[Federal Register Volume 69, Number 246 (Thursday, December 23, 2004)]
[Notices]
[Pages 76918-76920]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-28171]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-549-822]


Notice of Final Determination of Sales at Less Than Fair Value 
and Negative Final Determination of Critical Circumstances: Certain 
Frozen and Canned Warmwater Shrimp From Thailand

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

EFFECTIVE DATE: December 23, 2004.
SUMMARY: On August 4, 2004, the Department of Commerce published its 
preliminary determination of sales at less than fair value of certain 
frozen and canned warmwater shrimp from Thailand. The period of 
investigation is October 1, 2002, through September 30, 2003.
    Based on our analysis of the comments received, we have made 
changes in the margin calculations. Therefore, the final determination 
differs from the preliminary determination. The final weighted-average 
dumping margins for the investigated companies are listed below in the 
section entitled ``Final Determination Margins.''

FOR FURTHER INFORMATION CONTACT: Irina Itkin or Alice Gibbons, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
20230; telephone: (202) 482-0656 or (202) 482-0498, respectively.

SUPPLEMENTARY INFORMATION:

Final Determination

    We determine that certain frozen and canned warmwater shrimp from 
Thailand is being, or is likely to be, sold in the United States at 
less-than-fair-value (LTFV), as provided in section 735 of the Tariff 
Act of 1930, as amended (the Act). The estimated margins of sales of 
LTFV are shown in the ``Continuation of Suspension of Liquidation'' 
section of this notice. In addition, we determine that there is no 
reasonable basis to believe or suspect that critical circumstances 
exist with respect to imports of the subject merchandise from Thailand.

Case History

    The preliminary determination in this investigation was published 
on August 4, 2004. See Notice of Preliminary Determination of Sales at 
Less Than Fair Value, Postponement of Final Determination, and Negative 
Critical

[[Page 76919]]

Circumstances Determination: Certain Frozen and Canned Warmwater Shrimp 
From Thailand, 69 FR 47100 (Aug. 4, 2004) (Preliminary Determination).
    Since the preliminary determination, the following events have 
occurred. During the period July through October 2004, various 
interested parties, including the petitioners,\1\ submitted comments on 
the scope of this and the concurrent investigations of certain frozen 
and canned warmwater shrimp.
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    \1\ The petitioners in this investigation are the Ad Hoc Shrimp 
Trade Action Committee (an ad hoc coalition representative of U.S. 
producers of frozen and canned warmwater shrimp and harvesters of 
wild-caught warmwater shrimp), Versaggi Shrimp Corporation, and 
Indian Ridge Shrimp Company.
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    In August and September 2004, we conducted verification of the 
questionnaire responses of the three respondents in this case, Andaman 
Seafood Co., Ltd., Chanthaburi Seafoods Co., Ltd., and Thailand Fishery 
Cold Storage Public Co., Ltd. (collectively ``the Rubicon Group''); 
Thai I-Mei Frozen Foods Co., Ltd. (Thai I-Mei); and the Union Frozen 
Products Co., Ltd. (UFP).
    In October and November 2004, we received case briefs from the 
petitioners, the respondents, and the Government of Thailand and Xian-
Ning Seafood Co., Ltd., interested parties in this investigation, and 
rebuttal briefs from the petitioners, the Rubicon Group, and Thai I-
Mei. Two of the respondents (i.e., the Rubicon Group and Thai I-Mei) 
and the American Breaded Shrimp Processors, an interested party, 
requested that a hearing be held by the Department. However, in 
November 2004, the Department canceled the hearing because the Rubicon 
Group and Thai I-Mei withdrew their requests. See the November 3, 2004, 
memorandum to the file from Alice Gibbons entitled, ``Cancellation of 
Public Hearing in the Antidumping Duty Investigation on Certain Frozen 
and Canned Warmwater Shrimp from Thailand.'' On November 23, 2004, the 
Department convened a public hearing on scope issues.
    On November 29, 2004, the Department made final scope 
determinations with respect to shrimp scampi and dusted and battered 
shrimp. See the November 29, 2004, Memoranda from Edward C. Yang to 
Barbara E. Tillman, Acting Deputy Assistant Secretary for Import 
Administration entitled ``Scope Clarification on Shrimp Scampi''; and 
``Scope Clarification on Dusted Shrimp and Battered Shrimp,'' 
respectively. See also the ``Scope of Investigation'' section of this 
notice, below, for further discussion.\2\
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    \2\ In addition to these scope determinations, the Department 
previously made five other scope determinations: (1) On May 21, 
2004, the Department declined to expand the scope of this 
investigation to include fresh (never frozen) shrimp; (2) on July 2, 
2004, pursuant to a request from Ocean Duke Corporation, an 
interested party in this investigation, the Department found that 
its ``Seafood Mix'' is excluded from the scope of this 
investigation; (3) on July 2, 2004, the Department found that salad 
shrimp, sold in counts of 250 pieces or higher, are included within 
the scope of this investigation; (4) on July 2, 2004, the Department 
found that Macrobrachium rosenbergii and organic shrimp are included 
within the scope of this investigation; and (5) on July 2, 2004, the 
Department found that peeled shrimp are included within the scope of 
this investigation.
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    Also on November 29, 2004, the Department clarified that a shrimp 
sauce produced by a company in the companion investigation of frozen 
and canned warmwater shrimp from the People's Republic of China, Lee 
Kum Kee (USA) Inc., is not covered by the scope of that investigation. 
See the November 29, 2004, Memorandum from Edward C. Yang to Barbara E. 
Tillman, Acting Deputy Assistant Secretary for Import Administration 
entitled ``Scope Clarification on Lee Kum Kee's Shrimp Sauce.''

