[Federal Register Volume 83, Number 117 (Monday, June 18, 2018)]
[Notices]
[Pages 28193-28195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12991]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-469-817]
Ripe Olives From Spain: Final Affirmative Determination of Sales
at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that ripe
olives from Spain are being, or are likely to be, sold in the United
States at less than fair value (LTFV). The period of investigation
(POI) is April 1, 2016, through March 31, 2017.
DATES: Applicable June 18, 2018.
FOR FURTHER INFORMATION CONTACT: Catherine Cartsos, Bryan Hansen or
Peter Zukowski, AD/CVD Operations, Office I, Enforcement and
Compliance, International Trade Administration, U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone:
(202) 482-1757, (202) 482-3683 or (202) 482-0189, respectively.
SUPPLEMENTARY INFORMATION:
Background
On January 26, 2018, Commerce published the Preliminary
Determination of this LTFV investigation in which Commerce found that
ripe olives from Spain were sold at LTFV.\1\ For a summary of the
events that have occurred since Commerce published the Preliminary
Determination, as well as a full discussion of the issues raised by
parties for this final determination, see the Issues and Decision
Memorandum.\2\
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\1\ See Ripe Olives from Spain: Preliminary Affirmative
Determination of Sales at Less Than Fair Value, Postponement of
Final Determination, and Extension of Provisional Measures, 83 FR
3677 (January 26, 2018) and accompanying Preliminary Decision
Memorandum (Preliminary Decision Memorandum) (collectively,
Preliminary Determination).
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Less than Fair Value
Investigation of Ripe Olives from Spain,'' dated concurrently with,
and hereby adopted by, this notice (Issues and Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is ripe olives from
Spain. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\3\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope). No interested party
commented on the scope of the investigation as it appeared in the
Initiation Notice during the scope comment period.\4\ In the context of
supplemental questionnaire responses, two of the three mandatory
respondents in the LTFV investigation reported sales of cocktail mixes
but stated that they believe cocktail mixes are not within the scope of
the investigation. In response, the petitioner \5\ commented that the
respondents cannot unilaterally determine whether cocktail mixes are
outside the scope. For the Preliminary Determination, we did not modify
the scope language as it appeared in the Initiation Notice. We included
all sales of cocktail mixes and their associated costs in our margin
calculations, and solicited further information from parties concerning
cocktail mixes for purposes of the final determination. In the April 3,
2018, post-preliminary analysis we issued with respect to the scope of
the investigation, we found that: (i) Ripe olives contained in cocktail
mixes are in the scope, but that the remaining ingredients are not in
the scope, and (ii) we clarified the scope by adding language
concerning ripe olives contained in cocktail mixes.\6\ As a result of
our analysis of comments received in response to this post-preliminary
analysis, we have modified the scope of this investigation for this
final determination. For a summary of the product coverage comments and
rebuttal responses submitted to the record for this final
determination, and accompanying discussion and analysis of all comments
timely received, see the Issues and Decision Memorandum.\7\
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\3\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\4\ See Ripe Olives from Spain: Initiation of Less-Than-Fair-
Value Investigation, 82 FR 33054 (July 19, 2017) (Initiation
Notice).
\5\ The Coalition for Fair Trade on Ripe Olives.
\6\ See Memorandum, ``Ripe Olives from Spain: Post-Preliminary
Scope Clarification Decision Memorandum,'' dated April 3, 2018.
\7\ See Issues and Decision Memorandum at Comment 1.
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Verification
As provided in section 782(i) of the Act, in February and March
2018, we conducted verification of the information reported by the
mandatory respondents Aceitunas Guadalquivir S.L. (AG), Agro Sevilla
Aceitunas S.COOP Andalusia (Agro Sevilla),\8\ and Angel Camacho
Alimentacion S.L. (Camacho) for use in our final determination. We used
standard verification procedures, including an examination of relevant
accounting and production records and original source documents
provided by the respondents.
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\8\ In the Preliminary Determination the company name was
spelled incorrectly as Agro Sevilla Aceitunas S.COOP Anndalusia. The
correct spelling of the company name is Agro Sevilla Aceitunas
S.COOP Andalusia.
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Analysis of Comments Received
All issues raised in the case and rebuttal briefs that were
submitted by parties in this investigation are addressed in the Issues
and Decision Memorandum. A list of these issues is attached to this
notice as Appendix II. 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 https://access.trade.gov, and to all parties in the Central Records Unit, room
B8024 of the main Department of Commerce building. In addition, a
complete version of the Issues and Decision Memorandum can be accessed
directly at http://enforcement.trade.gov/frn/.
