[Federal Register Volume 76, Number 71 (Wednesday, April 13, 2011)]
[Notices]
[Pages 20627-20633]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-8892]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-552-802]


Certain Frozen Warmwater Shrimp From the Socialist Republic of 
Vietnam: Preliminary Results of Antidumping Duty New Shipper Review

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

SUMMARY: On February 1, 2005, the Department of Commerce 
(``Department'') published in the Federal Register the antidumping duty 
order on

[[Page 20628]]

certain frozen warmwater shrimp (``shrimp'') from the Socialist 
Republic of Vietnam (``Vietnam'').\1\ The Department is conducting a 
new shipper review (``NSR'') of the Order, covering the period of 
review (``POR'') of February 1, 2010, through July 31, 2010. If these 
preliminary results are adopted in our final results of review, we will 
instruct U.S. Customs and Border Protection (``CBP'') to assess 
antidumping duties on entries of subject merchandise during the POR for 
which the importer-specific assessment rates are above de minimis.
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    \1\ See Notice of Amended Final Determination of Sales at Less 
Than Fair Value and Antidumping Duty Order: Certain Frozen Warmwater 
Shrimp From the Socialist Republic of Vietnam, 70 FR 5152 (February 
1, 2005) (``Order'').

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DATES: Effective Date: April 13, 2011.

FOR FURTHER INFORMATION CONTACT: Paul Walker, 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) 482-0413.

SUPPLEMENTARY INFORMATION: 

Background

    On August 26, 2010, pursuant to section 751(a)(2)(B)(i) of the 
Tariff Act of 1930, as amended (the ``Act''), and section 351.214(c) of 
the Department's regulations, the Department received a NSR request 
from Quoc Viet Seaproducts Processing Trading and Import-Export Co., 
Ltd. (``Quoc Viet''). Quoc Viet certified that it was the producer and 
exporter of the subject merchandise upon which the request was based. 
On October 1, 2010, the Department published a notice of initiation of 
the NSR of the Order for Quoc Viet.\2\ On September 28, 2010, the 
Department issued its original antidumping duty questionnaire to Quoc 
Viet. Between October 22, 2010, and February 3, 2011, Quoc Viet 
submitted responses to the original and supplemental sections A, C, D 
and Importer antidumping duty questionnaires.
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    \2\ See Certain Frozen Warmwater Shrimp From the Socialist 
Republic of Vietnam: Initiation of Antidumping Duty New Shipper 
Review, 75 FR 60730 (October 1, 2010).
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    On January 4, 2011, the Department sent interested parties a letter 
requesting comments on surrogate country selection and information 
pertaining to valuing factors of production (``FOP''). On January 31, 
2011, Quoc Viet submitted surrogate country comments and surrogate 
value (``SV'') data.\3\
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    \3\ See Quoc Viet's January 31, 2011 submission.
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    On March 23, 2011, the Department extended the deadline for the 
preliminary results of this review to April 14, 2011.\4\
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    \4\ See Certain Frozen Warmwater Shrimp From the Socialist 
Republic of Vietnam: Extension of Preliminary Results of Antidumping 
Duty New Shipper Review, 76 FR 16384 (March 23, 2011).
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Scope of the Order