Period of Investigation

    The period of investigation is October 1, 2002, through September 
30, 2003.

Analysis of Comments Received

    The various scope issues are discussed in the ``Case History'' 
section of this notice and the separate scope memoranda. All other 
issues raised in the case and rebuttal briefs by parties in this 
investigation are addressed in the ``Issues and Decision Memorandum'' 
(Decision Memorandum) from Barbara E. Tillman, Acting Deputy Assistant 
Secretary for Import Administration to James Jochum, Assistant 
Secretary for Import Administration, dated December 17, 2004, which is 
adopted by this notice. Parties can find a complete discussion of the 
issues raised in this investigation and the corresponding 
recommendations in this public memorandum, which is on file in the 
Central Records Unit, room B-099 of the main Commerce Building. In 
addition, a complete version of the Decision Memorandum can be accessed 
directly on the Web at http://ia.ita.doc.gov/frn/index.html. The paper 
copy and electronic version of the Decision Memorandum are identical in 
content.

Scope of Investigation

    The scope of this investigation includes certain warmwater shrimp 
and prawns, whether frozen or canned, wild-caught (ocean harvested) or 
farm-raised (produced by aquaculture), head-on or head-off, shell-on or 
peeled, tail-on or tail-off,\3\ deveined or not deveined, cooked or 
raw, or otherwise processed in frozen or canned form.
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    \3\ ``Tails'' in this context means the tail fan, which includes 
the telson and the uropods.
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    The frozen or canned warmwater shrimp and prawn products included 
in the scope of this investigation, regardless of definitions in the 
Harmonized Tariff Schedule of the United States (``HTSUS''), are 
products which are processed from warmwater shrimp and prawns through 
either freezing or canning 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, whiteleg 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 this investigation. 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 this investigation.
    Excluded from the scope are: (1) Breaded shrimp and prawns 
(1605.20.10.20); (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 (0306.23.00.20 and 0306.23.00.40); (4) shrimp and prawns in 
prepared meals (1605.20.05.10); (5) dried shrimp and prawns; (6) dusted 
shrimp; and (7) 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

[[Page 76920]]

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 this investigation are currently classified 
under the following HTSUS subheadings: 0306.13.00.03, 0306.13.00.06, 
0306.13.00.09, 0306.13.00.12, 0306.13.00.15, 0306.13.00.18, 
0306.13.00.21, 0306.13.00.24, 0306.13.00.27, 0306.13.00.40, 
1605.20.10.10, 1605.20.10.30, and 1605.20.10.40. 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 this investigation is dispositive.

Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we have made certain changes to the margin calculations. 
For a discussion of these changes, see the ``Margin Calculations'' 
section of the Decision Memorandum.