Changes Since the Preliminary Determination and Use of Partial Adverse
Facts Available
Based on our analysis of the comments received and our findings at
verification, we made certain changes to the margin calculations for
AG, Agro Sevilla and Camacho.\9\ In addition, we revised the margin
calculations for Camacho to reflect the application of partial facts
available with an adverse inference pursuant to section 776(b) of
[[Page 28194]]
the Act. For a discussion of these changes, see the Issues and Decision
Memorandum. We have also revised the estimated weighted-average dumping
margin for all-other producers or exporters (the all-others rate).
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\9\ See the ``Discussion of the Issues'' section of the Issues
and Decision Memorandum and the company-specific analysis memoranda
dated concurrently with, and hereby incorporated by, this notice.
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All-Others Rate
Section 735(c)(5)(A) of the Act provides that in the final
determination Commerce shall determine an estimated weighted-average
dumping margin for all exporters or producers not individually
examined. This rate shall be an amount equal to the weighted average of
the estimated weighted-average dumping margins established for
exporters or producers individually examined, excluding any rates that
are zero, de minimis or determined entirely under section 776 of the
Act. In this investigation, we calculated estimated weighted-average
dumping margins for the individually examined respondents that are not
zero, de minimis, or based entirely on facts otherwise available.
Because there are three estimated weighted-average dumping margins and
doing so would not reveal business proprietary information, we
calculated the all-others rate using a weighted-average of the
estimated weighted-average dumping margins calculated for the examined
respondents using each company's business proprietary data for the
merchandise under consideration.\10\
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\10\ For a complete analysis of the data, see Memorandum,
``Less-Than-Fair-Value Investigation of Ripe Olives from Spain:
Calculation of the All-Others Rate in the Final Determination,''
dated concurrently with this notice.
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Final Determination
We determine that the following estimated weighted-average dumping
margins exist:
------------------------------------------------------------------------
Estimated
weighted- Adjusted for
average export
Exporter or producer dumping subsidies
margin (percent)
(percent) \11\
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Aceitunas Guadalquivir S.L. \12\.............. 17.46 \13\ 17.45
Agro Sevilla Aceitunas S.COOP Andalusia \14\.. 25.50 \15\ 25.39
Angel Camacho Alimentacion.................... 16.88 \16\ 16.83
S.L...........................................
All-Others.................................... 20.04 19.98
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Disclosure
We intend to disclose to interested parties the calculations and
analysis performed in this final determination within five days of any
public announcement or, if there is no public announcement, within five
days of the date of publication of this notice in accordance with 19
CFR 351.224(b).
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\11\ The cash deposit rate is equal to the calculated estimated
weighted-average dumping margin adjusted for the appropriate export
subsidy offset(s). See final countervailing duty (CVD)
determination, ``Ripe Olives from Spain: Final Affirmative
Countervailing Duty Determination,'' signed concurrently with this
notice.
\12\ In the companion CVD investigation, this company's name is
spelled as Aceitunas Guadalquivir S.L.U.
\13\ See Memorandum, ``Final Determination Calculations for
Aceitunas Guadalquivir, S.L.U.,'' dated concurrently with this
notice.
\14\ In the companion CVD investigation, this company's name is
spelled as Agro Sevilla Aceitunas S.Coop.And.
\15\ See Memorandum, ``Final Determination Calculations for Agro
Sevilla Aceitunas S.Coop.And.,'' dated concurrently with this
notice.
\16\ See Memorandum, ``Final Determination Calculations for
Angel Camacho Alimentacion S.L.,'' dated concurrently with this
notice.
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Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, Commerce will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all appropriate entries of ripe olives from
Spain as described in Appendix I of this notice, which were entered, or
withdrawn from warehouse, for consumption on or after January 26, 2018,
the date of publication of the Preliminary Determination of this
investigation in the Federal Register.
Pursuant to section 735(c)(1)(B) of the Act and 19 CFR 351.210(d),
Commerce will instruct CBP to require a cash deposit as follows: (1)
The cash deposit rate for the respondents listed above under Final
Determination will be equal to their respondent-specific estimated
weighted-average dumping margin; (2) if the exporter is not a
respondent identified above, but the producer is, then the cash deposit
rate will be equal to the respondent-specific estimated weighted-
average dumping margin established for that producer of the subject
merchandise; (3) for all other producers or exporters of ripe olives to
the United States, the cash deposit rate will be equal to the all-
others rate.
Further, Commerce will instruct CBP to require a cash deposit equal
to the estimated amount by which the normal value (NV) exceeds the U.S.
price as shown above, adjusted where appropriate for export subsidies
found in the final determination of the companion CVD investigation.