    The scope of the order includes certain frozen warmwater shrimp and 
prawns, whether wild-caught (ocean harvested) or farm-raised (produced 
by aquaculture), head-on or head-off, shell-on or peeled, tail-on or 
tail-off,\5\ deveined or not deveined, cooked or raw, or otherwise 
processed in frozen form.
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    \5\ ``Tails'' in this context means the tail fan, which includes 
the telson and the uropods.
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    The frozen warmwater shrimp and prawn products included in the 
scope of the order, regardless of definitions in the Harmonized Tariff 
Schedule of the United States (``HTSUS''), are products which are 
processed from warmwater shrimp and prawns through freezing and which 
are sold in any count size.
    The products described above may be processed from any species of 
warmwater shrimp and prawns. Warmwater shrimp and prawns are generally 
classified in, but are not limited to, the Penaeidae family. Some 
examples of the farmed and wild-caught warmwater species include, but 
are not limited to, white leg shrimp (Penaeus vannemei), banana prawn 
(Penaeus merguiensis), fleshy prawn (Penaeus chinensis), giant river 
prawn (Macrobrachium rosenbergii), giant tiger prawn (Penaeus monodon), 
redspotted shrimp (Penaeus brasiliensis), southern brown shrimp 
(Penaeus subtilis), southern pink shrimp (Penaeus notialis), southern 
rough shrimp (Trachypenaeus curvirostris), southern white shrimp 
(Penaeus schmitti), blue shrimp (Penaeus stylirostris), western white 
shrimp (Penaeus occidentalis) and Indian white prawn (Penaeus indicus).
    Frozen shrimp and prawns that are packed with marinade, spices or 
sauce are included in the scope of the order. In addition, food 
preparations, which are not ``prepared meals,'' that contain more than 
20 percent by weight of shrimp or prawn are also included in the scope 
of the order.
    Excluded from the scope are: (1) Breaded shrimp and prawns (HTS 
subheading 1605.20.1020); (2) shrimp and prawns generally classified in 
the Pandalidae family and commonly referred to as coldwater shrimp, in 
any state of processing; (3) fresh shrimp and prawns whether shell-on 
or peeled (HTS subheadings 0306.23.0020 and 0306.23.0040); (4) shrimp 
and prawns in prepared meals (HTS subheading 1605.20.0510); (5) dried 
shrimp and prawns; (6) canned warmwater shrimp and prawns (HTS 
subheading 1605.20.1040); (7) certain dusted shrimp; and (8) certain 
battered shrimp. Dusted shrimp is a shrimp-based product: (1) That is 
produced from fresh (or thawed-from-frozen) and peeled shrimp; (2) to 
which a ``dusting'' layer of rice or wheat flour of at least 95 percent 
purity has been applied; (3) with the entire surface of the shrimp 
flesh thoroughly and evenly coated with the flour; (4) with the non-
shrimp content of the end product constituting between four and 10 
percent of the product's total weight after being dusted, but prior to 
being frozen; and (5) that is subjected to IQF freezing immediately 
after application of the dusting layer. Battered shrimp is a shrimp-
based product that, when dusted in accordance with the definition of 
dusting above, is coated with a wet viscous layer containing egg and/or 
milk, and par-fried.
    The products covered by the order are currently classified under 
the following HTSUS subheadings: 0306.13.0003, 0306.13.0006, 
0306.13.0009, 0306.13.0012, 0306.13.0015, 0306.13.0018, 0306.13.0021, 
0306.13.0024, 0306.13.0027, 0306.13.0040, 1605.20.1010 and 
1605.20.1030. These HTSUS subheadings are provided for convenience and 
for customs purposes only and are not dispositive, but rather the 
written description of the scope of the order is dispositive.

Non-Market Economy Country Status

    In every case conducted by the Department involving Vietnam, 
Vietnam has been treated as a non-market (``NME'') country. In 
accordance with section 771(18)(C)(i) of the Act, any determination 
that a foreign country is an NME country shall remain in effect until 
revoked by the administering authority.\6\ None of the parties to this 
proceeding have contested such treatment. Accordingly, we calculated 
normal value (``NV'') in accordance with section 773(c) of the Act, 
which applies to NME countries.
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    \6\ See Certain Frozen Fish Fillets From the Socialist Republic 
of Vietnam: Final Results of the Antidumping Duty Administrative 
Review and New Shipper Reviews, 74 FR 11349 (March 17, 2009).
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Separate Rate Determination

    In proceedings involving NME countries, there is a rebuttable 
presumption that all companies within the country are subject to 
government control and, thus, should be assessed a single antidumping 
duty rate. It is the

[[Page 20629]]

Department's standard policy to assign all exporters of the merchandise 
subject to review in NME countries a single rate unless an exporter can 
affirmatively demonstrate an absence of government control, both in law 
(de jure) and in fact (de facto), with respect to exports. To establish 
whether a company is sufficiently independent to be entitled to a 
separate, company-specific rate, the Department analyzes each exporting 
entity in an NME country under the test established in the Final 
Determination of Sales at Less than Fair Value: Sparklers from the 
People's Republic of China, 56 FR 20588 (May 6, 1991) (``Sparklers''), 
as amplified by the Notice of Final Determination of Sales at Less Than 
Fair Value: Silicon Carbide From the People's Republic of China, 59 FR 
22585 (May 2, 1994) (``Silicon Carbide'').

