70 FR 51751, August 31, 2005

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-848]

Notice of Rescission of Antidumping Duty New Shipper Review: 
Freshwater Crawfish Tail Meat from the People's Republic of China

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: On November 3, 2004, in response to requests from Dafeng 
Shunli Import & Export Co., Ltd., and Shanghai Blessing Trade Co. Ltd., 
the Department of Commerce (``the Department'') initiated new shipper 
reviews of the antidumping duty order on freshwater crawfish tail meat 
from the People's Republic of China. The period of review is September 
1, 2003, through August 31, 2004. For the reasons discussed below, we 
are rescinding these new shipper reviews.

[[Page 51752]]

EFFECTIVE DATE: August 31, 2005.

FOR FURTHER INFORMATION CONTACT: Scot Fullerton or Bobby Wong, AD/CVD 
Operations, Office 9, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
1386 and (202) 482-0409, respectively.

SUPPLEMENTARY INFORMATION:

Scope of the Order

    The product covered by this antidumping duty order is freshwater 
crawfish tail meat, in all its forms (whether washed or with fat on, 
whether purged or unpurged), grades, and sizes; whether frozen, fresh, 
or chilled; and regardless of how it is packed, preserved, or prepared. 
Excluded from the scope of the order are live crawfish and other whole 
crawfish, whether boiled, frozen, fresh, or chilled. Also excluded are 
saltwater crawfish of any type, and parts thereof. Freshwater crawfish 
tail meat is currently classifiable in the Harmonized Tariff Schedule 
of the United States (HTS) under subheadings 1605.40.10.10 and 
1605.40.10.90, which are the new HTS subheadings for prepared 
foodstuffs, indicating peeled crawfish tail meat and other, as 
introduced by the U.S. Customs Service in 2000, and HTS subheadings 
0306.19.00.10 and 0306.29.00, which are reserved for fish and 
crustaceans in general. The HTS subheadings are provided for 
convenience and customs purposes only. The written description of the 
scope of this order is dispositive.

Background

    On September 15, 2004, and September 30, 2004, the Department 
received requests for new shipper reviews from Shanghai Blessing Trade 
Co., Ltd. (``Shanghai Blessing'') and Dafeng Shunli Import & Export 
Co., Ltd. (``Dafeng Shunli'') respectively. On November 3, 2004, the 
Department initiated both new shipper reviews for the period of review 
(``POR'') September 1, 2003, through August 31, 2004. See Freshwater 
Crawfish Tail Meat from the People's Republic of China: Initiation of 
Antidumping New Shipper Review, 69 FR 64028 (November 3, 2004). On 
November 9, 2004, we issued a questionnaire to Shanghai Blessing and 
Dafeng Shunli. In addition to Sections A, C, and D, the Department's 
questionnaire to both respondents included questions regarding each 
respondent's importer. On December 27, 2004, and January 5, 2005, we 
received Shanghai Blessing and Dafeng Shunli's respective responses to 
Sections A, C, and D of the Department's questionnaire, including a 
response regarding each respondent's importer.
    We issued and received supplemental questionnaires from Shanghai 
Blessing and Dafeng Shunli in February, March, and April 2005. On March 
23, 2005, the Department extended the time limit for the completion of 
the preliminary results of review by 66 days from the original April 
25, 2005 deadline, in accordance with section 751(a)(2)(B)(iv) of the 
Tariff Act of 1930, as amended (``the Act''), and section 351.214(i)(2) 
of the Department's regulations. See Notice of Extension of the 
Preliminary Results of New Shipper Antidumping Duty Reviews: Crawfish 
Tail Meat from the People's Republic of China, 70 FR 14648 (March 23, 
2005). On June 23, 2005, the Department further extended the time limit 
for the completion of the preliminary results of review until August 
23, 2005. See Notice of Extension of the Preliminary Results of New 
Shipper Antidumping Duty Reviews: Crawfish Tail Meat from the People's 
Republic of China, 70 FR 37327 (June 29, 2005).
    On June 8, 2005, and July 19, 2005, respectively, the Department 
completed its preliminary bona fides analysis for both Dafeng Shunli 
and Shanghai Blessing's single sales to the United States and stated 
the Department's preliminary intention to rescind the new shipper 
reviews of both companies. See Memorandum from James C. Doyle to 
Barbara E. Tillman: The Bona Fides Analysis for Dafeng Shunli Import & 
Export Co., Ltd.'s Sale in the New Shipper Review of Freshwater 
Crawfish Tail Meat from the People's Republic of China, (``DF Bona 
Fides Analysis Memo''), and Memorandum from James C. Doyle to Barbara 
E. Tillman: The Bona Fides Analysis for Shanghai Blessing Trade Co., 
Ltd.'s Sale in the New Shipper Review of Freshwater Crawfish Tail Meat 
from the People's Republic of China, (``SB Bona Fides Analysis Memo''). 
The Department allowed interested parties an opportunity to provide 
comments on the Department's bona fides analysis memos, as well as the 
new factual information placed on the record of review as attachments 
to the memo. Dafeng Shunli provided comments on the Department's DF 
Bona Fides Analysis Memo on June 24, 2005, and the Louisiana Crawfish 
Processors Alliance provided rebuttal comments on June 30, 2005. 
Shanghai Blessing provided comments on the Department's SB Bona Fides 
Analysis Memo on August 2, 2005, and the Louisiana Crawfish Processors 
Alliance provided rebuttal comments on August 5, 2005.