Consistent with Commerce's practice, where the product under
investigation is also subject to a concurrent CVD investigation,
Commerce instructs CBP to require a cash deposit equal to the estimated
weighted-average dumping margin, less the amount of the CVD determined
to constitute an export subsidy.\17\ Therefore, in the event that a CVD
order is issued and suspension of liquidation is resumed in the
companion CVD investigation on ripe olives from Spain,\18\ Commerce
will instruct CBP to require cash deposits adjusted by the amount of
export subsidies, as appropriate. These adjustments are reflected in
the final column of the rate chart, above. Until such suspension of
liquidation is resumed in the companion CVD investigation, and so long
as suspension of liquidation continues under this antidumping duty
investigation, the cash deposit rates for this antidumping duty
investigation will be the rates identified in the estimated weighted-
average dumping margin column in the rate chart, above.
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\17\ See, e.g., Welded Line Pipe from the Republic of Turkey:
Final Determination of Sales at Less Than Fair Value, 80 FR 61362,
61364 (October 13, 2015); Notice of Final Determination of Sales at
Less Than Fair Value and Negative Critical Circumstances
Determination: Bottom Mount Combination Refrigerator-Freezers From
the Republic of Korea, 77 FR 17413, 17417 (March 26, 2012).
\18\ The provisional measures for the CVD investigation of ripe
olives from Spain have currently expired (i.e., exceeded the maximum
four-month period), and, therefore, no adjustment for countervailed
export subsidies is warranted.
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These suspension of liquidation instructions will remain in effect
until further notice.
International Trade Commission Notification
In accordance with section 735(d) of the Act, Commerce will notify
the International Trade Commission (ITC) of its final determination.
Because the final determination in this proceeding is affirmative, in
accordance with section 735(b)(2)(B) of the Act, the ITC will make its
final determination as to whether the domestic industry in the United
States is materially injured, or threatened with material injury, by
reason of imports of ripe olives from Spain no later than 45 days after
Commerce's final determination. If the ITC determines that material
injury or threat of material injury does not exist, the proceeding will
be terminated and all securities posted will be refunded or canceled.
If the ITC determines that such injury does exist, Commerce will issue
an antidumping duty order directing CBP to assess, upon further
instruction by Commerce, antidumping duties on appropriate imports of
the subject merchandise entered, or withdrawn from warehouse, for
[[Page 28195]]
consumption on or after the effective date of the suspension of
liquidation.
Notification to Interested Parties
This notice serves as a reminder to parties subject to an
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 the return or 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 violation
subject to sanction.
This determination and this notice are issued and published
pursuant to sections 735(d) and 777(i)(1) of the Act.
Dated: June 11, 2018.
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.
Appendix I--Scope of the Investigation
The products covered by this investigation are certain processed
olives, usually referred to as ``ripe olives.'' The subject
merchandise includes all colors of olives; all shapes and sizes of
olives, whether pitted or not pitted, and whether whole, sliced,
chopped, minced, wedged, broken, or otherwise reduced in size; all
types of packaging, whether for consumer (retail) or institutional
(food service) sale, and whether canned or packaged in glass, metal,
plastic, multilayered airtight containers (including pouches), or
otherwise; and all manners of preparation and preservation, whether
low acid or acidified, stuffed or not stuffed, with or without
flavoring and/or saline solution, and including in ambient,
refrigerated, or frozen conditions.
Included are all ripe olives grown, processed in whole or in
part, or packaged in Spain. Subject merchandise includes ripe olives
that have been further processed in Spain or a third country,
including but not limited to curing, fermenting, rinsing, oxidizing,
pitting, slicing, chopping, segmenting, wedging, stuffing,
packaging, or heat treating, or any other processing that would not
otherwise remove the merchandise from the scope of the investigation
if performed in Spain.
Subject merchandise includes ripe olives that otherwise meet the
definition above that are packaged together with non-subject
products, where the smallest individual packaging unit (e.g., can,
pouch, jar, etc.) of any such product--regardless of whether the
smallest unit of packaging is included in a larger packaging unit
(e.g., display case, etc.)--contains a majority (i.e., more than 50
percent) of ripe olives by net drained weight. The scope does not
include the non-subject components of such product.
Excluded from the scope are: (1) Specialty olives \19\
(including ``Spanish-style,'' ``Sicilian-style,'' and other similar
olives) that have been processed by fermentation only, or by being
cured in an alkaline solution for not longer than 12 hours and
subsequently fermented; and (2) provisionally prepared olives
unsuitable for immediate consumption (currently classifiable in
subheading 0711.20 of the Harmonized Tariff Schedule of the United
States (HTSUS)).
