[Federal Register Volume 77, Number 200 (Tuesday, October 16, 2012)]
[Notices]
[Pages 63291-63293]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-25454]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-351-840]


Certain Orange Juice From Brazil: Final Results of Antidumping 
Duty Administrative Review and Final No Shipment Determination

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


DATES: Effective Date: October 16, 2012.
SUMMARY: On April 11, 2012, the Department of Commerce (the Department) 
published its preliminary results of the administrative review of the 
antidumping duty order on certain orange juice (OJ) from Brazil. This 
review covers four producers/exporters of the subject merchandise to 
the United States. The period of review (POR) is March 1, 2010, through 
February 28, 2011.
    After analyzing the comments received, we have made certain changes 
in the margin calculations. Therefore, these final results 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.''

FOR FURTHER INFORMATION CONTACT: Blaine Wiltse or Elizabeth Eastwood, 
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-
6345 or (202) 482-3874, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On April 11, 2012, the Department published in the Federal Register 
the preliminary results of the 2010-2011 administrative review of 
antidumping duty order on certain OJ from Brazil.\1\ Also in April 
2012, the Department issued supplemental questionnaires to each of the 
three respondents in this administrative review (i.e., Fischer S.A. 
Comercio, Industria, and Agricultura (Fischer), Louis Dreyfus 
Commodities Agroindustrial S.A. (Louis Dreyfus), and Sucocitrico 
Cutrale, S.A. (Cutrale)). We received responses to these supplemental 
questionnaires in the same month.
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    \1\ See Certain Orange Juice from Brazil: Preliminary Results of 
Antidumping Duty Administrative Review and Preliminary No Shipment 
Determination, 77 FR 21724 (Apr. 11, 2012) (Preliminary Results).
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    We invited parties to comment on our preliminary results of review. 
In May 2012, we received case briefs from the petitioners (i.e., 
Florida Citrus Mutual and Citrus World Inc.), Cutrale, Fischer, and 
Louis Dreyfus. We received rebuttal briefs from the petitioners. On 
July 20, 2012, the Department extended the final results in the current 
review to no later than October 9, 2012. See the Memorandum to 
Christian Marsh, Deputy Assistant Secretary, AD/CVD Operations, from 
Blaine Wiltse, Senior Trade Analyst, Office 2, AD/CVD Operations, 
entitled, ``Certain Orange Juice from Brazil: Extension of Deadline for 
Final Results of Antidumping Duty Administrative Review,'' dated July 
20, 2012.
    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 orange juice for transport 
and/or further manufacturing, produced in two different forms: (1) 
Frozen orange juice in a highly concentrated form, sometimes referred 
to as frozen concentrated orange juice for manufacture (FCOJM); and (2) 
pasteurized single-strength orange juice which has not been 
concentrated, referred to as not-from-concentrate (NFC). At the time of 
the filing of the petition, there was an existing antidumping duty 
order on frozen concentrated orange juice (FCOJ) from Brazil. See 
Antidumping Duty Order; Frozen Concentrated Orange Juice from Brazil, 
52 FR 16426 (May 5, 1987). Therefore, the scope of this order with 
regard to FCOJM covers only FCOJM produced and/or exported by those 
companies which were excluded or revoked from the pre-existing 
antidumping order on FCOJ from Brazil as of December 27, 2004. Those 
companies are Cargill Citrus Limitada, Coinbra Frutesp S.A. (Coinbra 
Frutesp),\2\ Cutrale, Fischer, and Montecitrus Trading S.A. 
(Montecitrus).
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    \2\ As discussed below, we find that Louis Dreyfus is the 
successor-in-interest to Coinbra Frutesp. See the ``Successor-in 
Interest'' section of this notice.
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    Excluded from the scope of the order are reconstituted orange juice 
and frozen concentrated orange juice for retail (FCOJR). Reconstituted 
orange juice is produced through further manufacture of FCOJM, by 
adding water, oils and essences to the orange juice concentrate. FCOJR 
is concentrated orange juice, typically at 42 Brix, in a frozen state, 
packed in retail-sized containers ready for sale to consumers. FCOJR, a 
finished consumer product, is produced through further manufacture of 
FCOJM, a bulk manufacturer's product.
    The subject merchandise is currently classifiable under subheadings 
2009.11.00, 2009.12.25, 2009.12.45, and 2009.19.00 of the Harmonized 
Tariff Schedule of the United States (HTSUS). These HTSUS subheadings 
are provided for convenience and for customs purposes only and are not 
dispositive. Rather, the written description of the scope of the order 
is dispositive.

Period of Review

    The POR is March 1, 2010, through February 28, 2011.

