[Federal Register Volume 84, Number 142 (Wednesday, July 24, 2019)]
[Notices]
[Pages 35601-35604]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15745]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-831]
Fresh Garlic From the People's Republic of China: Final Results
of the 23rd Antidumping Duty Administrative Review; 2016-2017
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that Shandong
Jinxiang Zhengyang Import & Export Co., Ltd. (Zhengyang) made sales of
fresh garlic from the People's Republic of China (China) at less than
normal value during the period of review (POR) November 1, 2016 through
October 31, 2017. Commerce finds that Qingdao Sea-line International
Trading Co., Ltd. (Sea-line) withheld requested information,
significantly impeded the review, and did not cooperate to the best of
its ability. Accordingly, pursuant to sections 776(a) and (b) of the
Tariff Act of 1930, as amended (the Act), we are relying on adverse
facts available.
These determinations and the final dumping margins are discussed
below in the ``Final Results'' section of this notice.
DATES: Applicable July 24, 2019.
FOR FURTHER INFORMATION CONTACT: Kathryn Wallace or Alexander Cipolla,
AD/CVD Operations, Office VII, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: 202-482-6251
or 202-482-4956, respectively.
SUPPLEMENTARY INFORMATION:
Background
Commerce published the preliminary results of this administrative
review of the antidumping duty order on fresh garlic from China on
December 10, 2018.\1\ We preliminarily found that the mandatory
respondents, Zhengyang and Sea-line, sold subject merchandise to the
United States at less than normal value. Furthermore, we found that two
companies certified that they made no shipments during the POR and that
six companies, in addition to the mandatory respondents, qualified for
separate rate status.
---------------------------------------------------------------------------
\1\ See Fresh Garlic from the People's Republic of China:
Preliminary Results of Antidumping Duty Administrative Review; 2016-
2017, 83 FR 63479 (December 10, 2018) (Preliminary Results).
---------------------------------------------------------------------------
Commerce exercised its discretion to toll all deadlines affected by
the partial federal government closure from
[[Page 35602]]
December 22, 2018 through the resumption of operations on January 29,
2019.\2\ If the new deadline falls on a non-business day, in accordance
with Commerce's practice, the deadline will become the next business
day. The revised deadline for the final results was tolled to May 20,
2019.
---------------------------------------------------------------------------
\2\ See Memorandum to the Record from Gary Taverman, Deputy
Assistant Secretary for Antidumping and Countervailing Duty
Operations, performing the non-exclusive functions and duties of the
Assistant Secretary for Enforcement and Compliance, ``Deadlines
Affected by the Partia1 Shutdown of the Federal Government,'' dated
January 28, 2019. All deadlines in this segment of the proceeding
have been extended by 40 days.
---------------------------------------------------------------------------
Between March 8 and March 11, 2019, Zhengyang, Sea-line, and the
petitioners \3\ submitted their respective case briefs.\4\ On March 14,
2019, in response to requests from the petitioners \5\ and Sea-line,\6\
we extended the deadline for interested parties to submit rebuttal
briefs by five days.\7\ On March 20, 2019, Sea-line and the petitioners
submitted rebuttal briefs.\8\
---------------------------------------------------------------------------
\3\ The petitioners are the Fresh Garlic Producers Association
and its individual members: Christopher Ranch L.L.C.; The Garlic
Company; and Valley Garlic.
\4\ See Zhengyang's Letter, ``Fresh Garlic from the People's
Republic of China--Case Brief,'' dated March 8, 2019; see also Sea-
line's Letter, ``Fresh Garlic from the PRC: Case Brief of Qingdao
Sea-line International Trading Co., Ltd.,'' dated March 8, 2019;
Petitioners' Letter, ``Fresh Garlic from the People's Republic of
China: Petitioners' Case Brief,'' dated March 11, 2019.
\5\ See Petitioners' Letter, ``23rd Administrative Review of the
Antidumping Duty Order on Fresh Garlic from the People's Republic of
China--Petitioners' Request for Extension of deadline for Submission
of Rebuttal Case Briefs,'' dated March 12, 2019.
\6\ See Sea-line's Letter, ``Fresh Garlic from the PRC:
Extension Request for Submission of Rebuttal Brief on Behalf of
Qingdao Sea-Line International Trading Co., Ltd.,'' dated March 14,
2019.
\7\ See Memorandum, ``23rd Administrative Review of Fresh Garlic
from the People's Republic of China: Extension of Rebuttal Briefing
Schedule,'' dated March 14, 2019.