A. Absence of De Jure Control

    The Department considers the following de jure criteria in 
determining whether an individual company may be granted a separate 
rate: (1) an absence of restrictive stipulations associated with an 
individual exporter's business and export licenses; and (2) any 
legislative enactments decentralizing control of companies.
    In this NSR, Quoc Viet submitted complete responses to the separate 
rate section of the Department's NME questionnaire. The evidence 
submitted by Quoc Viet includes government laws and regulations on 
corporate ownership, business licenses, and narrative information 
regarding its operations and selection of management. The evidence 
provided by Quoc Viet supports a finding of a de jure absence of 
government control over each of its export activities. Thus, we believe 
that the evidence on the record supports a preliminary finding of an 
absence of de jure government control based on: (1) An absence of 
restrictive stipulations associated with the exporter's business 
license; and (2) the legal authority on the record decentralizing 
control over Quoc Viet.

B. Absence of De Facto Control

    The absence of de facto government control over exports is based on 
whether the respondent: (1) Sets its own export prices independent of 
the government and other exporters; (2) retains the proceeds from its 
export sales and makes independent decisions regarding the disposition 
of profits or financing of losses; (3) has the authority to negotiate 
and sign contracts and other agreements; and (4) has autonomy from the 
government regarding the selection of management.\7\
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    \7\ See Silicon Carbide, 59 FR at 22587; Sparklers, 56 FR at 
20589; see also Notice of Final Determination of Sales at Less Than 
Fair Value: Furfuryl Alcohol from the People's Republic of China, 60 
FR 22544, 22545 (May 8, 1995).
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    In its questionnaire responses, Quoc Viet submitted evidence 
indicating an absence of de facto government control over its export 
activities. Specifically, this evidence indicates that: (1) Quoc Viet 
sets its own export prices independent of the government and without 
the approval of a government authority; (2) Quoc Viet retains the 
proceeds from its sales and makes independent decisions regarding the 
disposition of profits or financing of losses; (3) Quoc Viet has a 
general manager, branch manager or division manager with the authority 
to negotiate and bind the company in an agreement; (4) the general 
manager is selected by the board of directors or company employees, and 
the general manager appoints the deputy managers and the manager of 
each department; and (5) there is no restriction on any of either 
company's use of export revenues. Therefore, the Department 
preliminarily finds that Quoc Viet has established prima facie that it 
qualifies for a separate rate under the criteria established by Silicon 
Carbide and Sparklers.

New Shipper Review Bona Fide Analysis

    Consistent with the Department's practice, we investigated the bona 
fide nature of the sale made by Quoc Viet in this NSR. We found that 
the sale by Quoc Viet was made on a bona fide basis.\8\ Based on our 
investigation into the bona fide nature of the sale, the questionnaire 
responses submitted by Quoc Viet, and the company's eligibility for 
separate rates (see Separate Rate Determination section above), we 
preliminarily determine that Quoc Viet has met the requirement to 
qualify as a new shipper during this POR. Therefore, for the purposes 
of these preliminary results, we are treating Quoc Viet's sale of 
subject merchandise to the United States as an appropriate transaction 
for this NSR.
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    \8\ For more detailed discussion of this issue, see Memorandum 
to the File, through Scot T. Fullerton, Program Manager, Office IX, 
from Paul Walker, Case Analyst, ``Bona Fide Nature of the Sale in 
the Antidumping Duty New Shipper Review of Certain Warmwater Shrimp 
from the Socialist Republic of Vietnam: Quoc Viet Seaproducts 
Processing Trading and Import-Export Co., Ltd.,'' dated concurrently 
with this notice.
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Surrogate Country