Successor-in-Interest

    As noted in the Preliminary Results, in its request for a review, 
Louis Dreyfus claimed that it is the successor-in-interest to Coinbra 
Frutesp and its wholly-owned subsidiary Coinbra Frutesp Agroinstrial 
Ltda. (Coinbra Frutesp Ag.), a producer of subject merchandise in 
Brazil. Based on Louis Dreyfus' submissions addressing the four factors 
with respect to this change in corporate structure (i.e., management, 
production facilities for the subject merchandise, supplier 
relationships, and customer base),\3\ in the preliminary results we 
preliminarily found that Coinbra Frutesp Ag.'s organizational 
structure, management, production facilities, supplier relationships, 
and

[[Page 63292]]

customers have remained essentially unchanged. Further, we found that 
Louis Dreyfus operates as the same business entity as Coinbra Frutesp 
Ag. with respect to the production and sale of OJ. Therefore, we 
preliminarily determined that Louis Dreyfus is the successor-in-
interest to Coinbra Frutesp. See Preliminary Results, 77 FR at 21726.
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    \3\ See Notice of Initiation and Preliminary Results of 
Antidumping Duty Changed Circumstances Review: Certain Softwood 
Lumber Products from Canada, 70 FR 50299, 50300-01 (Aug. 26, 2005) 
(setting forth the four factors to be considered for successorship 
determinations), unchanged in Notice of Final Results of Antidumping 
Duty Changed Circumstances Review: Certain Softwood Lumber Products 
from Canada, 70 FR 59721 (Oct. 13, 2005).
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    Since the preliminary results, no party to this proceeding has 
commented on this issue, and we have received no new information with 
respect to this issue. As a result, we continue to find that Louis 
Dreyfus is the successor-in-interest to Coinbra Frutesp.

Determination of No Shipments

    As noted in the Preliminary Results, we received a no-shipment 
claim from Montecitrus, named in the notice of initiation of this 
review, and we confirmed its claim with U.S. Customs and Border 
Protection (CBP). Because we find that the record indicates that 
Montecitrus did not export subject merchandise to the United States 
during the POR, we determine that it had no reviewable transactions 
during the POR.
    As we stated in the Preliminary Results, our former practice 
concerning respondents submitting timely no-shipment certifications was 
to rescind the administrative review with respect to those companies if 
we were able to confirm the no-shipment certifications through a no-
shipment inquiry with CBP. See Antidumping Duties; Countervailing 
Duties; Final rule, 62 FR 27296, 27393 (May 19, 1997); see also 
Stainless Steel Sheet and Strip in Coils from Taiwan: Final Results of 
Antidumping Duty Administrative Review, 75 FR 76700, 76701 (Dec. 9, 
2010). As a result, in such circumstances, we normally instructed CBP 
to liquidate any entries from the no-shipment company at the deposit 
rate in effect on the date of entry.
    In our May 6, 2003, clarification of the ``automatic assessment'' 
regulation, we explained that, where respondents in an administrative 
review demonstrate that they had no knowledge of sales through 
resellers to the United States, we would instruct CBP to liquidate such 
entries at the all-others rate applicable to the proceeding. See 
Antidumping and Countervailing Duty Proceedings: Assessment of 
Antidumping Duties, 68 FR 23954 (May 6, 2003) (Assessment Policy 
Notice).
    As noted in the Preliminary Results, because ``as entered'' 
liquidation instructions do not alleviate the concerns which the May 
2003 clarification was intended to address, we find it appropriate in 
this case to instruct CBP to liquidate any existing entries of 
merchandise produced by Montecitrus and exported by other parties at 
the all-others rate. In addition, we continue to find that it is more 
consistent with the May 2003 clarification not to rescind the review in 
part in these circumstances but, rather, to complete the review with 
respect to this company and issue appropriate instructions to CBP based 
on the final results of this administrative review. See the 
``Assessment Rates'' section of this notice below.

Cost of Production

    As discussed in the preliminary results, we conducted an 
investigation to determine whether Cutrale, Fischer, and Louis Dreyfus 
made home market sales of the foreign like product during the POR at 
prices below their costs of production (COP) within the meaning of 
section 773(b) of the Act. See Preliminary Results, 77 FR at 21731. For 
these final results, we performed the cost test following the same 
methodology as in the Preliminary Results, except that we used the COP 
database accompanying Fischer's April 2012 response in our calculations 
for Fischer. For further discussion, see the Issues and Decision 
Memorandum (Decision Memo), accompanying this notice, at Comment 9.
    We found 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)(1) and (2) of the Act.
    For purposes of these final results, we continue to find that 
Cutrale, Fischer, and Louis Dreyfus made below-cost sales not in the 
ordinary course of trade. Consequently, we disregarded these sales for 
each respondent and used the remaining sales (if any) as the basis for 
determining normal value (NV), pursuant to section 773(b)(1) of the 
Act. Where there were no home market sales made in the ordinary course 
of trade, we based NV on constructed value.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this administrative review are addressed in the Decision Memo, dated 
concurrently with, and hereby adopted by, this notice. A list of the 
issues addressed in the Decision Memo is appended to this notice. The 
Decision Memo is on file electronically via Import Administration's 
Antidumping and Countervailing Duty Centralized Electronic Services 
System (IA ACCESS). Access to IA ACCESS is available to registered 
users at http://iaaccess.trade.gov and in the Central Records Unit of 
the main Commerce Building, room 7046. In addition, a complete version 
of the Decision Memo is also accessible on the Web at http://ia.ita.doc.gov/frn. The paper copy and the 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 to the margin calculations. These changes are discussed 
in the relevant sections of the Decision Memo.

