[Federal Register Volume 60, Number 108 (Tuesday, June 6, 1995)]
[Notices]
[Pages 29824-29826]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13822]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
[A-570-838]
Notice of Preliminary Critical Circumstances Determination: Honey
From the People's Republic of China (PRC)
AGENCY: International Trade Administration, Import Administration,
Department of Commerce.
EFFECTIVE DATE: June 6, 1995.
FOR FURTHER INFORMATION CONTACT: Karla Whalen or David J. Goldberger,
Office of Antidumping Investigations, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW., Washington, D.C. 20230; telephone
(202) 482-6309 and (202) 482-4136, respectively.
Applicable Statute and Regulations
Unless otherwise indicated, all citations to the statute and to the
Department's regulations are in reference to the provisions as they
existed on December 31, 1994.
Preliminary Critical Circumstances Determination
The Department of Commerce (the Department) published its
preliminary determination of sales at less-than-fair- value in this
investigation on March 20, 1995 (60 FR 14725). On April 27, 1995,
petitioners in this investigation alleged that critical circumstances
exist with respect to imports of honey from the PRC. In accordance with
19 CFR 353.16(b)(2)(ii), since this allegation was filed later than 20
days before the scheduled date of the preliminary determination, we
must issue our preliminary critical circumstances determination not
later than 30 days after the allegation was filed.
Section 733(e)(1) of the Tariff Act of 1930, as amended, provides
that the Department will determine that there is a reasonable basis to
believe or suspect that critical circumstances exist if:
(A) (i) There is a history of dumping in the United States or
elsewhere of the class or kind of merchandise which is the subject of
the investigation, or
(ii) The person by whom, or for whose account, the merchandise was
imported knew or should have known that the exporter was selling the
merchandise which is the subject of the investigation at less than its
fair value, and
(B) There have been massive imports of the class or kind of
merchandise which is the subject of the investigation over a relatively
short period.
Imputed Knowledge of Dumping
To determine whether the persons by whom or for whose account the
merchandise was imported knew, or should have known, that the exporter
was selling the merchandise which is the subject of the investigation
at less-than-fair-value, the Department's practice is to impute
knowledge of dumping when the estimated margins are of such a magnitude
that the importer should have reasonably known that dumping exists with
regard to the subject merchandise. Normally we consider estimated
margins of 25 percent or greater on sales to unrelated parties and
margins of 15 percent or greater on sales through related parties to be
sufficient to impute such knowledge. (See, e.g., Final Determination of
Sales at Less Than Fair Value: Silicon Metal from China (56 FR 18570,
April 23, 1991) and Final Determination of Sales at Less Than Fair
Value: Extruded Rubber Thread from Malaysia (57 FR 38465, August 25,
1992). In this investigation, we found preliminary dumping margins
ranging between 127.52 and 157.16 percent. Accordingly, we find that
the importers either knew, or should have known, that the imports of
honey were being sold at less-than-fair-value.
Because we determine that importers of this merchandise knew, or
should have known, that the merchandise was being sold at less-than-
fair-value, we do not need to address the question of whether there is
a history of dumping of the subject merchandise.
Massive Imports
Under 19 CFR 353.16(f) and 353.16(g), we normally consider the
following to determine whether imports have been massive over a
relatively short period of time: 1) volume and value of the imports; 2)
seasonal trends; and 3) the share of domestic consumption accounted for
by the imports.
When examining volume and value data, the Department normally
compares the export volume for equal periods immediately preceding and
following the filing of the petition (the ``pre-filing period'' and the
``post-filing period''). Under 19 CFR 353.16(f)(2), unless the imports
in the post-filing period have increased by at least 15 percent over
the imports during the pre-filing period, we will not consider the
imports to have been ``massive.''
Because a determination of critical circumstances should be based
on [[Page 29825]] company-specific shipment information (See, e.g.,
Final Determination of Sales at Less-Than-Fair-Value: Certain Hot
Rolled Carbon Steel Flat Products, Certain Cold Rolled Carbon Steel
Flat Products, and Certain Cut-to-Length Carbon Steel Plate from
Belgium, 58 FR 37083 (July 9, 1993)), we requested shipment information
from the four companies for which we calculated preliminary margins
(See, Preliminary Determination of Sales at Less-Than-Fair-Value: Honey
From the People's Republic of China (60 FR 14725, March 20, 1995)).
These four companies, (1) Kunshan Xinlong Foods, Ltd. (Xinlong); (2)
Jiangsu Native Produce Import and Export (Jiangsu); (3) Jiangxi Native
Produce Import and Export (Jiangxi); and (4) Zhejiang Native Produce &
Animal By-product Import and Export (Zhejiang), provided shipment
information for the period from January, 1993 through April 1995.
Pursuant to 19 CFR 353.16(g), in making a critical circumstances
determination, the Department normally considers the period beginning
on the first day of the month of the initiation and ending at least
three months later. The Department considers this period because it is
the period immediately prior to a preliminary determination in which
exporters of the subject merchandise could take advantage of the
knowledge of the dumping investigation to increase exports to the
United States without being subject to antidumping duties (see, e.g.,
Final Determination of Sales at Less Than Fair Value of Certain
Internal-Combustion, Industrial Forklift Trucks from Japan (53 FR
12552, April 15, 1988)). For purposes of this preliminary determination
of critical circumstances, we are using as our comparison period five
months prior to and five months subsequent to the filing of the
petition in this investigation. As the petition was filed in the first
half of October 1994, per Department practice, this month is considered
to be part of the ``post-petition'' period. Thus, the Department
analyzed the company specific shipment information for the pre-petition
period, May 1994 through September 1994, and the post-petition period,
October 1994 through February 1995.