    When the Department conducts a review of imports from an NME 
country, section 773(c)(1) of the Act directs it to base NV, in most 
circumstances, on the NME producer's FOPs, valued in a surrogate market 
economy (``ME'') country or countries considered to be appropriate by 
the Department. In accordance with section 773(c)(4) of the Act, in 
valuing the FOPs, the Department shall utilize, to the extent possible, 
the prices or costs of FOPs in one or more ME countries that are: (1) 
at a level of economic development comparable to that of the NME 
country; and (2) significant producers of comparable merchandise. 
Further, pursuant to section 351.408(c)(2) of the Department's 
regulations, the Department will normally value FOPs in a single 
country, except for labor. The sources of the surrogate factor values 
are discussed under the ``Normal Value'' section below.\9\
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    \9\ See also Memorandum to the File, through Scot T. Fullerton, 
Program Manager, Office IX, ``Fourth New Shipper Review of Frozen 
Warmwater Shrimp from Vietnam: Surrogate Values for the Preliminary 
Results,'' dated concurrently with this notice (``SV Memo'').
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    As noted above, on January 4, 2011, the Department sent interested 
parties a letter requesting comments on surrogate country selection and 
information pertaining to valuing FOPs. On January 31, 2011, the 
Department received comments from Quoc Viet suggesting that the 
Department select Bangladesh as the surrogate country, as well as 
Bangladeshi SV data.\10\
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    \10\ See Quoc Viet's January 31, 2011 submission.
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    Pursuant to its practice, the Department received a list of 
potential surrogate countries from Import Administration's Office of 
Policy (``OP'').\11\ The OP determined that Bangladesh, Pakistan, 
India, Sri Lanka, the Philippines and Indonesia were at a comparable 
level of economic development to Vietnam.\12\ The Department considers 
the six countries identified by the OP in its Surrogate Country List as 
``equally comparable in terms of economic development.'' \13\ Thus, we 
find that Bangladesh, Pakistan, India, Sri Lanka, the Philippines, and 
Indonesia are all at an economic level of development equally 
comparable to that of Vietnam. We note that the Surrogate Country List 
is a non-exhaustive list of economically comparable countries.
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    \11\ See Memorandum from Carole Showers, Director, Office of 
Policy, to Scot T. Fullerton, Program Manager, AD/CVD Operations, 
Office 9, ``Request for a List of Surrogate Countries for New 
Shipper Review of the Antidumping Duty Order on Frozen Warmwater 
Shrimp from the Socialist Republic of Vietnam,'' dated December 6, 
2010 (``Surrogate Country List'').
    \12\ Id.
    \13\ Id.

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[[Page 20630]]

    Quoc Viet submitted evidence that Bangladesh, Pakistan, India, Sri 
Lanka, the Philippines and Indonesia are all significant producers of 
comparable merchandise.\14\ However, while we find that these countries 
are economically comparable to Vietnam and produce comparable 
merchandise, we note that the record contains no publicly available SV 
factor information for Pakistan, India, Sri Lanka, the Philippines or 
Indonesia.
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    \14\ See Quoc Viet's January 31, 2011 submission at Exhibit 1.
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    With regard to Bangladesh, the record contains publicly available 
surrogate factor value information. Given the above-cited facts, we 
find that the information on the record shows that Bangladesh is an 
appropriate surrogate country because Bangladesh is at a similar level 
of economic development pursuant to section 773(c)(4) of the Act, is a 
significant producer of comparable merchandise, and has reliable, 
publicly available data for surrogate valuation purposes.

U.S. Price

    For Quoc Viet's export price (``EP'') sale, we used the EP 
methodology, pursuant to section 772(a) of the Act, because the first 
sale to an unaffiliated purchaser was made prior to importation and 
constructed export price was not otherwise warranted by the facts on 
the record. We calculated EP based on cost and freight foreign port 
price to the first unaffiliated purchaser in the United States. We also 
deducted foreign inland freight, and foreign brokerage and handling 
from the starting price (or gross unit price), in accordance with 
section 772(c) of the Act. We reviewed the movement expenses incurred 
in Vietnam by Quoc Viet and found that they were provided by an NME 
vendor or paid for using Vietnamese currency. Thus, we based the 
deduction of these movement charges on SVs.\15\
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    \15\ See SV Memo for details regarding the SVs for movement 
expenses.
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Normal Value

A. Methodology

    Section 773(c)(1)(B) of the Act provides that the Department shall 
determine the NV using an FOP methodology if the merchandise is 
exported from an NME country and the information does not permit the 
calculation of NV using home-market prices, third-country prices, or 
constructed value under section 773(a) of the Act. The Department bases 
NV on FOPs because the presence of government controls on various 
aspects of NMEs renders price comparisons and the calculation of 
production costs invalid under the Department's normal methodologies.
    Section 773(c)(1) of the Act provides that the Department shall 
determine the NV using an FOP methodology if: (1) the merchandise is 
exported from an NME country; and (2) the information does not permit 
the calculation of NV using home market prices, third country prices, 
or constructed value under section 773(a) of the Act.

