[Federal Register Volume 83, Number 116 (Friday, June 15, 2018)]
[Notices]
[Pages 27949-27952]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12898]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-831]


Fresh Garlic From the People's Republic of China: Final Results 
and Partial Rescission of the 22nd Antidumping Duty Administrative 
Review and Final Result and Rescission, in Part, of the New Shipper 
Reviews; 2015-2016

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) published the 
Preliminary Results of the 22nd administrative review and two 
concurrent new shipper reviews of the antidumping duty order on fresh 
garlic from the People's Republic of China (China) on December 7, 2017. 
The period of review (POR) is November 1, 2015, through October 31, 
2016. We made no changes to the margin calculated for mandatory 
respondent Shandong Jinxiang Zhengyang Import & Export Co., Ltd. 
(Zhengyang), or for new shipper respondent Zhengzhou Yudi Shengjin 
Agricultural Trade Co., Ltd. (Yudi), and continue to find that they 
made sales below normal value. In addition, we are rescinding the new 
shipper review with respect to Qingdao Joinseafoods Co., Ltd. and Join 
Food Ingredient Inc.'s (collectively, Join).

DATES: Applicable June 15, 2018.

FOR FURTHER INFORMATION CONTACT: Kathryn Wallace or Alexander Cipolla, 
AD/CVD Operations, Office VII, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone 202-482-6251 or 
202-482-4956, respectively.

SUPPLEMENTARY INFORMATION: The mandatory respondents in this 
administrative review are: Zhengzhou

[[Page 27950]]

Harmoni Spice Co., Ltd. (Harmoni), and Zhengyang. The new shipper 
review (NSR) respondents are Join and Yudi. Commerce published the 
Preliminary Results on December 7, 2017, in which it preliminarily 
determined that Zhengyang, Join, and Yudi sold merchandise to the 
United States at less than normal value.\1\ We also preliminarily 
granted a separate rate to six companies which demonstrated their 
eligibility for separate rate status, but were not selected for 
individual examination.\2\ We preliminarily rescinded the review with 
respect to the seven companies, including Harmoni, for which a valid 
review request did not exist.\3\ In accordance with 19 CFR 351.309, we 
invited parties to comment on our Preliminary Results. The 
petitioners,\4\ the CFTG,\5\ Zhengyang, Join, and Yudi timely filed 
case briefs, pursuant to our regulations.\6\ Additionally, the 
petitioners, Join, and Harmoni timely filed rebuttal briefs.\7\ The 
deadline for the final results of this review was originally April 9, 
2018. On March 14, 2018, Commerce extended the deadline in this 
proceeding by 60 days to June 8, 2018.\8\
---------------------------------------------------------------------------

