[Federal Register Volume 72, Number 84 (Wednesday, May 2, 2007)]
[Notices]
[Pages 24273-24275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-8386]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-893]


Certain Frozen Warmwater Shrimp from the People's Republic of 
China: Notice of Initiation and Preliminary Results of Changed 
Circumstances Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (``Department'') has received 
information sufficient to warrant initiation of a changed circumstances 
review of the antidumping duty order on certain frozen warmwater shrimp 
from the People's Republic of China (``PRC''). Based on a request filed 
by Yelin Enterprise Co. Hong Kong (``Yelin''), the Department is 
initiating a changed circumstances review to determine whether Hilltop 
International (``Hilltop'') is the successor-in-interest to Yelin, a 
respondent in the original investigation and first administrative 
review.

EFFECTIVE DATE: May 2, 2007.

FOR FURTHER INFORMATION CONTACT: Erin Begnal or Christopher Riker, AD/
CVD Operations, Office 9, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue, 
NW., Washington, DC 20230; telephone: 202-482-1442 or 202-482-3441, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    The antidumping duty order for certain frozen warmwater shrimp from 
the PRC was published on February 1, 2005. See Notice of Amended Final 
Determination of Sales at Less Than Fair Value and Antidumping Duty 
Order: Certain Frozen Warmwater Shrimp From the People's Republic of 
China, 70 FR 5149 (February 1, 2005) (``PRC Shrimp Order''). As part of 
the antidumping duty order on certain frozen warmwater shrimp from the 
PRC, Yelin received a separate rate of 82.27 percent. Id. at 70 FR at 
5151. Moreover, as part of the preliminary results of the first 
administrative review, Yelin preliminarily received a separate rate of 
0.00 percent. See Certain Frozen Warmwater Shrimp From the People's 
Republic of China: Preliminary Results and Partial Rescission of the 
2004/2006 Administrative Review and Preliminary Intent To Rescind 2004/
2006 New Shipper Review, 72 FR 10645 (March 9, 2007).
    On March 16, 2007, Yelin filed a submission requesting that the 
Department conduct a changed circumstances review of the antidumping 
duty order on certain frozen warmwater shrimp from the PRC to confirm 
that Hilltop is the successor-in-interest to Yelin.\1\ In its 
submission, Yelin provided information on the events leading to the 
transition from Yelin to Hilltop. Yelin also provided documentation 
relating to the change in name to Hilltop and documentation relating to 
the share transfer from Yelin to its partners to Hilltop, to carry on 
the business of Yelin. In addition, Yelin provided documentation 
relating to the ownership structure and management, organizational 
structure, customer base, accounting processes, supplier relationships, 
products, and pricing. As part of its March 16, 2007, submission, Yelin 
requested that the Department conduct an expedited review.
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    \1\ See Letter from Yelin, to the Department, regarding Request 
for Expedited Changed Circumstances Determination, Certain Frozen 
and Canned Warmwater Shrimp from China (Case No. A-570-848) (March 
16, 2007) (``Yelin's CCR Request'').
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Scope of Order

    The scope of this 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,\2\ deveined or not deveined, cooked or raw, or 
otherwise processed in frozen form.
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    \2\ ``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 this investigation, regardless of definitions in the 
Harmonized Tariff Schedule of the United States (``HTS''), 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

[[Page 24274]]

(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 (HTS 
subheading 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 (HTS subheadings 0306.23.00.20 and 0306.23.00.40); (4) 
shrimp and prawns in prepared meals (HTS subheading 1605.20.05.10); (5) 
dried shrimp and prawns; (6) Lee Kum Kee's shrimp sauce; (7) canned 
warmwater shrimp and prawns (HTS subheading 1605.20.10.40); (8) certain 
dusted shrimp; and (9) 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 individually quick frozen (``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 HTS 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, and 1605.20.10.30. These HTS 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.