B. Factor Valuations \16\
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    \16\ In accordance with section 351.301(c)(3)(ii) of the 
Department's regulations, for the final results in an antidumping 
NSR, interested parties may submit publicly available information to 
value FOPs within 20 days after the date of publication of the 
preliminary results.
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    In accordance with section 773(c) of the Act, we calculated NV 
based on FOPs reported by Quoc Viet for the POR. To calculate NV, we 
multiplied the reported per-unit factor-consumption rates by publicly 
available Bangladeshi SVs. In selecting SVs, we considered the quality, 
specificity and contemporaneity of the data. As appropriate, we 
adjusted input prices by including freight costs to make them delivered 
prices. Specifically, we added to Bangladeshi import SVs a surrogate 
freight cost using the shorter of the reported distance from the 
domestic supplier to the factory of production, or the distance from 
the nearest seaport to the factory of production, where appropriate. 
This adjustment is in accordance with the Court of Appeals for the 
Federal Circuit's (``CAFC'') decision in Sigma Corp. v. United States, 
117 F.3d 1401, 1407-1408 (Fed. Cir. 1997). Where we did not use 
Bangladeshi Import Statistics, we calculated freight based on the 
reported distance from the supplier to the factory.
    In accordance with the OTCA 1988 legislative history, the 
Department continues to apply its long-standing practice of 
disregarding SVs if it has a reason to believe or suspect the source 
data may be subsidized.\17\ In this regard, the Department has 
previously found that it is appropriate to disregard such prices from 
India, Indonesia, South Korea and Thailand because we have determined 
that these countries maintain broadly available, non-industry specific 
export subsidies.\18\ Based on the existence of these subsidy programs 
that were generally available to all exporters and producers in these 
countries at the time of the POR, the Department finds that it is 
reasonable to infer that all exporters from India, Indonesia, South 
Korea and Thailand may have benefitted from these subsidies.
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    \17\ See Omnibus Trade and Competitiveness Act of 1988, Conf. 
Report to Accompany H.R. 3, H.R. Rep. No. 576, 100th Cong., 2nd 
Sess. (1988) (``OTCA 1988'') at 590.
    \18\ See, e.g., Carbazole Violet Pigment 23 from India: Final 
Results of the Expedited Five-year (Sunset) Review of the 
Countervailing Duty Order, 75 FR 13257 (March 19, 2010) and 
accompanying Issues and Decision Memorandum at 4-5; Certain Cut-to-
Length Carbon-Quality Steel Plate from Indonesia: Final Results of 
Expedited Sunset Review, 70 FR 45692 (August 8, 2005) and 
accompanying Issues and Decision Memorandum at 4; see Corrosion-
Resistant Carbon Steel Flat Products from the Republic of Korea: 
Final Results of Countervailing Duty Administrative Review, 74 FR 
2512 (January 15, 2009) and accompanying Issues and Decision 
Memorandum at 17, 19-20; see Final Affirmative Countervailing Duty 
Determination: Certain Hot-Rolled Carbon Steel Flat Products from 
Thailand, 66 FR 50410 (October 3, 2001) and accompanying Issues and 
Decision Memorandum at 23.
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    Additionally, we disregarded prices from NME countries.\19\ 
Finally, imports that were labeled as originating from an 
``unspecified'' country were excluded from the average value, because 
the Department could not be certain that they were not from either an 
NME country or a country with general export subsidies.\20\ Lastly, the 
Department has also excluded imports from Bangladesh into Bangladesh 
because there is no evidence on the record regarding what these data 
represent (e.g., re-importations, another category of unspecified 
imports, or the result of an error in reporting). Thus, these data do 
not represent the best available information upon which to rely for 
valuation purposes.\21\
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    \19\ See Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, from the People's Republic of China; Final Results of 
1998-1999 Administrative Review, Partial Rescission of Review, and 
Determination Not To Revoke Order in Part, 66 FR 1953 (January 10, 
2001) and accompanying Issues and Decision Memorandum at Comment 1.
    \20\ See Notice of Final Determination of Sales at Less Than 
Fair Value and Negative Final Determination of Critical 
Circumstances: Certain Color Television Receivers from the People's 
Republic of China, 69 FR 20594 (April 16, 2004).
    \21\ See Certain Frozen Warmwater Shrimp from the Socialist 
Republic of Vietnam: Final Results and Partial Rescission of 
Antidumping Duty Administrative Review, 75 FR 47771 (August 9, 2010) 
and accompanying Issues and Decision Memorandum at Comment 6.
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    Therefore, based on the information currently available, we have 
not used prices from these countries either in calculating the 
Bangladeshi import-based SVs or in calculating ME input values. In 
instances where an ME input was obtained solely from suppliers located 
in these countries, we used Bangladeshi import-based SVs to value the 
input.
    To value Quoc Viet's raw shrimp input, we used data for Bangladesh 
from