\8\ See Sea-line's Letter, ``Fresh Garlic from the PRC: Rebuttal
Brief of Qingdao Sea-line International Trading Co., Ltd.,'' dated
May 20, 2019; see also Petitioners' Letter, ``Fresh Garlic from the
People's Republic of China: Petitioners' Rebuttal Brief,'' dated
March 20, 2019.
---------------------------------------------------------------------------
On May 10, 2019, Commerce extended the deadlines for the final
results of this administrative review from 120 days to 180 days after
the publication of the Preliminary Results. The new deadline is now
July 18, 2019.\9\
---------------------------------------------------------------------------
\9\ See Memorandum, ``Fresh Garlic from the People's Republic of
China--23rd Administrative Review: Extension of Deadline for the
Final Results of Review,'' dated May 10, 2019.
---------------------------------------------------------------------------
Scope of the Order
The products covered by the order are all grades of garlic, whole
or separated into constituent cloves, whether or not peeled, fresh,
chilled, frozen, water or other neutral substance, but not prepared or
preserved by the addition of other ingredients or heat processing. The
differences between grades are based on color, size, sheathing, and
level of decay. The scope of the order does not include the following:
(a) Garlic that has been mechanically harvested and that is primarily,
but not exclusively, destined for non-fresh use; or (b) garlic that has
been specially prepared and cultivated prior to planting and then
harvested and otherwise prepared for use as seed. The subject
merchandise is used principally as a food product and for seasoning.
The subject garlic is currently classifiable under subheadings:
0703.20.0000, 0703.20.0005, 0703.20.0010, 0703.20.0015, 0703.20.0020,
0703.20.0090, 0710.80.7060, 0710.80.9750, 0711.90.6000, 0711.90.6500,
2005.90.9500, 2005.90.9700, 2005.99.9700, of the Harmonized Tariff
Schedule of the United States (HTSUS).\10\
---------------------------------------------------------------------------
\10\ See Antidumping Duty Order: Fresh Garlic from the People's
Republic of China, 59 FR 59209 (November 16, 1994).
---------------------------------------------------------------------------
Although the HTSUS subheadings are provided for convenience and
customs purposes, our written description of the scope of the order is
dispositive. In order to be excluded from the order, garlic entered
under the HTSUS subheadings listed above that is (1) mechanically
harvested and primarily, but not exclusively, destined for non-fresh
use or (2) specially prepared and cultivated prior to planting and then
harvested and otherwise prepared for use as seed must be accompanied by
declarations to U.S. Customs and Border Protection (CBP) to that
effect.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs are addressed in
the accompanying Issues and Decision Memorandum.\11\ The issues are
identified in Appendix I to this notice. The Issues and Decision
Memorandum is a public document and is on file electronically via
Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (ACCESS). ACCESS is available to
registered users at http://access.trade.gov and in the Central Records
Unit, room B8024 of the main Commerce building. In addition, a complete
version of the Issues and Decision Memorandum can be accessed directly
on the internet at http://enforcement.trade.gov/frn/. The signed and
electronic versions of the Issues and Decision Memorandum are identical
in content.
---------------------------------------------------------------------------
\11\ See Memorandum, ``Issues and Decision Memorandum for the
Final Results of the Antidumping Duty Administrative Review: Fresh
Garlic from the People's Republic of China; 2016-2017,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum) at ``Discussion of the Issues.''
---------------------------------------------------------------------------
Changes Since the Preliminary Results
Based on a review of the record and comments received from
interested parties regarding our Preliminary Results, and for the
reasons explained in the Issues and Decision Memorandum, we have
applied facts available with an adverse inference to Sea-line. As such,
and as described below, we have revised the margin assigned to the
separate rate respondents.
Final Determination of No Shipments
In the Preliminary Results, Commerce determined that the QTF-Entity
\12\ and Jining Shengtai Fruits & Vegetables Co., Ltd. each had no
shipments during the POR.\13\ As we have not received any information
to contradict our preliminary findings, we determine that these
entities did not have any shipments of subject merchandise during the
POR.
---------------------------------------------------------------------------
\12\ The QTF-Entity includes Qingdao Lianghe International Trade
Co., Ltd. (Lianghe); Qingdao Xintianfeng Foods Co., Ltd. (QXF);
Qingdao Tiantaixing Foods Co., Ltd. (QTF); Qingdao Tianhefeng Foods
Co., Ltd. (QTHF); Qingdao Beixing Trading Co., Ltd. (QBT); Hebei
Golden Bird Trading Co., Ltd.; and Huamei Consulting. See
Memorandum, ``23rd Administrative Review of the Antidumping Duty
Order on Fresh Garlic from the People's Republic of China: Status of
the QTF-Entity,'' dated October 22, 2018, at Attachment.