Final Results of Review

    We determine that the following weighted-average margin percentages 
exist for the period March 1, 2010, through February 28, 2011:

 
------------------------------------------------------------------------
                                                                Percent
                    Manufacturer/Exporter                        margin
------------------------------------------------------------------------
Sucocitrico Cutrale, S.A.....................................       2.63
Fischer S.A. Comercio, Industria, and Agricultura............       4.72
Louis Dreyfus Commodities Agroindustrial S.A.................      20.34
Montecitrus Trading S.A......................................          *
------------------------------------------------------------------------
\*\ No shipments or sales subject to this review.

Assessment

    The Department shall determine, and CBP shall assess, antidumping 
duties on all appropriate entries.
    We have calculated importer-specific ad valorem duty assessment 
rates based on the ratio of the total amount of antidumping duties 
calculated for the examined sales to the total entered value of the 
sales. We will instruct CBP to assess antidumping duties on all 
appropriate entries covered by this review if any importer-specific 
assessment rate is above de minimis (i.e., less than 0.50 percent). The 
Department intends to 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 Assessment Policy Notice, 68 FR 23954. 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 their merchandise was 
destined for the

[[Page 63293]]

United States. In such instances, we will instruct CBP to liquidate 
unreviewed entries at the all-others rate established in the less-than-
fair-value investigation if there is no rate for the intermediate 
company(ies) involved in the transaction.

Cash Deposit Requirements

    In April 2012, the International Trade Commission (ITC) determined, 
pursuant to section 751(c) of the Act, that revocation of this order 
would not be likely to lead to the continuation or recurrence of 
material injury to an industry in the United States within a reasonably 
foreseeable time. See Certain Orange Juice From Brazil, 77 FR 22343 
(Apr. 13, 2012). See also USITC Publication 4311 (April 2012), titled 
Certain Orange Juice from Brazil (Inv. No. 731-TA-1089). As a result of 
the ITC's negative determination, the Department revoked the order on 
OJ from Brazil on April 20, 2012, effective as of March 9, 2012 (i.e., 
the fifth anniversary of the date of publication in the Federal 
Register of the antidumping duty order). See Revocation of Antidumping 
Duty Order: Certain Orange Juice From Brazil, 77 FR 23659 (Apr. 20, 
2012). Consequently, the collection of cash deposits of antidumping 
duties on entries of the subject merchandise is no longer required.

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 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 results of review in accordance 
with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: October 9, 2012.
Paul Piquado,
Assistant Secretary for Import Administration

Appendix--Issues in Decision Memorandum

General Issues

1. Offsetting of Negative Margins
2. Treatment of By-Product Revenue in the Calculation of General and 
Administrative and Financial Expenses

Cutrale Issues

3. Constructed Export Price Offset for Cutrale
4. Use of Actual Brix To Calculate the Prices and Quantities for 
Cutrale's Home Market Sales
5. Inventory Carrying Costs for Cutrale's U.S. Sales
6. Capping of Certain Revenues Received by Cutrale by the Amount of 
Reported Expenses
7. Cutrale's Biological Assets

Fischer Issues

8. Calculation of Fischer's International Freight Expenses To 
Include Bunker Fuel
9. Ministerial Errors in Fischer's Cost Calculations
10. Loss on Hedge Operations Included in the Calculation of 
Fischer's Financial Expense Ratio
11. Exclusion of Long-Term Interest Income From the Calculation of 
Fischer's Financial Expense Ratio

Louis Dreyfus Issues

12. Date of Sale for Louis Dreyfus
13. Classification of Louis Dreyfus' U.S. Sales as CEP Sales
14 Calculation of Louis Dreyfus' Brokerage and Handling Expenses
15. Calculation and Application of Louis Dreyfus' U.S. Indirect 
Selling Expense Ratio
16. Use of Partial Adverse Facts Available for Louis Dreyfus' U.S. 
Indirect Selling Expenses and Inventory Carrying Costs
[FR Doc. 2012-25454 Filed 10-15-12; 8:45 am]
BILLING CODE 3510-DS-P