[Federal Register Volume 88, Number 110 (Thursday, June 8, 2023)]
[Notices]
[Pages 37510-37512]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-12242]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-831]


Fresh Garlic From the People's Republic of China: Initiation of 
Circumvention Inquiry on the Antidumping Duty Order

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: In response to a request from the Fresh Garlic Producers 
Association and its individual members (collectively, the petitioners), 
the Department of Commerce (Commerce) is initiating a country-wide 
circumvention inquiry to determine whether imports of small and large 
garlic chunks from the People's Republic of China (China) are 
circumventing the antidumping duty (AD) order on fresh garlic from 
China.

DATES: Applicable June 8, 2023.

FOR FURTHER INFORMATION CONTACT: Charles DeFilippo or Jacob Saude; AD/
CVD Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-3979 or 202-482-0981, 
respectively.

[[Page 37511]]


SUPPLEMENTARY INFORMATION: 

Background

    On February 16, 2023, pursuant to section 781(c) of the Tariff Act 
of 1930, as amended (the Act), and 19 CFR 351.226(c), the petitioners 
filed a circumvention inquiry request alleging that small and large 
garlic chunks are circumventing the Order \1\ and, accordingly, should 
be included within the scope of the Order. \2\ On March 17, 2023, we 
deferred the decision to initiate this circumvention inquiry until the 
ongoing scope inquiry regarding large and small garlic chunks from 
Green Garden Produce LLC was complete.\3\ On April 13, 2023, Commerce 
officials held a videoconference and in-person meeting with counsel to 
the petitioners regarding their February 16, 2023, request that 
Commerce conduct a minor alterations circumvention inquiry.\4\ On March 
3, 2023, Commerce issued a supplemental questionnaire to the 
petitioners regarding their circumvention request.\5\ On May 10, 2023, 
the petitioners submitted their supplemental questionnaire response.\6\
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    \1\ See Antidumping Duty Order: Fresh Garlic from the People's 
Republic of China, 59 FR 59209 (November 16, 1994) (Order).
    \2\ See Petitioners' Letter, ``Petitioners' Request for 
Circumvention Ruling Pursuant to Section 781(c) of the Tariff Act of 
1930, As Amended,'' dated February 16, 2023.
    \3\ See Memorandum, ``Extension of Time to Determine Whether to 
Initiate Circumvention Inquiry,'' dated March 17, 2023.
    \4\ See Memorandum, ``Meeting with Petitioners' Counsel,'' dated 
April 13, 2023.
    \5\ See Commerce's Letter, ``Circumvention Inquiry Request 
Supplemental Questionnaire,'' dated May 3, 2023.
    \6\ See Petitioners' Letter, ``Response to Supplemental 
Questionnaire in Circumvention Inquiry Request,'' dated May 10, 
2023.
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Scope of the Order

    The products covered by this Order are all grades of garlic, whole 
or separated into constituent cloves, whether or not peeled, fresh, 
chilled, frozen, provisionally preserved, or packed in 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. A full 
description of the scope of the Order is provided in the Initiation 
Checklist.\7\
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    \7\ See Initiation Checklist, ``Initiation of the Circumvention 
Inquiry on the Antidumping Duty Order,'' dated concurrently with, 
and hereby adopted by, this notice (Initiation Checklist) at 7.
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Merchandise Subject to the Circumvention Inquiry

    The circumvention inquiry covers small and large garlic chunks 
produced in China and exported to the United States.

Initiation of Circumvention Inquiry

    Section 351.226(d) of Commerce's regulations states that if 
Commerce determines that a request for a circumvention inquiry 
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will 
accept the request and initiate a circumvention inquiry.'' Section 
351.226(c)(1) of Commerce's regulations, in turn, requires that each 
request for a circumvention inquiry allege ``that the elements 
necessary for a circumvention determination under section 781 of the 
Act exist'' and be ``accompanied by information reasonably available to 
the interested party supporting these allegations.'' The petitioners 
alleged circumvention pursuant to section 781(c) of the Act (minor 
alterations of merchandise).
    Section 781(c) of the Act provides that Commerce may find 
circumvention of an AD order when products which are of the class or 
kind of merchandise subject to an AD order have been ``altered in form 
or appearance in minor respects . . . whether or not included in the 
same tariff classification.'' Section 781(c)(2) of the Act provides an 
exception that ``{p{time} aragraph 1 shall not apply with respect to 
altered merchandise if the administering authority determines that it 
would be unnecessary to consider the altered merchandise within the 
scope of the AD order.''
    While the statute is silent as to what factors to consider in 
determining whether alterations are properly considered ``minor,'' the 
legislative history of this provision indicates that there are certain 
factors which should be considered before reaching a circumvention 
determination. In conducting a circumvention inquiry under section 
781(c) of the Act, Commerce has generally relied upon ``such criteria 
as the overall physical characteristics of the merchandise, the 
expectations of the ultimate users, the use of the merchandise, the 
channels of marketing and the cost of any modification relative to the 
total value of the imported products.'' \8\
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    \8\ See S. Rep. No.71, 100th Cong., 1st Sess. 100 (1987) (``In 
applying this provision, the Commerce Department should apply 
practical measurements regarding minor alterations, so that 
circumvention can be dealt with effectively, even where such 
alterations to an article technically transform it into a 
differently designated article.''). See also Affirmative Preliminary 
Determination of Circumvention of the Antidumping Duty Order on 
Certain Cut-to-Length Steel Plate from the People's Republic of 
China, 74 FR 33991, 33992 (July 14, 2009), unchanged in Affirmative 
Final Determination of Circumvention of the Antidumping Duty Order 
on Certain Cut-to-Length Carbon Steel Plate from the People's 
Republic of China, 74 FR 40565 (August 12, 2009).
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Analysis