\13\ See Preliminary Results, 83 FR at 63480-82.
---------------------------------------------------------------------------
China-Wide Entity
As discussed in the Preliminary Results, the China-wide entity will
not be under review unless a party specifically requests, or Commerce
self-initiates, a review of the entity.\14\ Because no party requested
a review of the China-wide entity, the entity is not under review and
the entity's rate (i.e., $4.71 per-kilogram (kg)) is not subject to
change. Aside from the no-shipment companies discussed above, Commerce
considers all other companies for which a review was requested, and
which did not qualify for a separate rate, to be part of the China-wide
entity. A list of the companies determined to be part of the China-wide
entity is provided in Appendix III to this notice.
---------------------------------------------------------------------------
\14\ See Antidumping Proceedings: Announcement of Change in
Department Practice for Respondent Selection in Antidumping Duty
Proceedings and Conditional Review of the Nonmarket Economy Entity
in NME Antidumping Duty Proceedings, 78 FR 65963 (November 4, 2013).
---------------------------------------------------------------------------
Separate Rates
In the Preliminary Results, in accordance with section
777A(c)(2)(B)
[[Page 35603]]
of the Act, Commerce employed a limited examination methodology, as we
determined that it would not be practicable to examine individually all
companies for which a review request was made.\15\ There were six
exporters of subject merchandise from China that demonstrated their
eligibility for a separate rate but were not selected for individual
examination in this review. These six exporters are listed in Appendix
II.
---------------------------------------------------------------------------
\15\ See Memorandum, ``Selection of Respondents for Individual
Examination,'' dated February 28, 2018.
---------------------------------------------------------------------------
Neither the Act nor Commerce's regulations address the
establishment of the rate applied to individual companies not selected
for examination where Commerce limited its examination in an
administrative review pursuant to section 777A(c)(2) of the Act.
Commerce's practice in cases involving limited selection based on
exporters accounting for the largest volume of imports has been to look
to section 735(c)(5) of the Act for guidance, which provides
instructions for calculating the all-others rate in an investigation.
Section 735(c)(5)(A) of the Act instructs Commerce to base an all-
others rate on the rates established for individually investigated
producers and exporters, excluding any rates that are zero, de minimis,
or based entirely on facts available in investigations. In these final
results of review, we calculated a weighted-average dumping margin for
Zhengyang, but based Sea-line's margin on facts available. As
Zhengyang's margin is the only margin that is not either de minimis or
based entirely on adverse facts available, we have assigned Zhengyang's
margin to the separate rate respondents.
Final Results of Review
Commerce finds that the following weighted-average dumping margins
exist for the period November 1, 2016 through October 31, 2017:
------------------------------------------------------------------------
Weighted-average
Exporter dumping margin
(dollars per-kg)
------------------------------------------------------------------------
Shandong Jinxiang Zhengyang Import & Export Co., Ltd 2.87
Qingdao Sea-line International Trading Co., Ltd..... 4.71
Chengwu County Yuanxiang Industry & Commerce Co., 2.87
Ltd................................................
Jining Alpha Food Co., Ltd.......................... 2.87
Qingdao Maycarrier Import & Export Co., Ltd......... 2.87
Shandong Chenhe International Trading Co., Ltd...... 2.87
Shandong Happy Foods Co., Ltd....................... 2.87
Weifang Hongqiao International Logistics Co., Ltd... 2.87
------------------------------------------------------------------------
Assessment Rates
Pursuant to section 751(a)(2)(A) and (C) of the Act, and 19 CFR
351.212(b), Commerce has determined, and CBP shall assess, antidumping
duties on all appropriate entries of subject merchandise in accordance
with the final results of this review. Commerce intends to issue
appropriate assessment instructions directly to CBP 15 days after
publication of this notice.