[[Page 20631]]

a study conducted by the Network of Aquaculture Centres in Asia-Pacific 
(``NACA''), an intergovernmental organization affiliated with the 
United Nation's (``UN'') Food and Agricultural Organization (``FAO''). 
The Department's practice when selecting the best available information 
for valuing FOPs, in accordance with section 773(c)(1) of the Act, is 
to select, to the extent practicable, SVs which are product-specific, 
representative of a broad-market average, publicly available, 
contemporaneous with the POR and exclusive of taxes and duties.\22\ The 
Department notes that the value of the main input, head-on, shell-on 
shrimp, is a critical FOP in the dumping calculation as it accounts for 
a significant percentage of NV. Moreover, the ability to value shrimp 
on a count-size basis is a significant consideration with respect to 
the data available on the record, as the subject merchandise and the 
raw shrimp input are both sold on a count-size specific basis. The 
Bangladeshi shrimp values within the NACA study are compiled by the 
UN's FAO from actual pricing records kept by Bangladeshi farmers, 
traders, depots, agents, and processors. The Bangladeshi shrimp values 
within the NACA study are publicly available, represent a broad-market 
average, are product-specific, count-size-specific, contemporaneous and 
represent actual transaction prices.\23\
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    \22\ See Fresh Garlic from the People's Republic of China: Final 
Results and Partial Rescission of the Eleventh Administrative Review 
and New Shipper Reviews, 72 FR 34438 (June 22, 2007) and 
accompanying Issues and Decision Memorandum at Comment 2A.
    \23\ The calculation for shrimp and all other surrogate values 
listed below may be found in the SV Memo.
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    The Department used UN ComTrade Statistics, provided by the UN 
Department of Economic and Social Affairs' Statistics Division, as its 
primary source of Bangladeshi SV data to value the raw material and 
packing material inputs that Quoc Viet used to produce the merchandise 
under review during the POR, except where listed below.\24\ For a 
detailed description of all SVs, see SV Memo. The data represents 
cumulative values for the calendar year 2007, for inputs classified by 
the Harmonized Commodity Description and Coding System number. As noted 
above, for each input value, we used the average value per unit for 
that input imported into Bangladesh from all countries that the 
Department has not previously determined to be NME countries, countries 
that the Department has determined to be countries which subsidized 
exports (i.e., Indonesia, South Korea, Thailand, and India), imports 
from unspecified countries and imports from Bangladesh into Bangladesh.
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    \24\ This can be accessed online at: http://www.unstats.un.org/unsd/comtrade/.
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    It is the Department's practice to calculate price index adjustors 
to inflate or deflate, as appropriate, SVs that are not contemporaneous 
with the POR using the wholesale price index (``WPI'') for the subject 
country.\25\ However, in this case, a WPI was not available for 
Bangladesh. Therefore, where publicly available information 
contemporaneous with the POR with which to value factors could not be 
obtained, SVs were adjusted using the Consumer Price Index (``CPI'') 
rate for Bangladesh, or the WPI for India or Indonesia (for certain SVs 
where Bangladeshi data could not be obtained), as published in the 
International Financial Statistics of the International Monetary Fund.
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    \25\ See Notice of Preliminary Determination of Sales at Less 
Than Fair Value and Postponement of Final Determination: Hand Trucks 
and Certain Parts Thereof from the People's Republic of China, 69 FR 
29509 (May 24, 2004).
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    Where necessary, the Department made currency conversions into U.S. 
dollars, in accordance with section 773A(a) of the Act, based on the 
exchange rates in effect on the dates of the U.S. sales, as certified 
by the Federal Reserve Bank. We relied on the daily exchange rates 
posted on the Import Administration Web site.\26\
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    \26\ See http://www.trade.gov/ia/, see also SV Memo.
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    On May 14, 2010, the CAFC in Dorbest Ltd. v. United States, 604 
F.3d 1363, 1372 (CAFC 2010), found that the regression-based method for 
calculating wage rates, as stipulated by section 351.408(c)(3) of the 
Department's regulations, uses data not permitted by the statutory 
requirements laid out in section 773 of the Act (i.e., 19 U.S.C. 
1677b(c)). The Department is continuing to evaluate options for 
determining labor values in light of the recent CAFC decision. However, 
for these preliminary results, we have calculated an hourly wage rate 
to use in valuing the respondent's reported labor input by averaging 
industry-specific earnings and/or wages in countries that are 
economically comparable to Vietnam and that are significant producers 
of comparable merchandise.
    For the preliminary results of this NSR, the Department is valuing 
labor using a simple average industry-specific wage rate using earnings 
or wage data reported under Chapter 5B by the International Labor 
Organization (``ILO''). To achieve an industry-specific labor value, we 
relied on industry-specific labor data from the countries we determined 
to be both economically comparable to Vietnam, and significant 
producers of comparable merchandise. A full description of the 
industry-specific wage rate calculation methodology is provided in the 
SV Memo. The Department calculated a simple average industry-specific 
wage rate of $1.09 for these preliminary results. Specifically, for 
this review, the Department has calculated the wage rate using a simple 
average of the data provided to the ILO under Sub-Classification 15 of 
the ISIC-Revision 3 standard by countries determined to be both 
economically comparable to Vietnam and significant producers of 
comparable merchandise. The Department finds the two-digit description 
under ISIC-Revision 3 (``Manufacture of Food Products and Beverages'') 
to be the best available wage rate SV on the record because it is 
specific and derived from industries that produce merchandise 
comparable to the subject merchandise. Consequently, we averaged the 
ILO industry-specific wage rate data or earnings data available from 
the following countries found to be economically comparable to Vietnam 
and are significant producers of comparable merchandise: The 
Philippines, Egypt and Indonesia. For further information on the 
calculation of the wage rate, see SV Memo.
    We valued electricity using data from the Bangladesh Ministry of 
Power, Energy, & Mineral Resources. This information was published on 
their Power Division's website. We valued water using 2007 data from 
the Asian Development Bank. We inflated the value using the POR average 
CPI rate. We valued diesel using data published by the World Bank in 
``Bangladesh: Transport at a Glance,'' published in June 2006. We 
inflated the value using the POR average CPI rate.
    To value truck freight and motorcycle freight, we used data 
published in 2008 Statistical Yearbook of Bangladesh published by the 
Bangladesh Bureau of Statistics. We inflated the value using the POR 
average CPI rate. We valued containerization using Indian information 
previously available on the Import Administration Web site. We inflated 
the value using the POR average WPI rate. We valued brokerage and 
handling using a price list of export procedures necessary to export a 
standardized cargo of goods in Bangladesh. The price list is compiled 
based on a survey case study of the procedural requirements for trading 
a standard shipment of goods by ocean transport in India that is 
published in