    Based on our analysis of the petitioners' circumvention inquiry 
request, we determined that the petitioners satisfied the criteria 
under 19 CFR 351.226(c), and thus, pursuant to 19 CFR 
351.226(d)(1)(ii), we have accepted the request and are initiating the 
requested circumvention inquiry of the Order. For a full discussion of 
the basis for our decision to initiate the requested circumvention 
inquiry, see Initiation Checklist.
    Furthermore, pursuant to 19 CFR 351.226(c)(2)(iii), the petitioners 
noted that Green Garden is the entity that imports small and large 
garlic chunks into the United States. While the petitioners stated that 
they are not aware of other exporters and/or producers exporting small 
and large garlic chunks to the United States, beyond those that supply 
Green Garden, they are concerned that there are numerous Chinese 
entities that could begin production of significant volumes of IQF 
garlic chunks for exportation to the United States. Therefore, given 
the ease with which other Chinese exporters and/or producers could 
engage in the same activities as those supplying Green Garden, Commerce 
is initiating this circumvention inquiry on a country-wide basis.

Respondent Selection

    Commerce intends to base respondent selection on U.S. Customs and 
Border Protection (CBP) data. Commerce intends to place the CBP data on 
the record within five days of the publication of the initiation 
notice. Comments regarding the CBP data and respondent selection should 
be submitted within seven days after placement of the CBP data on the 
record of the relevant inquiry.
    Commerce intends to establish a schedule for questionnaire 
responses after respondent selection. A company's failure to completely 
respond to Commerce's requests for information may result in the 
application of partial or total facts available, pursuant to section 
776(a) of the Act, which may include adverse inferences, pursuant to 
section 776(b) of the Act.

Suspension of Liquidation

    Pursuant to 19 CFR 351.226(l)(1), Commerce intends to notify CBP of 
this

[[Page 37512]]

initiation and direct CBP to continue the suspension of liquidation of 
entries of products subject to this circumvention inquiry that were 
already subject to the suspension of liquidation under the Order and to 
apply the cash deposit rates that would be applicable if the products 
were determined to be covered by the scope of the Order. Should 
Commerce issue affirmative preliminary or final circumvention 
determinations, Commerce will follow the suspension of liquidation 
rules under 19 CFR 351.226(l)(2)-(4).

Notification to Interested Parties

    In accordance with 19 CFR 351.226(d) and section 781(c) of the Act, 
Commerce determines that the petitioners' request for a circumvention 
inquiry satisfies the requirements of 19 CFR 351.226(c). Accordingly, 
Commerce is notifying all interested parties of the initiation of this 
circumvention inquiry to determine whether small and large garlic 
chunks produced in and exported from China are circumventing the Order 
and the opportunity to comment on any additional entities that import 
small and large garlic chunks to the United States. In addition, we 
have included a description of the products that are the subject to 
this inquiry and an explanation of Commerce's decision to initiate this 
inquiry as provided in the accompanying Initiation Checklist.\9\ In 
accordance with 19 CFR 351.226(e)(1), Commerce intends to issue its 
preliminary circumvention determination no later than 150 days from the 
date of publication of the notice of initiation of this circumvention 
inquiry in the Federal Register.
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    \9\ See Initiation Checklist at 4 and 6.
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    This notice is published in accordance with section 781(c) of the 
Act, and 19 CFR 351.226(d)(1)(ii).

    Dated: June 1, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2023-12242 Filed 6-7-23; 8:45 am]
BILLING CODE 3510-DS-P