[Federal Register Volume 79, Number 245 (Monday, December 22, 2014)]
[Notices]
[Pages 76304-76305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-29922]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-831]
Fresh Garlic From the People's Republic of China: Initiation of
Changed Circumstances Review of Jining Yongjia Trade Co., Ltd. and
Jinxiang County Shanfu Frozen Co., Ltd.
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) has received
information sufficient to warrant initiation of a changed circumstances
review of the antidumping duty order on fresh garlic from the People's
Republic of China (PRC). Based upon a request filed by Jining Yongjia
Trade Co., Ltd. (Yongjia), an exporter of fresh garlic to the United
States, the Department is initiating a changed circumstances review to
determine whether Yongjia's supplier, Jinxiang County Shanfu Frozen
Co., Ltd. (Shanfu II), is the successor-in-interest of the producer/
supplier of Yongjia with the same name, Shanfu (Shanfu I), examined in
Yongjia's new shipper review of this order.\1\
---------------------------------------------------------------------------
\1\ See Antidumping Duty Order: Fresh Garlic From the People's
Republic of China, 59 FR 59209 (November 16, 1994) (Order). See also
Fresh Garlic From the People's Republic of China: Final Results and
Rescission, In Part, of Twelfth New Shipper Reviews, 73 FR 56550
(September 29, 2008).
---------------------------------------------------------------------------
DATES: Effective Date: December 22, 2014.
FOR FURTHER INFORMATION CONTACT: Hilary E. Sadler, Esq., at (202) 482-
4340 or Mark Hoadley at (202) 482-3148, AD/CVD Operations, Office VII,
Enforcement & Compliance, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On November 16, 1994, the Department published notice of the Order
in the Federal Register.\2\ On October 8, 2014, Yongjia requested that
the Department conduct a changed circumstances review pursuant to
section 751(b)(1) of the Tariff Act of 1930, as amended (the Act), 19
CFR 351.216 and 19 CFR 351.221(c)(3), to determine that its supplier,
Shanfu II, is the successor-in-interest to the supplier of the same
name which the Department examined in Yongjia's new shipper review for
purposes of this antidumping duty order. In its request, Yongjia stated
that changes in ownership in Shanfu I had taken place, and provided
business licenses before and after the change in ownership, a tax
payment notice, a marriage license, and information on the company's
ownership and customers before and after the ownership change. On
November 5, 2014, the petitioners \3\ submitted comments opposing this
initiation.
---------------------------------------------------------------------------
\2\ See id.
\3\ The petitioners are the Fresh Garlic Producers Association
and its individual members: Christopher Ranch L.L.C., The Garlic
Company, Valley Garlic, and Vessey and Company, Inc.
---------------------------------------------------------------------------
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, 0703.20.0010, 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, and 2005.99.9700, of the Harmonized Tariff Schedule of
the United States (HTSUS).
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 to that effect.
Initiation of Changed Circumstances Review
Pursuant to section 751(b)(1) of the Act, the Department will
conduct a changed circumstances review upon receipt of information
concerning, or a request from an interested party for a review of, an
antidumping duty order which shows changed circumstances sufficient to
warrant a review of the order. In accordance with 19 CFR 351.216(d),
the Department has determined that the information submitted by Yongjia
constitutes sufficient evidence to conduct a changed circumstances
review of the Order.
In a changed circumstances review involving a successor-in-interest
determination, the Department typically examines several factors
including, but not limited to, changes in: (1) Management; (2)
production facilities; (3) supplier relationships; and (4) customer
base.\4\ While no single factor or combination of factors will
necessarily be dispositive, the Department generally will consider the
new company to be the successor to the predecessor if the resulting
operations are essentially the same as those of the predecessor
company.\5\ Thus, if the record demonstrates that, with respect to the
production and sale of the subject merchandise, the new company
operates as the same business entity as the predecessor company, the
Department may assign the new company the cash deposit rate of its
predecessor.\6\
---------------------------------------------------------------------------
\4\ See, e.g., Certain Activated Carbon From the People's
Republic of China: Notice of Initiation of Changed Circumstances
Review, 74 FR 19934, 19935 (April 30, 2009).