[[Page 20632]]

Doing Business 2011: Bangladesh, published by the World Bank.
    We valued the by-product using shell scrap values using a surrogate 
value for shrimp by-products based on a purchase price quote for wet 
shrimp shells from an Indonesian buyer of crustacean shells. Although 
we recognize that Quoc Viet reported by-products other than shells and 
that this surrogate value is not from Bangladesh, the primary surrogate 
country, this information represents the best information on the record 
and has been used in past case segments.\27\ Moreover, we also note 
that this is the only surrogate value on the record for by-products, 
and as a consequence, is being used for these preliminary results. We 
inflated the value using the POR average WPI rate.\28\
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    \27\ See SV Memo which contains the following memorandum: 
Memorandum to Barbara E. Tillman, Director, Office of AD/CVD 
Enforcement VII, through Maureen Flannery, Program Manager, Office 
of AD/CVD Enforcement VII, from Christian Hughes and Adina 
Teodorescu, Case Analysts, ``Surrogate Valuation of Shell Scrap: 
Freshwater Crawfish Tail Meat from the People's Republic of China 
(PRC), Administrative Review 9/1/00-8/31/00 and New Shipper Reviews 
9/1/00-8/31/01 and 9/1/00-10/15/01.''
    \28\ Id.
---------------------------------------------------------------------------

    To value factory overhead, selling, general and administrative 
expenses, and profit, we used the simple average of the 2009-2010 
financial statement of Apex Foods Limited and the 2008-2009 financial 
statement of Gemini Seafood Limited, both of which are Bangladeshi 
shrimp processors.\29\
---------------------------------------------------------------------------

    \29\ See SV Memo at Exhibit 8.
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Preliminary Results of Review

    The Department has preliminarily determined that the following 
dumping margin exists for the period February 1, 2010, through July 31, 
2010:

              Certain Frozen Warmwater Shrimp From Vietnam
------------------------------------------------------------------------
           Manufacturer/exporter                        Margin
------------------------------------------------------------------------
Quoc Viet..................................  de minimis
------------------------------------------------------------------------

Disclosure

    The Department will disclose to parties of this proceeding the 
calculation performed in reaching the preliminary results within five 
days of the date of publication of this notice in accordance with 
section 351.224(b) of the Department's regulations.