    \1\ See Fresh Garlic from the People's Republic of China: 
Preliminary Results, Preliminary Rescission, and Final Rescission, 
in Part, of the 22nd Antidumping Duty Administrative Review and 
Preliminary Results of the New Shipper Reviews; 2015-2016, 82 FR 
57718 (December 7, 2017) (Preliminary Results) and accompanying 
Issues and Decision Memorandum (PDM).
    \2\ Id.
    \3\ Id.
    \4\ The petitioners are the Fresh Garlic Producers Association 
(FGPA) and its individual members: Christopher Ranch LLC, The Garlic 
Company, Valley Garlic, and Vessey and Company, Inc.
    \5\ The CFTG, at the time of initiation, consisted of Mr. Avrum 
Katz of Boxcar Farm, Mr. Stanley Crawford of El Bosque Farm, Ms. 
Susanne Sanford of Sanford Farm, and Mr. Alex Pino of Revolution 
Farm.
    \6\ See CFTG's Letter, ``Case Brief: Filed on Behalf of the 
Coalition for Fair Trade in Garlic in the 22nd Administrative Review 
of Fresh Garlic from China,'' dated April 25, 2018 (CFTG's Case 
Brief); see also Zhengyang's Letter, ``Fresh Garlic from the 
People's Republic of China--Case Brief,'' dated April 25, 2018. 
(Commerce rejected Zhengyang's Case Brief for containing unsolicited 
new factual information. see Commerce's Letter, ``22nd Antidumping 
Duty Administrative Review of Fresh Garlic from the People's 
Republic of China: Request for Removal of Untimely New Factual 
Information'' dated May 15, 2018. Memorandum); see also Yudi's 
Letter, ``Case Brief'' dated April 25, 2018 (Yudi's Case Brief); see 
also Join's Letter, ``Case Brief'' dated April 25, 2018 (Join's Case 
Brief); see also the Petitioners' Letter, ``Petitioners' Case 
Brief'' dated April 25, 2018 (Petitioners' NSR Case Brief).
    \7\ See the Petitioners' Letter, ``Petitioners' Rebuttal 
Brief,'' dated May 2, 2018 (Petitioners' NSR Rebuttal Brief); see 
also Join's Letter, ``Rebuttal Case Brief'' dated May 2, 2018 
(Join's Rebuttal Brief); see also the Petitioners' Letter, ``Fresh 
Garlic from the People's Republic of China: Petitioners' Rebuttal 
Brief,'' dated May 2, 2018 (the Petitioners' Rebuttal Brief); see 
also Harmoni's Letter, ``Harmoni Administrative Review Reply Brief: 
22nd Administrative Review of the Antidumping Duty Order on Fresh 
Garlic from the People's Republic of China (A-570-831),'' dated May 
2, 2018 (Harmoni's Rebuttal Brief).
    \8\ See Memorandum, ``Fresh Garlic from the People's Republic of 
China--22nd Administrative Review (2015-2016): extension of Deadline 
for the Final Results of the Review,'' dated March 15, 2017.
---------------------------------------------------------------------------

    Based upon our analysis of the comments and information received, 
Commerce continues to find that the review request made by the 
Coalition for Fair Trade in Garlic (the CFTG) was not valid, and 
accordingly have rescinded the review with respect to seven companies, 
including the other mandatory respondent Harmoni, for which a valid 
review request does not exist. As discussed below, Commerce finds that 
Join withheld requested information, significantly impeded the new 
shipper review, and did not cooperate to the best of its ability. 
Accordingly, pursuant to sections 776(a) and (b) of the Tariff Act of 
1930, as amended (the Act), we have used an adverse inference in 
selecting from among the facts otherwise available, and have found 
Join's sale not bona fide, and have rescinded the review of Join.

Scope of the Order

    The merchandise covered by the order includes all grades of garlic, 
whole or separated into constituent cloves. Fresh garlic that are 
subject to the order are currently classified under the Harmonized 
Tariff Schedule of the United States (HTSUS) 0703.20.0000, 
0703.20.0005, 0703.20.0010, 0703.20.0015, 0703.20.0020, 0703.20.0090, 
0710.80.7060, 0710.80.9750, 0711.90.6000, 0711.90.6500, 2005.90.9500, 
2005.90.9700, 2005.99.9700. Although the HTSUS numbers are provided for 
convenience and customs purposes, the written product description 
remains dispositive. For a full description of the scope of this order, 
please see ``Scope of the Order'' in the accompanying Issues and 
Decision Memorandum.\9\
---------------------------------------------------------------------------

    \9\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results and Final Rescission of the Antidumping Duty 
Administrative Review and New Shipper Reviews: Fresh Garlic from the 
People's Republic of China; 2014-2015,'' dated concurrently with 
this notice (IDM).
---------------------------------------------------------------------------

Partial Rescission of Administrative Review

    As discussed in the IDM,\10\ Commerce is rescinding the review with 
respect to seven companies, including mandatory respondent Harmoni, 
based on Commerce's determination that the CFTG's request for review 
was not valid. See Appendix IV for the companies for which 
administrative reviews have been rescinded in these final results.
---------------------------------------------------------------------------

    \10\ See IDM at 6, 24.
---------------------------------------------------------------------------

Analysis of Comments Received

    We addressed all issues raised in the case and rebuttal briefs by 
parties in this review in the IDM. Appendix I provides a list of the 
issues which parties raised. The IDM is a public document and is on 
file in the Central Records Unit (CRU), Room B8024 of the main 
Department of Commerce building, as well as 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 in the CRU. In 
addition, a complete version of the IDM can be accessed directly on the 
internet at http://enforcement.trade.gov/frn/index.html. The signed IDM 
and the electronic versions of the IDM are identical in content.