The data we received indicates that Xinlong, Jiangxi, and
Zhejiang's shipment of honey to the U.S. decreased over the relevant
time period and the increase in Jiangsu's shipments exceeded 15
percent.
Other Factors
Our analysis pursuant to 19 CFR 353.16(f)(1)(ii) indicated that
seasonal trends were not a significant factor explaining the increase
in Jiangsu's shipments. We were unable to consider the share of U.S.
consumption represented by imports from Jiangsu, pursuant to
353.16(f)(1)(iii), because we have insufficient information with regard
to Jiangsu's specific market share of domestic consumption.
Jiangsu argues that the increase in its shipments during the post-
petition period was a result of the new Chinese export quota system
which became effective in April 1994. Specifically, Jiangsu claims that
it was forced to ship the remainder of its honey quota by year-end
1994, or it would forfeit the right to export its unused quota. As a
result of these circumstances, Jiangsu's shipments worldwide increased
in November and December 1994. Jiangsu argues that because its
shipments increased in the post-petition period for reasons other than
an intent to import large amounts prior to suspension of liquidation,
the Department should find that these do not constitute ``massive''
imports for purposes of critical circumstances. We believe the evidence
on the record is insufficient to support the legal and factual bases
for this argument, but may reconsider this argument based on
verification findings.
Conclusion
We find that critical circumstances do not exist for Xinglong,
Jiangxi, and Zhejiang because they did not have massive imports over a
relatively short period of time. For Jiangsu, we find that critical
circumstances do exist due to: (1) Imputed knowledge of dumping; and
(2) Massive imports as evidenced by a significant increase in shipments
between the pre- and post-petition comparison period. For the exporters
whose responses were not analyzed,1 we find that critical
circumstances do not exist for the following reason. Due to the large
number of responding companies in this case, the Department selected
only four exporting companies and their respective producers to analyze
in the investigation. The Department does not believe it is appropriate
to penalize respondents whose individual data have not been analyzed
due to the Department's own administrative constraints. Furthermore,
based on an aggregate analysis of the four respondents from which we
requested shipment data, we conclude that the increase in shipment data
for the pre- and post-petition comparison periods is not larger than 15
percent. For all PRC companies which did not respond to the
Department's questionnaire, we have made the determination, as BIA,
that ``massive'' imports exist, and we therefore find that critical
circumstances do exist for all PRC firms not otherwise named in this
notice.
\1\ Heilongjiang Native Produce and Animal By-product Import and
Export
Inner Mongolia Native Produce and Animal By-product
Chang Cheng Industrial Co. Ltd.
Shaanxi Native Produce Import and Export
Kunshan Foreign Trade Co.
China (TUHSU) Super Food Import and Export
Hubei Native Produce Import and Export
Tianjin Native Produce Import and Export
Chanting Native Produce Import and Export
Qinghai Cereals and Oils Import and Export
Shanghai Native Produce Import and Export
Guangxi Cereals, Oils and Foodstuffs Import and Export
Corporation
Sichuan Native Produce Import and Export
China (TUHSU) Flavors and Fragrances Import and Export
Shandong Cereals and Oils Import and Export
Ningbo Native Produce Import and Export
Anhui Cereals & Oils Import and Export
Jiangsu Sweet Foods, Ltd.
Hebei Native Produce Import and Export
Anhui Medicines and Health Produce Import and Export
Xian Native Produce and Animal By-product Import and Export
Liaoning Native Produce Import and Export
Liaoning Native Produce Import and Export
Anhui Native Produce Import and Export
Henan Native Produce Import and Export
---------------------------------------------------------------------------
Final Critical Circumstances Determination
We will make a final determination and address any comments
concerning critical circumstances when we make our final determination
in this investigation by August 2, 1995.
Suspension of Liquidation
In accordance with section 733(e)(2) of the Act, we are directing
the Customs Service to suspend liquidation of all entries of honey from
Jiangsu Native Produce Import and Export of the PRC and all other PRC
companies not specifically named above that are entered, or withdrawn
from warehouse, for consumption on or after December 20, 1994 (i.e., 90
days prior to the date of publication of our preliminary determination
in the Federal Register). The Customs Service shall require a cash
deposit or posting of a bond equal to the estimated preliminary dumping
margins, as shown below. This suspension of liquidation will remain in
effect until further notice.
------------------------------------------------------------------------
Average
Producer/manufacturer/exporter margin
percentage
------------------------------------------------------------------------
Jiangsu Native Produce Import and Export.................... 127.52
Kunshan Xinlong Food, Ltd................................... *146.37
[[Page 29826]]
Jiangxi Native Produce Import and Export.................... *131.86
Zhejiang Native Produce & Animal By-product Import and
Export..................................................... *131.86
All PRC..................................................... 157.16
------------------------------------------------------------------------
The asterisk indicates the rate for continuing the suspension of
liquidation for those exporters found preliminarily to have negative
critical circumstances.
ITC Notification
In accordance with section 733(f) of the Act, we have notified the
ITC of our determination.
Public Comment
Since this preliminary critical circumstances determination is
being made after the due date for public comment on our preliminary
determination of sales at less than fair value in this case, we will
accept written comments on this preliminary determination of critical
circumstances until the date in which case briefs are to be filed.
This determination is published pursuant to section 733(f) of the
Act.
Dated: May 30, 1995.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 95-13822 Filed 6-5-95; 8:45 am]
BILLING CODE 3510-DS-P