Comments

    In accordance with section 351.301(c)(3)(ii) of the Department's 
regulations, for the final results, interested parties may submit 
publicly available information to value FOPs within 20 days after the 
date of publication of these preliminary results. Interested parties 
must provide the Department with supporting documentation for the 
publicly available information to value each FOP. Additionally, in 
accordance with section 351.301(c)(1) of the Department's regulations, 
for the final results of this NSR, interested parties may submit 
factual information to rebut, clarify, or correct factual information 
submitted by an interested party within ten days of the applicable 
deadline for submission of such factual information. However, the 
Department notes that section 351.301(c)(1) of the Department's 
regulations permits new information only insofar as it rebuts, 
clarifies, or corrects information recently placed on the record.\30\
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    \30\ See Glycine from the People's Republic of China: Final 
Results of Antidumping Duty Administrative Review and Final 
Rescission, in Part, 72 FR 58809 (October 17, 2007) and accompanying 
Issues and Decision Memorandum at Comment 2.
---------------------------------------------------------------------------

    In accordance with section 351.309(c)(ii) of the Department's 
regulations, interested parties may submit case briefs and/or written 
comments no later than 30 days after the date of publication of the 
preliminary results of this NSR. In accordance with section 351.309(d) 
of the Department's regulations, rebuttal briefs and rebuttals to 
written comments, limited to issues raised in such briefs or comments, 
may be filed no later than five days after the deadline for submitting 
the case briefs. The Department requests that interested parties 
provide an executive summary of each argument contained within the case 
briefs and rebuttal briefs.
    Any interested party may request a hearing within 30 days of 
publication of these preliminary results.\31\ 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. Oral presentations will be limited to issues raised in 
the briefs. If we receive a request for a hearing, we plan to hold the 
hearing seven days after the deadline for submission of the rebuttal 
briefs at the U.S. Department of Commerce, 14th Street and Constitution 
Avenue, NW., Washington, DC 20230.
---------------------------------------------------------------------------

    \31\ See section 351.310(c) of the Department's regulations.
---------------------------------------------------------------------------

    The Department intends to issue the final results of this NSR, 
which will include the results of its analysis raised in any such 
comments, within 90 days of publication of these preliminary results, 
pursuant to section 351.214(i) of the Department's regulations.

Assessment Rates

    Upon issuance of the final results, the Department will determine, 
and CBP shall assess, antidumping duties on all appropriate entries 
covered by this NSR. The Department intends to issue assessment 
instructions to CBP 15 days after the publication date of the final 
results of this NSR. If these preliminary results are adopted in our 
final results of review, the Department shall determine, and CBP shall 
assess, antidumping duties on all appropriate entries. Pursuant to 
section 351.212(b)(1) of the Department's regulations, we will 
calculate importer-specific (or customer) ad valorem duty assessment 
rates. We will instruct CBP to assess antidumping duties on all 
appropriate entries covered by this review if any importer-specific 
assessment rate calculated in the final results of this review is above 
de minimis.

Cash-Deposit Requirements

    The following cash deposit requirement will be effective upon 
publication of the final results of this NSR for all shipments of 
subject merchandise produced and exported from Quoc Viet entered, or 
withdrawn from warehouse, for consumption on or after the publication 
date, as provided for by section 751(a)(2)(C) of the Act: (1) for 
subject merchandise produced and exported by Quoc Viet, the cash 
deposit rate will be the rate established in the final results of this 
NSR. If the cash deposit rate calculated in the final results is zero 
or de minimis, no cash deposit will be required for the specific 
producer-exporter combination listed above. The cash deposit 
requirement, when imposed, shall remain in effect until further notice.

Notification to Importers

    This notice serves as a preliminary reminder to importers of its 
responsibility under section 351.402(f)(2) of the Department's 
regulations to file a certificate regarding the reimbursement of 
antidumping duties prior to liquidation of the relevant entries during 
this POR. Failure to comply with this requirement could result in the 
Secretary's presumption that reimbursement of antidumping duties 
occurred and the subsequent assessment of double antidumping duties.
    We are issuing and publishing this notice in accordance with 
sections 751(a)(2)(B) and 777(i) of the Act, and section 351.214(h) and 
351.221(b)(4) of the Department's regulations.


[[Page 20633]]


    Dated: April 6, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-8892 Filed 4-12-11; 8:45 am]
BILLING CODE 3510-DS-P