Critical Circumstances

    In our preliminary determination, we found that critical 
circumstances did not exist with respect to imports of the subject 
merchandise from Thailand because the requirements of section 
733(e)(1)(A) of the Act had not been met. See Preliminary 
Determination, 69 FR at 47109-10. For the final determination, we 
continue to find that critical circumstances do not exist for the same 
reasons, in accordance with section 735(a)(3)(A) of the Act.

Verification

    As provided in section 782(i) of the Act, we verified the 
information submitted by the respondents for use in our final 
determination. We used standard verification procedures including 
examination of relevant accounting and production records, and original 
source documents provided by the respondents.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we are 
directing U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all entries of certain frozen and canned 
warmwater shrimp from Thailand that are entered, or withdrawn from 
warehouse, for consumption on or after August 4, 2004, the publication 
date of the preliminary determination in the Federal Register. CBP 
shall continue to require a cash deposit or the posting of a bond based 
on the estimated weighted-average dumping margins shown below. The 
suspension of liquidation instructions will remain in effect until 
further notice.

Final Determination Margins

    The weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                        Weighted-average
              Exporter/manufacturer \4\                margin percentage
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Andaman Seafood Co., Ltd.............................               5.79
Chanthaburi Seafoods Co., Ltd........................               5.79
Chanthaburi Frozen Food Co., Ltd.....................               5.79
Phattana Seafood Co., Ltd............................               5.79
Thai I-Mei Frozen Foods Co., Ltd.....................               6.20
Thailand Fishery Cold Storage Public Co., Ltd........               5.79
Thai International Seafood Co., Ltd..................               5.79
The Union Frozen Products Co., Ltd...................               6.82
Wales & Company Universe, Ltd........................               5.79
Y2K Frozen Food Co., Ltd.............................               5.79
All Others...........................................               6.03
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    In accordance with section 735(c)(5)(A) of the Act, we have based 
the ``all others'' rate on the weighted average of the dumping margins 
calculated for the exporters/manufacturers investigated in this 
proceeding.
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    \4\ The following companies are part of the Rubicon Group and 
thus have been assigned the same dumping margin: Andaman Seafood 
Co., Ltd., Chanthaburi Frozen Food Co., Ltd., Chanthaburi Seafoods 
Co., Ltd., Phattana Seafood Co., Ltd., Thailand Fishery Cold Storage 
Public Co., Ltd., Thai International Seafood Co., Ltd., Wales & 
Company Universe, Ltd., and Y2K Frozen Food Co., Ltd.
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ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (ITC) of our determination. As our final 
determination is affirmative, the ITC will determine within 45 days 
whether these imports are causing material injury, or threat of 
material injury, to an industry in the United States. If the ITC 
determines that material injury or threat of 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, the Department will issue an antidumping duty order directing 
CBP officials to assess antidumping duties on all imports of the 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation.
    This notice serves as the only reminder to parties subject to 
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 return/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 sanctionable violation.
    We are issuing and publishing this determination and notice in 
accordance with sections 735(d) and 777(i) of the Act.

    Dated: December 17, 2004.
James Jochum,
Assistant Secretary for Import Administration.

Appendix--Issues in the Decision Memo

Comments

1. Offsets for Non-Dumped Sales
2. Revenue from the Thai Government Duty Compensation Program
3. Ministerial Errors in the Preliminary Determination
4. Exclusion of Broken Shrimp from the Margin Calculations
5. Whether to Grant a Constructed Export Price (CEP) Offset for the 
Rubicon Group
6. Allocation of Indirect Selling Expenses for the Rubicon Group
7. Treatment of Transportation Expenses for the Rubicon Group
8. Double Counting in the Calculation of Financial Ratios for the 
Rubicon Group
9. Verification Corrections for the Rubicon Group
10. Date-of-Sale Methodology for Thai I-Mei
11. Count Sizes for Thai I-Mei
12. Appropriate Denominator to Use for General and Administrative 
(G&A) and Interest Calculations for Thai I-Mei
13. Adverse Facts Available (AFA) Cost Adjustments for Thai I-Mei
14. Calculation of Constructed Value (CV) Profit for Thai I-Mei
15. Adjustment to Cost Offset Reported for UFP

[FR Doc. 04-28171 Filed 12-21-04; 8:45 am]
BILLING CODE 3510-DS-P