80 FR 37222 - Fresh Garlic From the People's Republic of China: Preliminary Results of the Changed Circumstances Review of Jining Yongjia Trade Co., Ltd. and Jinxiang County Shanfu Frozen Co., Ltd.

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 80, Issue 125 (June 30, 2015)

Page Range37222-37223
FR Document2015-16082

On December 16, 2014, the Department of Commerce (Department) initiated a changed circumstance review (CCR) of the antidumping duty (AD) order on fresh garlic from the People's Republic of China (PRC) in response to a request from Jining Yongjia Trade Co., Ltd. (Yongjia), an exporter of fresh and peeled garlic from the People's Republic of China (PRC), on behalf of its garlic supplier, Jinxiang County Shanfu Frozen Co., Ltd. (Shanfu II).\1\ Pursuant to section 751(b) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.216, the Department preliminarily determines that Shanfu II is not the successor-in- interest to the entity of the same name (Shanfu I). Interested parties are invited to comment on these preliminary results. ---------------------------------------------------------------------------

Federal Register, Volume 80 Issue 125 (Tuesday, June 30, 2015)
[Federal Register Volume 80, Number 125 (Tuesday, June 30, 2015)]
[Notices]
[Pages 37222-37223]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-16082]



[[Page 37222]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-831]


Fresh Garlic From the People's Republic of China: Preliminary 
Results of the 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: On December 16, 2014, the Department of Commerce (Department) 
initiated a changed circumstance review (CCR) of the antidumping duty 
(AD) order on fresh garlic from the People's Republic of China (PRC) in 
response to a request from Jining Yongjia Trade Co., Ltd. (Yongjia), an 
exporter of fresh and peeled garlic from the People's Republic of China 
(PRC), on behalf of its garlic supplier, Jinxiang County Shanfu Frozen 
Co., Ltd. (Shanfu II).\1\ Pursuant to section 751(b) of the Tariff Act 
of 1930, as amended (the Act), and 19 CFR 351.216, the Department 
preliminarily determines that Shanfu II is not the successor-in-
interest to the entity of the same name (Shanfu I). Interested parties 
are invited to comment on these preliminary results.
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    \1\ See 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., (December 22, 
2014) (Yongjia CCR Initiation Notice).

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DATES: Effective date June 30, 2015.

FOR FURTHER INFORMATION CONTACT: Hilary E. Sadler, Esq., AD/CVD 
Operations, Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4340.

SUPPLEMENTARY INFORMATION:

Background

    On November 16, 1994, the Department published the AD order on 
fresh garlic from the PRC in the Federal Register.\2\ On October 8, 
2014, Yongjia requested that the Department conduct a CCR pursuant to 
section 751(b)(1) of the Act and 19 CFR 351.216(b) to determine that 
Shanfu II, its garlic supplier, is the successor-in-interest to Shanfu 
I for purposes of the Order.\3\ On November 4, 2014, petitioners \4\ 
submitted comments opposing initiation of this review,\5\ contending 
that Shanfu II is not the successor-in-interest to Shanfu I based on 
Shanfu I's dissolution in June 2012.\6\
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    \2\ See Antidumping Duty Order: Fresh Garlic from the People's 
Republic of China, 59 FR 59209 (November 16, 1994) (Order).
    \3\ See Letter from Yongjia, ``Request for Changed Circumstances 
Review pursuant to 19 CFR 251.216 on behalf of Jining Yongjia Trade 
Co., Ltd.,'' (October 8, 2014) (Yongjia CCR Request).
    \4\ The petitioners are the Fresh Garlic Producers Association 
and its individual members: Christopher Ranch L.L.C., The Garlic 
Company, Valley Garlic, Inc., and Vessey and Company, Inc. Effective 
April 8, 2015, the lead petitioner is The Garlic Company.
    \5\ See Letter from Petitioners, ``Request for Changed 
Circumstances Review Under the Antidumping Order on Fresh Garlic 
from the People's Republic of China--Petitioners' Opposition to 
Initiation of Review,'' (November 4, 2014).
    \6\ See Letter from the Petitioners, ``Changed Circumstances 
Review Involving Status of Jinxiang County Shanfu Frozen Co., Ltd. 
Under Antidumping Order on Fresh Garlic from the People's Republic 
of China--Petitioners' Comments on Initial Re: Questionnaire 
Response,'' (March 23, 2015) (Petitioners' Questionnaire Rebuttal).
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    The Department initiated this CCR regarding Yongjia and Shanfu II 
on December 16, 2014.\7\ On February 6, 2015, the Department issued its 
initial CCR questionnaire to Yongjia.\8\ Yongjia timely responded to 
the Department's questionnaire.\9\ On March 23, 2015, the petitioners 
rebutted Yongjia's questionnaire response.\10\
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    \7\ See Yongjia CCR Initiation Notice.
    \8\ See Letter to Yongjia from Mark Hoadley, Program Manager, 
AD/CVD Operations, Office VII Enforcement and Compliance, ``Changed 
Circumstances Review of Fresh Garlic from the People's Republic of 
China Initial Questionnaire of Jining Yongjia Trade Co., Ltd. and 
Jinxiang County Shanfu Frozen Co., Ltd.,'' (February 6, 2015) 
(Initial Questionnaire).
    \9\ See Letter from Yongjia, ``Response to Initial Questionnaire 
in Changed Circumstances Review filed on behalf of Jining Yongjia 
Trade Co., Ltd. and Jinxiang County Shanfu Frozen Co., Ltd.,'' 
(February 27, 2015) (Yongjia Questionnaire Response).
    \10\ See Petitioners' Questionnaire Rebuttal.
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Scope of the Order

    The merchandise covered by this order is all grades of garlic, 
whether whole or separated into constituent cloves. The subject 
merchandise is currently classifiable under the Harmonized Tariff 
Schedule of the United States (HTSUS) subheadings: 0703.20.0000, 
0703.20.0010, 0703.20.0020, 0703.20.0090, 0710.80.7060, 0710.80.9750, 
0711.90.6000, 0711.90.6500, 2005.90.9500, 2005.90.9700, 0703.20.0005, 
2005.99.9700 and 0703.20.0015. Although the HTSUS subheadings are 
provided for convenience and customs purposes, the written product 
description is dispositive.
    A complete description of the scope of the order is contained in 
the Preliminary Decision Memorandum.\11\ The Preliminary 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 ACCESS is available to 
all parties in the Central Records Unit, room 7046 of the main 
Department of Commerce building. In addition, a complete version of the 
Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed Preliminary Decision 
Memorandum and the electronic versions of the Preliminary Decision 
Memorandum are identical in content.
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    \11\ See ``Decision Memorandum for the Preliminary Results of 
the Antidumping Duty Changed Circumstances Review of Fresh Garlic 
from the People's Republic of China: Jining Yongjia Trade Co., Ltd. 
and Jinxiang County Shanfu Frozen Co., Ltd.,'' dated concurrently 
and hereby adopted in this notice.
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Methodology

    In accordance with section 751(b)(1) of the Act, we are conducting 
this changed circumstances review based upon the information contained 
in Yongjia's submissions.\12\ In making 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.\13\ 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 of the successor are not materially dissimilar to that of 
its predecessor.\14\ 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.\15\ For a full description of the methodology 
underlying our conclusions, see the Preliminary Decision Memorandum.
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    \12\ See Yongjia CCR Request and Yongjia CCR Questionnaire 
Response.
    \13\ 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).
    \14\ See, e.g., Notice of Initiation of Antidumping Duty Changed 
Circumstances Review: Certain Forged Stainless Steel Flanges from 
India, 71 FR 327, 327 (January 4, 2006).
    \15\ 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).