Initiation of Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(``Act''), the Department will conduct a changed circumstances review 
upon receipt of information concerning, or a request from an interested 
party for a review of, an antidumping duty order, which shows changed 
circumstances sufficient to warrant a review of the order. 
Additionally, section 751(b)(4) of the Act states that the Department 
shall not conduct a review less than 24 months after the date of 
publication of the determination, in the absence of good cause. As 
noted above, Yelin and Hilltop filed their request for a changed 
circumstances review on March 16, 2007, a little over 24 months after 
the publication of the amended final determination and order. See PRC 
Shrimp Order.
    In a changed circumstances review involving 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. See Certain Cut-to-Length Carbon Steel Plate from Romania: 
Initiation and Preliminary Results of Changed Circumstances Antidumping 
Duty Administrative Review, 70 FR 22847 (May 3, 2005). 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 are essentially the same 
as those of the predecessor company. See, e.g., Notice of Initiation of 
Antidumping Duty Changed Circumstances Review: Certain Forged Stainless 
Steel Flanges from India, 71 FR 327 (January 4, 2006). 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. 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).
    Based on the information provided in its submission, Yelin has 
provided sufficient evidence to warrant a review to determine if 
Hilltop is the successor-in-interest to Yelin. Therefore, pursuant to 
section 751(b)(1) of the Act and 19 CFR 351.216(b), we are initiating a 
changed circumstances review.

Preliminary Results of the Review

    Pursuant to section 751(b) of the Act, and 19 CFR 351.216, we will 
conduct a changed circumstances review upon receipt of information 
concerning, or a request from an interested party for a review of, an 
antidumping duty finding or order that shows changed circumstances 
sufficient to warrant a review of the order. The information submitted 
by Yelin stating the change in ownership and change in the respondent 
entity's legal name demonstrates changed circumstances sufficient to 
warrant a review. See 19 CFR 351.216(d).
    As noted above in the ``Background'' section of this notice, in its 
request for a changed circumstances review, Yelin stated that it 
underwent a change in ownership. Yelin was renamed Hilltop 
International, and subsequent to the name change, the share capital of 
Yelin was transferred to its two original partners, and reinvested in 
Hilltop by one original and one new shareholder. The company conducted 
business under both names of Yelin and Hilltop, until July 2006, 
although Yelin was not formally dissolved until December 2006.
    In determining whether one company is the successor-in-interest to 
another for purposes of applying the antidumping duty law, the 
Department examines several factors including, but not limited to, 
changes in: (1) Management; (2) production facilities; (3) supplier 
relationships; and (4) customer base. See, e.g., Notice of Final 
Results of Changed Circumstances Antidumping Duty Administrative 
Review: Polychloroprene Rubber From Japan, 67 FR 58 (January 2, 2002) 
(``Polychloroprene Rubber from Japan'') (citing Brass Sheet and Strip 
from Canada: Final Results of Antidumping Duty Administrative Review, 
57 FR 20460, 20462 (May 13, 1992) (``Canadian Brass'')).\3\ While no 
single factor or combination of factors will necessarily provide a 
dispositive indication, the Department will generally consider the new 
company to

[[Page 24275]]