Changes Since the Preliminary Results

    Based on a review of the record and comments received from 
interested parties regarding our Preliminary Results, and for the 
reasons explained in the IDM, including the application of facts 
available with an adverse inference, we revised our decision regarding 
Join's cooperation and have rescinded the new shipper review, as 
discussed below. Further, we have determined that the QTF-Entity is 
eligible for a separate rate.

Rescission of New Shipper Review

    As discussed in the IDM, Commerce has analyzed the bona fides of 
Join's single sale and found that it was not a bona fide sale, and thus 
not reviewable pursuant to section 751(a)(2)(B)(iv) of the Act.\11\ 
Commerce reached this conclusion based on its consideration of the 
totality of circumstances, including: The timing of the payment, the 
parties' implementation of the terms of sale, incomplete information 
concerning the affiliates involved with the sale, missing or 
underreported expenses related to the sale, and the single sale. For a 
complete discussion see the IDM at 10-15, and Comment 5.
---------------------------------------------------------------------------

    \11\ See IDM at 10-15, and Comment 5.
---------------------------------------------------------------------------

    For the foregoing reasons, Commerce finds that Join's sale is not 
bona fide, and that the sale does not provide a reasonable or reliable 
basis for calculating a dumping margin. Accordingly, Commerce is 
rescinding the NSR with respect to Join.

Final Determination of No Shipments

    In the Preliminary Results, Commerce preliminarily determined that 
the

[[Page 27951]]

companies listed in Appendix III timely filed ``no shipment'' 
certifications and did not have any reviewable transactions during the 
POR. Consistent with Commerce's assessment practice in non-market 
economy (NME) cases, we completed the review with respect to the 
companies listed in Appendix III. For the companies listed in Appendix 
III, CBP provided no evidence to contradict the claims of these 
companies of no shipments.
    As noted in the ``Assessment Rates'' section below, Commerce 
intends to issue appropriate instructions to CBP for the companies 
listed below based on the final results of this review.

PRC-Wide Entity

    As discussed in the Preliminary Results, Commerce's policy 
regarding conditional review of the PRC-wide entity applies to this 
administrative review.\12\ Under this policy, the PRC-wide entity will 
not be under review unless a party specifically requests, or Commerce 
self-initiates, a review of the entity. Because no party requested a 
review of the PRC-wide entity, the entity is not under review and the 
entity's rate (i.e., $4.71/kg) is not subject to change. Aside from the 
no shipment companies discussed below, Commerce considers all other 
companies for which a review was requested, and which did not qualify 
for a separate rate, to be part of the PRC-wide entity. See Appendix 
II.
---------------------------------------------------------------------------

    \12\ See Antidumping Proceedings: Announcement of Change in 
Department Practice for Respondent Selection in Antidumping Duty 
Proceedings and Conditional Review of the Nonmarket Economy Entity 
in NME Antidumping Duty Proceedings, 78 FR 65963 (November 4, 2013).
---------------------------------------------------------------------------

Separate Rates

    In the Preliminary Results, Commerce found that non-selected 
companies Jining Shunchang Import & Export Co., Ltd., Jinxiang Feiteng 
Import & Export Co., Ltd., Qingdao Sea-Line International Trading Co., 
Ltd., Shenzhenn Bainon Co., Ltd., Shenzhen Xinboda Industrial Co., 
Ltd., and Weifang Hongqiao International Logistics Co., Ltd., 
demonstrated their eligibility for a separate rate. We continue to find 
that those six companies are eligible for a separate rate.\13\ As 
discussed in the IDM, Commerce granted the QTF-Entity separate status 
in these final results.\14\
---------------------------------------------------------------------------