Rescission of Review

    Concurrent with this notice, we are issuing two memoranda detailing 
our analysis of the bona fides of both Shanghai Blessing and Dafeng 
Shunli's U.S. sales and our decision to rescind the reviews for both 
companies based on the totality of the circumstances. See Memorandum 
from James C. Doyle, Director, Office 9, to Barbara E. Tillman, Acting 
DAS for Operations: Bona Fides Analysis and Rescission of New Shipper 
Review of Freshwater Crawfish Tail Meat from the People's Republic of 
China for Dafeng Shunli Import & Export Co., Ltd., dated August 23, 
2005 (``DF Rescission Memo'') and Memorandum from James C. Doyle, 
Director, Office 9, to Barbara E. Tillman, Acting DAS for Operations: 
Bona Fides Analysis and Rescission of New Shipper Review of Freshwater 
Crawfish Tail Meat from the People's Republic of China for Shanghai 
Blessing Co., Ltd., dated August 23, 2005 (``SB Rescission Memo'').
    In evaluating whether or not a single sale in a new shipper review 
is commercially reasonable, and therefore bona fide, the Department has 
considered, inter alia, such factors as (1) the timing of the sale; (2) 
the price and quantity; (3) the expenses arising from the transaction; 
(4) whether the goods were resold at a profit; and (5) whether the 
transaction was at an arms-length basis. See Tianjin Tiancheng 
Pharmaceutical Co., Ltd. v. U.S., Slip Op. 05-29, at 9 (CIT Mar. 9, 
2005) (``TTPC''), citing Am. Silicon Techs. v. U.S., 110 F. Supp. 2d 
992, 995 (CIT 2000). However, the analysis is not limited to these 
factors alone. The Department examines a number of factors, all of 
which may speak to the commercial realities surrounding the sale of 
subject merchandise. While some bona fides issues may share 
commonalities across various Department cases, each one is company-
specific and may vary with the facts surrounding each sale. See Certain 
Preserved Mushrooms From the People's Republic of China: Final Results 
and Partial Rescission of the New Shipper Review and Final Results and 
Partial Rescission of the Third Antidumping Duty Administrative Review, 
68 FR 41304 (July 11, 2003) and accompanying Issues and Decision 
Memorandum, at 20. The weight given to each factor investigated will 
depend on the circumstances surrounding the sale. See TTPC, at 39.
    As discussed in detail in the Department's DF Rescission Memo, the

[[Page 51753]]

Department has determined that the new shipper sale made by Dafeng 
Shunli was not bona fide because of, (1) the inconsistencies in the 
import documentation; (2) the circumstances surrounding payment for the 
single POR sale; (3) the aberrantly low quantity of the single sale, in 
comparison with other shipments from China; (4) the inconsistencies and 
irregularities regarding the information provided regarding Dafeng 
Shunli's importer as compared to information obtained by the 
Department; (5) information gaps regarding the actual capital investors 
in Dafeng Shunli; and (6) an unreported relationship between Dafeng 
Shunli and Yancheng Yaou Seafood Co., Ltd. As discussed in detail in 
the Department's SB Rescission Memo, the Department has determined that 
the new shipper sale made by Shanghai Blessing was not bona fide 
because, (1) the circumstances obscuring the identity of the producer 
of the subject merchandise; (2) the circumstances surrounding Shanghai 
Blessing's knowledge of the ultimate customer; (3) the atypical 
quantity of the single sale in comparison with other shipments during 
the POR and Shanghai Blessing's post-POR shipments; (4) the decreases 
in the entered value and sales price for post-POR shipments; (5) the 
inconsistencies and irregularities regarding the affiliations of the 
majority owner of Shanghai Blessing's producer; and (6) the incomplete 
and inaccurate responses in the information provided to the Department. 
Since the Department is rescinding the new shipper reviews, we are not 
making a determination as to whether Dafeng Shunli and Shanghai 
Blessing qualify for separate rates. Therefore, Shanghai Blessing and 
Dafeng Shunli will remain part of the PRC-wide entity.

Notification

    The Department will notify the U.S. Customs and Border Protection 
that bonding is no longer permitted to fulfill security requirements 
for shipments by Shanghai Blessing and Dafeng Shunli of freshwater 
crawfish tail meat from the PRC entered, or withdrawn from warehouse, 
for consumption in the United States on or after the publication of 
this rescission notice in the Federal Register, and that a cash deposit 
of 223.01 percent ad valorem should be collected for any entries 
exported by Shanghai Blessing and Dafeng Shunli.
    This notice also serves as the only reminder to parties subject to 
administrative protective orders (``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/destruction of APO material or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and terms of an APO is a violation which is subject to 
sanctions.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(a)(2)(B) and 777(i) of the Act.

    Dated: August 23, 2005.
Barbara E. Tillman,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. E5-4768 Filed 8-30-05; 8:45 am]

BILLING CODE 3510-DS-S