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[[Page 37223]]

Preliminary Results of the Changed Circumstances Review

    Based on the evidence reviewed, we preliminarily determine that 
Shanfu II is not the successor-in-interest to Shanfu I. Specifically, 
we find that material changes occurred after Shanfu I dissolved and 
Shanfu II was registered. These were changes in management, business 
scope, production facilities, supplier relationships, and ownership/
legal structure with respect to the production and sale of the subject 
merchandise.\16\ Thus, we preliminarily determine that Shanfu II does 
not operate as the same business entity as Shanfu I with respect to the 
subject merchandise. A list of topics discussed in the Preliminary 
Decision Memorandum appears in the Appendix to this notice.
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    \16\ See Preliminary Decision Memorandum at 4.
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    If the Department upholds these preliminary results in the final 
results, Yongjia and Shanfu will be assigned the cash deposit rate 
currently assigned to the PRC-wide entity with respect to the subject 
merchandise (i.e., the $4.71 per kilogram cash deposit rate currently 
assigned to the PRC-wide entity).\17\ If these preliminary results are 
adopted in the final results of this changed circumstances review, we 
will instruct U.S. Customs and Border Protection to suspend liquidation 
of entries of fresh garlic made by Shanfu II and exported by Yongjia, 
effective on the publication date of the final results, at the cash 
deposit rate assigned to the PRC-wide entity.
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    \17\ See 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).
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Public Comment

    Interested parties may submit written comments by no later than 30 
days after the date of publication of these preliminary results of 
review in the Federal Register.\18\ Rebuttals, limited to issues raised 
in the written comments, may be filed by no later than five days after 
the written comments are filed.\19\ Parties that submit written 
comments or rebuttals are encouraged to submit with each argument: (1) 
A statement of the issue; (2) a brief summary of the argument; and (3) 
a table of authorities.\20\ All briefs are to be filed electronically 
using ACCESS.\21\ An electronically filed document must be received 
successfully in its entirety by ACCESS by 5:00 p.m. Eastern Time on the 
day on which it is due.\22\
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    \18\ See 19 CFR 351.309(c)(1)(ii).
    \19\ See 19 CFR 351.309(d)(1).
    \20\ See 19 CFR 351.309(c)(2) & (d)(2).
    \21\ See 19 CFR 351.303(b) and (f).
    \22\ See 19 CFR 351.303(b)
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    Any interested party may submit a request for a hearing to the 
Assistant Secretary of Enforcement and Compliance using ACCESS within 
30 days of publication of this notice in the Federal Register.\23\ 
Hearing requests should contain the following information: (1) The 
party's name, address, and telephone number; (2) the number of 
participants; and (3) a list of the issues to be discussed.\24\ Oral 
presentations will be limited to issues raised in the briefs. If a 
request for a hearing is made, parties will be notified of the time and 
date for the hearing to be held at the U.S. Department of Commerce, 
1401 Constitution Avenue NW., Washington, DC 20230.\25\
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    \23\ See 19 CFR 351.310(c).
    \24\ Id.
    \25\ See 19 CFR 351.310(d).
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Final Results of the Review

    In accordance with 19 CFR 351.216(e), the Department intends to 
issue the final results of this changed circumstances review not later 
than 270 days after the date on which the review is initiated.

Notification to Parties

    The Department issues and publishes these results in accordance 
with sections 751(b)(1) and 777(i) of the Act and 19 CFR 351.216 and 
351.221.

    Dated: June 23, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Preliminary Results of Changed Circumstances Review Successor-
in-Interest
    1. Changes in Ownership And Management
    2. Production Facilities and Equipment
    3. Supplier Relationships
    4. Customer Base
    5. Other Material Considerations
    a. Dissolution
    b. Change in Corporate Form
V. Summary of Preliminary Findings
VI. Recommendation

[FR Doc. 2015-16082 Filed 6-29-15; 8:45 am]
 BILLING CODE 3510-DS-P


Current View
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesEffective date June 30, 2015.
ContactHilary E. Sadler, Esq., AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482- 4340.
FR Citation80 FR 37222 

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