Pursuant to Commerce's assessment practice in non-market economy
(NME) cases, for merchandise that was not reported in the U.S. sales
databases submitted by an exporter individually examined during this
review, but that entered under the case number of that exporter (i.e.,
at the individually-examined exporter's cash deposit rate), Commerce
will instruct CBP to liquidate such entries at the NME-wide rate. In
addition, if Commerce determines that an exporter under review had no
shipments of the subject merchandise, any suspended entries that
entered under that exporter's case number (i.e., at that exporter's
rate) will be liquidated at the NME-wide rate.\16\
---------------------------------------------------------------------------
\16\ For a full discussion of this practice, see Non-Market
Economy Antidumping Proceedings: Assessment of Antidumping Duties,
76 FR 65694 (October 24, 2011).
---------------------------------------------------------------------------
Cash Deposit Requirements
Commerce intends to instruct CBP to require a cash deposit for
antidumping duties equal to the weighted-average margin by which normal
value exceeds U.S. price. The following cash deposit requirements will
be effective upon publication of these final results of this
administrative review for shipments of the subject merchandise from
China entered, or withdrawn from warehouse, for consumption on or after
the publication date of this notice, as provided by section
751(a)(2)(C) of the Act: (1) For the exporters listed above, the cash
deposit rate will be equal to the weighted-average dumping margin
established in the final results of this review; (2) for previously
investigated or reviewed Chinese and non-Chinese exporters not listed
above that have separate rates, the cash deposit rate will continue to
be the exporter-specific rate published for the most recently completed
segment of this proceeding; (3) for all Chinese exporters of subject
merchandise which have not been found to be entitled to a separate
rate, the cash deposit rate will be the rate for the China-wide entity
(i.e., 4.71 dollars per-kg); and (4) for all non-Chinese exporters of
subject merchandise that have not received their own rate, the cash
deposit rate will be the rate applicable to the Chinese exporter that
supplied that non-Chinese exporter. These deposit requirements, when
imposed, shall remain in effect until further notice.
Disclosure
We intend to disclose the calculations performed within five days
of the date of publication of this notice to parties in this proceeding
in accordance with 19 CFR 351.224(b).
Notification to Importers
This notice also serves as a final reminder to importers of their
responsibility under 19 CFR 351.402(f) 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 Commerce's presumption that reimbursement
of antidumping duties has occurred, and the subsequent assessment of
double antidumping duties.
Administrative Protective Order
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), which continues to govern
business proprietary information in this segment of the proceeding.
Timely written notification of return or destruction of APO materials,
or conversion to judicial
[[Page 35604]]
protective order, is hereby requested. Failure to comply with the
regulations and the terms of an APO is a sanctionable violation.
Notification to Interested Parties
We are issuing and publishing these final results in accordance
with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.213.
Dated: July 18, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Final Determination of No Shipments
V. Use of Facts Available and Adverse Facts Available (AFA)
VI. Discussion of the Issues:
Comment 1: Whether Sea-line Provided Reliable Sales Information
to Calculate a Dumping Margin
Comment 2: Whether Romania is the Appropriate Surrogate Country
Comment 3: Whether Commerce Double-Counted Chemicals in Sea-
line's Calculation
VII. Recommendation
Appendix II
List of Companies Receiving a Separate Rate
1. Chengwu County Yuanxiang Industry & Commerce Co., Ltd.
2. Jining Alpha Food Co., Ltd.
3. Qingdao Maycarrier Import & Export Co., Ltd.
4. Shandong Chenhe International Trading Co., Ltd.
5. Shandong Happy Foods Co., Ltd.
6. Weifang Hongqiao International Logistics Co., Ltd.
Appendix III
List of Companies Not Receiving Separate Rate Status
1. Bestway Logistics Inc.
2. Chengwu Yuanxiang Industry and Commerce Co., Ltd.
3. China Union Agri. (Qingdao) Co., Ltd.
4. Dongying Richmond International
5. Jiangyoung Gunagafa Vegetable Professional Corperation
6. Jinan Farmlady Trading Co., Ltd.
7. Jining City Billion Garlic Products Co., Ltd.
8. Jining New Silk Road Food Co., Ltd.
9. Jining Rich Farmer International
10. Jining Yifa Garlic Produce Co., Ltd.
11. Jining Yongjia Trade Co., Ltd.
12. Jinxiang County Jinji Trade Co., Ltd.
13. Jinxiang Hongyu Freezing & Storing Co., Ltd.
14. Jinxiang Richfar Fruits & Vegetables Co., Ltd.
15. Juxian Huateng Organic Ginger Co., Ltd.
16. Laiwu Ever Green Food Co., Ltd.
17. Lanling Xinxinyuan Food Co., Ltd.
18. Pinacle Sourcing & Marketing, Ltd.
19. Qingdao Gabsan Trading Co., Ltd.
20. Qingdao Jiashan Trading Co., Ltd.
21. Qingdao Justop Industries and Trading Co., Ltd.
22. Qingdao Ritai Food Co., Ltd.
23. Shandong Galaxy International
24. Shandong Helu International Trade Co., Ltd.
25. Shandong Lejianda Food Co., Ltd.
26. Victoria Foods Co., Ltd.
27. Weifang Huashun Import & Export Co., Ltd.
28. Weifang Wangyuan Food Co., Ltd.
[FR Doc. 2019-15745 Filed 7-23-19; 8:45 am]
BILLING CODE 3510-DS-P