    \13\ See Preliminary Results at Appendix II.
    \14\ See IDM at 7-8.
---------------------------------------------------------------------------

    In the Preliminary Results, we assigned the non-selected separate 
rate companies the dumping margin calculated for Zhengyang. No parties 
commented on this. We continue to use Zhengyang's margin as the margin 
for the non-selected separate rate companies in these final results.

Final Results of Administrative Review

    The weighted-average dumping margins for the administrative review 
are as follows:
---------------------------------------------------------------------------

    \15\ The QTF-Entity includes: Qingdao Tiantaixing Foods Co., 
Ltd.; Qingdao Tianhefeng Foods Co., Ltd.; Qingdao Beixing Trading 
Co., Ltd.; Qingdao Lianghe International Trade Co., Ltd.; Qingdao 
Xintianfeng Foods Co., Ltd.; Hebei Golden Bird Trading Co., Ltd.; 
and Huamei Consulting; see Fresh Garlic from the People's Republic 
of China: Final Results and Partial Rescission of the 21st 
Antidumping Duty Administrative Review; 2014-2015, 82 FR 27230 (June 
14, 2017), and accompanying Issues and Decision Memorandum at 
Comment 4.

------------------------------------------------------------------------
                                                             Weighted-
                                                          average margin
                        Exporter                           (dollars per
                                                             kilogram)
------------------------------------------------------------------------
Shandong Jinxiang Zhengyang Import & Export Co., Ltd....           $2.69
Jining Shunchang Import & Export Co., Ltd...............            2.69
Jinxiang Feiteng Import & Export Co., Ltd...............            2.69
Qingdao Sea-Line International Trading Co., Ltd.........            2.69
QTF-Entity \15\.........................................            2.69
Shenzhen Bainong Co., Ltd...............................            2.69
Shenzhen Xinboda Industrial Co., Ltd....................            2.69
Weifang Hongqiao International Logistics Co., Ltd.......            2.69
------------------------------------------------------------------------

Final Results of New Shipper Review

    The weighted-average dumping margin for the new shipper review:

------------------------------------------------------------------------
                                                             Weighted-
                                                          average margin
                        Exporter                           (dollars per
                                                             kilogram)
------------------------------------------------------------------------
Zhengzhou Yudi Shengjin Agricultural Trade Co., Ltd.....           $3.19
------------------------------------------------------------------------

Assessment Rates

    Pursuant to section 751(a)(2)(A) and (C) of the Act, and 19 CFR 
351.212(b), Commerce has determined, and U.S. Customs and Border 
Protection (CBP) shall assess, antidumping duties on all appropriate 
entries of subject merchandise in accordance with the final results of 
these reviews. We intend to issue appropriate assessment instructions 
directly to CBP 15 days after publication of the final results of this 
administrative review, and the new shipper reviews.
    Where the respondent reported reliable entered values, we 
calculated importer- (or customer-) specific ad valorem rates by 
aggregating the dumping margins calculated for all U.S. sales to each 
importer (or customer) and dividing this amount by the total entered 
value of the sales to each importer (or customer).\16\ Where we 
calculated a weighted-average dumping margin by dividing the total 
amount of dumping for reviewed sales to that party by the total sales 
quantity associated with those transactions, we will direct CBP to 
assess importer-specific assessment rates based on the resulting

[[Page 27952]]

per-unit rates.\17\ Where an importer- (or customer-) specific ad 
valorem or per-unit rate is greater than de minimis, we will instruct 
CBP to collect the appropriate duties at the time of liquidation.\18\ 
Where an importer- (or customer-) specific ad valorem or per-unit rate 
is zero or de minimis, we will instruct CBP to liquidate appropriate 
entries without regard to antidumping duties.\19\ We intend to instruct 
CBP to liquidate entries containing subject merchandise exported by the 
PRC-wide entity at the PRC-wide rate.
---------------------------------------------------------------------------

