly manufacturing wages, pursuant to section 
351.408(c)(3) of the Department's regulations, to value the 
respondent's cost of labor. However, on May 14, 2010 the Court of 
Appeals for the Federal Circuit (``CAFC''), in Dorbest Ltd. v. United 
States, 604 F.3d 1363, 1372 (Fed. Cir. 2010) (``Dorbest''), invalidated 
section 351.408(c)(3) of the Department's regulations. As a consequence 
of the CAFC's ruling in Dorbest, the Department no longer relies on the 
regression-based wage rate methodology described in its regulations. On 
February 18, 2011 the Department published a request for public comment 
on the interim methodology, and the data sources.\8\
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    \8\ See Antidumping Methodologies in Proceedings Involving Non-
Market Economies: Valuing the Factor of Production: Labor, Request 
for Comment, 76 FR 9544 (Feb. 18, 2011).
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    On June 21, 2011 the Department revised its methodology for valuing 
the labor input in NME antidumping proceedings.\9\ In Labor 
Methodologies, the Department determined that the best methodology to 
value the labor input is to use industry-specific labor rates from the 
primary surrogate country. Additionally, the Department determined that 
the best data source for industry-specific labor rates is Chapter 6A: 
Labor Cost in Manufacturing, from the International Labor Organization 
(``ILO'') Yearbook of Labor Statistics (``Yearbook'').
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    \9\ See Antidumping Methodologies in Proceedings Involving Non-
Market Economies: Valuing the Factor of Production: Labor, 76 FR 
36092 (June 21, 2011) (``Labor Methodologies'').
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    As Bangladesh does not report labor data to the ILO, we are unable 
to use

[[Page 45777]]

Chapter 6 data to value Quoc Viet's labor wage rate for these final 
results. However, the record does contain a labor value for shrimp 
processing in Bangladesh, published by the Bangladesh Bureau of 
Statistics. The Department finds this labor value to be the best 
available information on the record because it is specific to the 
industry being examined, and is therefore derived from industries that 
produce comparable merchandise. Because this value is not 
contemporaneous to the POR, we inflated it using the Consumer Price 
Index (``CPI'') rate for Bangladesh, as published in the International 
Financial Statistics of the International Monetary Fund. Thus, for the 
final results we valued labor using an industry-specific labor rate 
from the primary surrogate country. The calculated industry-specific 
wage rate is 16.71 Bangladeshi takas per hour. A more detailed 
description of the wage rate calculation methodology is provided in the 
Memorandum to the File, through Scot T. Fullerton, Program Manager, 
from Paul Walker, Case Analyst, ``Fourth New Shipper Review of Certain 
Frozen Warmwater Shrimp from the Socialist Republic of Vietnam: 
Surrogate Values for the Final Results,'' dated concurrently with this 
memorandum.
    As stated above, the Department valued Quoc Viet's labor using 
Bangladeshi government data. Because there is no record evidence as to 
whether this data contains all costs related to labor, including wages, 
benefits, housing, training, etc., we have made no adjustments to the 
surrogate financial ratios for the itemized detail of indirect labor 
costs, as noted in Labor Methodologies.

Final Results of Review

    The Department finds that the following margin exists for Quoc Viet 
for the period February 1, 2010-July 31, 2010:

              Certain Frozen Warmwater Shrimp From Vietnam
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           Manufacturer/Exporter                   Margin percent
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Quoc Viet.................................  0.00 (de minimis.)
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Assessment of Antidumping Duties

    Upon issuance of the final results, the Department will determine, 
and U.S. Customs and Border Protection (``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 the final results of review. Pursuant to section 
351.212(b)(1) of the Department's regulations, we will calculate 
importer-specific (or customer-specific) 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. In accordance with section 351.106(c)(2) of the 
Department's regulations, we will instruct CBP to liquidate, without 
regard to antidumping duties, all entries of subject merchandise during 
the POR for which the importer-specific assessment rate is zero or de 
minimis.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this new shipper review for all 
shipments of subject merchandise by Quoc Viet, entered, or withdrawn 
from warehouse, for consumption on or after the publication date, as 
provided by section 751(a)(2)(C) of the Tariff Act of 1930, as amended 
(the ``Act''): (1) For subject merchandise produced and exported by 
Quoc Viet, the cash deposit rate will be zero; (2) for subject 
merchandise exported by Quoc Viet, but not manufactured by Quoc Viet, 
the cash deposit rate will continue to be the Vietnam-wide rate of 
25.76 percent; and (3) for subject merchandise manufactured by Quoc 
Viet, but exported by any party other than Quoc Viet, the cash deposit 
rate will be the rate applicable to the exporter. These cash deposit 
requirements will remain in effect until further notice.

Notification to Importers

    This notice serves as a final reminder to importers of their 
responsibility under section 351.402(f)(2) of the Department's 
regulations to file a certificate regarding the reimbursement of 
antidumping duties prior to liquidation of the relevant entries during 
the POR. Failure to comply with this requirement could result in the 
Department's presumption that reimbursement of antidumping duties has 
occurred and the subsequent assessment of doubled antidumping duties.

Administrative Protective Orders

    This notice also serves as a final reminder to parties subject to 
the administrative protective order (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under the APO, in accordance with section 351.305 of the 
Department's regulations, which continues to govern business 
proprietary information in this segment of the proceeding. Timely 
written notification of the return or 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 this NSR notice in accordance with 
sections 751(a)(2)(b) and 777(i) of the Act.

    Dated: July 25, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-19388 Filed 7-29-11; 8:45 am]
BILLING CODE 3510-DS-P