be the successor-in-interest to the previous company if the resulting 
operation with regard to the subject merchandise is not materially 
dissimilar to that of its predecessor. See, e.g., Industrial Phosphoric 
Acid from Israel; Final Results of Antidumping Duty Changed 
Circumstances Review, 59 FR 6944, 6945 (February 14, 1994); and Notice 
of Final Determination of Sales at Less Than Fair Value and Affirmative 
Final Determination of Critical Circumstances: Certain Orange Juice 
from Brazil, 71 FR 2183 (January 13, 2006) and accompanying Issues and 
Decision Memorandum, at Comment 3. Thus, if the evidence demonstrates 
that, with respect to the production and sale of the subject 
merchandise, the new company operates as the same business entity as 
the former company, the Department will accord the new company the same 
antidumping duty treatment as its predecessor.
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    \3\ ``Generally, in the case of an asset acquisition, the 
Department will consider the acquiring company to be a successor to 
the company covered by the antidumping duty order, and thus subject 
to its duty deposit rate, if the resulting operation is essentially 
similar to that existing before the acquisition.'' See Canadian 
Brass, 57 FR at 20461.
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    Beginning with management, Yelin reported that there has been no 
change in the company's management or management structure after 
becoming Hilltop. See Yelin's CCR Request at 5 and Exhibit 4. We find 
that the management structure has remained unchanged.
    Second, we looked at the operational structure of Hilltop. Yelin 
explained that there have been no material changes to its operations or 
the way it sells subject merchandise. Additionally, Yelin provided a 
sales documentation flowchart and a flow of goods/payment chart, which 
demonstrates how products are ordered and sold, and stated that these 
processes are identical between Yelin and Hilltop. See Yelin's CCR 
Request at 6 and Exhibit 5. We find that Yelin's operational structure 
has not changed as a result of becoming Hilltop.
    Third, we reviewed the supplier relationships of Yelin and Hilltop. 
Yelin stated that the two affiliated producers, Yangjiang City Hoitat 
Quick-Frozen Seafood Co., Ltd. and Fuqing Yihua Aquatic Food Co., Ltd., 
which supplied Yelin with all subject merchandise, continue to supply 
Hilltop with the subject merchandise, and have done so since the 
publication of the antidumping duty order. Yelin noted that there have 
also been no substantial changes to either producer's product lines, 
production output, or capacity. See Yelin's CCR Request at 7. For non-
subject merchandise that is sold by Yelin and Hilltop, Yelin states 
that there have been no changes in the list of unaffiliated suppliers.
    Fourth, we reviewed the customer base of both Yelin and Hilltop. 
Yelin explained that Yelin and subsequently, Hilltop, has only one 
customer, Ocean Duke, which is invoiced through Taiwanese affiliates. 
See Yelin's CCR Request at 7 and Exhibit 5.
    In summary, Yelin reported that its conversion from Yelin to 
Hilltop did not meaningfully affect the supplier relationships, 
customer base, management, marketing or sale of products and services. 
Moreover, there have been no material changes to Yelin's operations or 
the way it produces and sells subject merchandise resulting in the 
conversion from Yelin to Hilltop.
    Based on Yelin's evidence of the change in ownership and absent any 
other record evidence that would contradict Yelin's statements, we 
preliminarily determine that Hilltop should receive the same 
antidumping duty treatment with respect to certain frozen warmwater 
shrimp from the PRC as Yelin. If the above preliminary results are 
affirmed in the Department's final results, the cash deposit rate most 
recently calculated for Yelin will apply to all entries of subject 
merchandise by Hilltop, entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of the final results of 
this changed circumstances review. See, e.g., Granular 
Polytetrafluoroethylene Resin from Italy; Final Results of Changed 
Circumstances Review, 68 FR 25327 (May 12, 2003). This cash deposit 
rate, if imposed, shall remain in effect until further notice.

Public Comment

    Any interested party may request a hearing within 30 days of 
publication of this notice in accordance with 19 CFR 351.310(c). 
Interested parties may submit case briefs no later than 30 days after 
the date of publication of this notice, in accordance with 19 CFR 
351.309(c)(1)(ii). Rebuttal briefs, which must be limited to issues 
raised in the case briefs, may be filed no later than 5 days after the 
case briefs, in accordance with 19 CFR 351.309(d)(1). Any hearing, if 
requested, will normally be held two days after rebuttal briefs are 
due, in accordance with 19 CFR 351.310(d)(1).
    The Department will issue its final results of review within 270 
days after the date on which the changed circumstances review is 
initiated, or within 45 days if all parties to the proceeding agree to 
the outcome of the review, in accordance with 19 CFR 351.216(e), and 
will publish these results in the Federal Register.
    The current requirement for a cash deposit of estimated antidumping 
duties on all subject merchandise will continue unless and until it is 
modified pursuant to the final results of this changed circumstances 
review.
    This notice is published in accordance with sections 751(b)(1) and 
777(i) of the Act and 19 CFR 351.216 of the Department's regulations.

    Dated: April 25, 2007.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E7-8386 Filed 5-1-07; 8:45 am]
BILLING CODE 3510-DS-S