\5\ See, e.g., Notice of Initiation of Antidumping Duty Changed
Circumstances Review: Certain Forged Stainless Steel Flanges From
India, 71 FR 327 (January 4, 2006).
\6\ See, e.g., Fresh and Chilled Atlantic Salmon From Norway;
Final Results of Changed Circumstances Antidumping Duty
Administrative Review, 64 FR 9979, 9980 (March 1, 1999).
---------------------------------------------------------------------------
[[Page 76305]]
Based on the information provided in its submission, Yongjia has
provided sufficient evidence to warrant a review to determine if Shanfu
II is the successor-in-interest to Shanfu I in the new shipper review.
Therefore, pursuant to section 751(b)(1) of the Act and 19 CFR
351.216(d), we are initiating a changed circumstances review.
We are also initiating a changed circumstances review of Yongjia as
well as on Shanfu II. Yongjia requested a changed circumstances review
of Shanfu II so that it may continue to receive the chain-rate
determined in its new shipper review. Normally, a company requests a
changed circumstances review for itself. In a successor-in-interest
changed circumstances review, we are determining whether a prior
calculated rate should apply to an entity under review. Here, the rate
is a chain-rate that applied to both Yongjia and Shanfu. To determine
whether this rate should continue to apply to both Yongjia and Shanfu,
we are initiating a review of both companies. Moreover, the statute
authorizes us to initiate a changed circumstances review when we
determine changed circumstances are sufficient to warrant a review.\7\
Here, changed circumstances related to both Shanfu and Yongjia exist,
warranting a review of both companies. First, Yongjia stated that a
change in ownership of Shanfu I raises the issue of affiliation between
Yongjia and Shanfu II. Second, Yongjia requests that we conduct a
collapsing analysis, to determine whether the Department should
collapse Yongjia and Shanfu II based on the change in ownership, and
treat the companies as a single entity for purposes of calculating
antidumping duty rates. For these reasons, we are initiating a changed
circumstances review of both parties to determine not only whether
Shanfu II is the successor-in-interest to Shanfu I but also to
determine whether the chain-rate is still applicable, or whether the
changed circumstances warrant the application of the PRC-wide rate to
Shanfu's and Yongjia's shipments instead.
---------------------------------------------------------------------------
\7\ See section 751(b)(1) of the Act. See also 19 CFR 351.216.
---------------------------------------------------------------------------
Additionally, the Department finds it is necessary to issue a
questionnaire requesting additional information for this review, as
provided for by 19 CFR 351.221(b)(2). For this reason, the Department
is not conducting this review on an expedited basis by publishing
preliminary results in conjunction with this notice of initiation. The
Department will publish in the Federal Register a notice of the
preliminary results of the changed circumstances review in accordance
with 19 CFR 351.221(b)(4) and 19 CFR 351.221(c)(3)(i). That notice will
set forth the factual and legal conclusions upon which our preliminary
results are based and a description of any action proposed.
Pursuant to 19 CFR 351.221(b)(4)(ii), interested parties will have
an opportunity to comment on the preliminary results of review. In
accordance with 19 CFR 351.216(e), the Department intends to issue the
final results of its antidumping duty changed circumstances review not
later than 270 days after the date on which the review is initiated.
During the course of this changed circumstances review, we will not
change the cash deposit requirements for the merchandise subject to
review. The cash deposit will only be altered, if warranted, pursuant
to the final results of this review.
This notice is published in accordance with sections 751(b)(l) and
777(i)(l) of the Act and 19 CFR 351.216(b) and 351.221(b)(1).
Dated: December 16, 2014.
Christian Marsh,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations.
[FR Doc. 2014-29922 Filed 12-19-14; 8:45 am]
BILLING CODE 3510-DS-P