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\19\ Some of the major types of specialty olives and their
curing methods are:
``Spanish-style'' green olives: Spanish-style green
olives have a mildly salty, slightly bitter taste, and are usually
pitted and stuffed. This style of olive is primarily produced in
Spain and can be made from various olive varieties. Most are stuffed
with pimento; other popular stuffings are jalapeno, garlic, and
cheese. The raw olives that are used to produce Spanish-style green
olives are picked while they are unripe, after which they are
submerged in an alkaline solution for typically less than a day to
partially remove their bitterness, rinsed, and fermented in a strong
salt brine, giving them their characteristic flavor.
``Sicilian-style'' green olives: Sicilian-style olives
are large, firm green olives with a natural bitter and savory
flavor. This style of olive is produced in small quantities in the
United States using a Sevillano variety of olive and harvested green
with a firm texture. Sicilian-style olives are processed using a
brine-cured method, and undergo a full fermentation in a salt and
lactic acid brine for 4 to 9 months. These olives may be sold whole
unpitted, pitted, or stuffed.
``Kalamata'' olives: Kalamata olives are slightly
curved in shape, tender in texture, and purple in color, and have a
rich natural tangy and savory flavor. This style of olive is
produced in Greece using a Kalamata variety olive. The olives are
harvested after they are fully ripened on the tree, and typically
use a brine-cured fermentation method over 4 to 9 months in a salt
brine.
Other specialty olives in a full range of colors,
sizes, and origins, typically fermented in a salt brine for 3 months
or more.
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The merchandise subject to this investigation is currently
classifiable under subheadings 2005.70.0230, 2005.70.0260,
2005.70.0430, 2005.70.0460, 2005.70.5030, 2005.70.5060,
2005.70.6020, 2005.70.6030, 2005.70.6050, 2005.70.6060,
2005.70.6070, 2005.70.7000, 2005.70.7510, 2005.70.7515,
2005.70.7520, and 2005.70.7525 HTSUS. Subject merchandise may also
be imported under subheadings 2005.70.0600, 2005.70.0800,
2005.70.1200, 2005.70.1600, 2005.70.1800, 2005.70.2300,
2005.70.2510, 2005.70.2520, 2005.70.2530, 2005.70.2540,
2005.70.2550, 2005.70.2560, 2005.70.9100, 2005.70.9300, and
2005.70.9700. Although HTSUS subheadings are provided for
convenience and US Customs purposes, they do not define the scope of
the investigation; rather, the written description of the subject
merchandise is dispositive.
Appendix II--List of Topics Discussed in the Issues and Decision
Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Discussion of the Issues
Comment 1: Clarify Scope to Include Ripe Olives Contained in
Cocktail Mixes
Comment 2: Particular Market Situation Allegation
Comment 3: Whether Commerce Should Apply its Differential
Pricing Methodology
Comment 4: Agro Sevilla's and Camacho's Constructed Export Price
Indirect Selling Expenses
Comment 5: Camacho Corrections Presented at Verification
Comment 6: Camacho Ministerial Error Regarding Mixed Currencies
Comment 7: Camacho Cost Verification Findings
Comment 8: Camacho Purchases of Olives from Affiliated Parties
Comment 9: Camacho's Plantilla Price Adjustments
Comment 10: Camacho's CEP Offset
Comment 11: Camacho's Home Market Credit Expense
Comment 12: Camacho's Revised Control Number
Comment 13: Camacho's U.S. Sales of Merchandise Manufactured by
an Unaffiliated Party
Comment 14: Camacho's Margin Should Be Based on Adverse Facts
Available
Comment 15: AG Minor Corrections Presented During Sales and Cost
Verifications
Comment 16: AG Home Market Commission Expenses
Comment 17: AG Freight Credit
Comment 18: AG Whether Local Taxes should be included in the
General and Administrative (G&A) Expenses
Comment 19: AG Unexplained Cost Reconciliation Difference
Comment 20: Whether Commerce Should Adjust AG's Reported Cost of
Raw Materials to Reflect Consumption Costs versus POI Purchases
Comment 21: Classification of Machinery Depreciation Expense
Comment 22: Agro Sevilla Corrections Presented During Sales
Verifications
Comment 23: Agro Sevilla's Pick-Up Adjustment Expense
Comment 24: Agro Sevilla's Unreported Pallet Revenues
Comment 25: Agro Sevilla's Total Cost of Manufacturing
Comment 26: Agro Sevilla's Financial Expenses
Comment 27: Agro Sevilla's Affiliated Purchases
VI. Recommendation
[FR Doc. 2018-12991 Filed 6-15-18; 8:45 am]
BILLING CODE 3510-DS-P