    \16\ See 19 CFR 351.212(b)(1).
    \17\ Id.
    \18\ Id.
    \19\ See 19 CFR 351.106(c)(2).
---------------------------------------------------------------------------

    Pursuant to Commerce's assessment practice, for entries that were 
not reported in the U.S. sales databases submitted by companies 
individually examined during this review, we will instruct CBP to 
liquidate such entries at the PRC-wide entity rate. Additionally, if we 
determine that an exporter had no shipments of the subject merchandise, 
any suspended entries that entered under that exporter's case number 
(i.e., at that exporter's rate) will be liquidated at the PRC-wide 
entity rate.\20\
---------------------------------------------------------------------------

    \20\ See Non-Market Economy Antidumping Proceedings: Assessment 
of Antidumping Duties, 76 FR 65694 (October 24, 2011).
---------------------------------------------------------------------------

    As Commerce is rescinding the NSR with respect to Join, we are not 
making a determination as to whether or not Join qualifies for a 
separate rate. Therefore, Join remains part of the PRC-wide entity. The 
PRC-wide entity is not under review in the ongoing administrative 
review. Accordingly, Join's entry will be assessed at the rate equal to 
the cash deposit of estimated antidumping duties required on its 
merchandise at the time of entry, or withdrawal from warehouse, for 
consumption. We intend to issue liquidation instructions for any 
entries during the relevant period made by Join 15 days after 
publication of this notice.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of the subject merchandise 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 the exporter 
listed above, the cash deposit rate will be the rate established in the 
final results of review (except, if the rate is zero or de minimis, 
i.e., less than 0.5 percent, a zero cash deposit rate will be required 
for that company); (2) for previously investigated or reviewed PRC and 
non-PRC exporters not listed above that have separate rates, the cash 
deposit rate will continue to be the exporter-specific rate published 
for the most recent period; (3) for all PRC exporters of subject 
merchandise which have not been found to be entitled to a separate 
rate, the cash deposit rate will be the PRC-wide rate of $4.71 per 
kilogram; and (4) for all non-PRC exporters of subject merchandise 
which have not received their own rate, the cash deposit rate will be 
the rate applicable to the PRC exporters that supplied that non-PRC 
exporter. The deposit requirements shall remain in effect until further 
notice.

Disclosure

    We intend to disclose the calculations performed within five days 
of the date of publication of this notice to parties in this proceeding 
in accordance with 19 CFR 351.224(b).

Notification to Importers

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) 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 Commerce's presumption that reimbursement 
of antidumping duties occurred and the subsequent assessment of doubled 
antidumping duties.

Administrative Protective Orders

    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3), which 
continues to govern business proprietary information in this segment of 
the proceeding. Timely written notification of the return or 
destruction of APO materials, 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 sanction.

Notification to Interested Parties

    We are issuing and publishing these final results of administrative 
review in accordance with sections 751(a)(1) and 777(i) of the Act and 
19 CFR 351.213.

    Dated: June 8, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Issues Discussed in the Issues and Decision Memorandum

Administrative Review

1. Whether Section 751 of the Act Requires Commerce to Conduct an AR 
of Harmoni Following the CFTG's Request for Review
2. Whether the CFTG's Review Request was Valid, and Whether the 
Members of the CFTG are Producers or Wholesalers of a Domestic Like 
Product
3. Whether Harmoni and the FGPA Obstructed or Impaired Legitimate 
Government Activity

New Shipper Reviews

4. Whether Yudi's Sale was Made on a Bona Fide Basis
5. Whether Join's Sale was Made on a Bona Fide Basis
6. Whether Commerce Properly Selected Romania as the Surrogate 
Country

Appendix II

List of Companies Under Review Subject to the PRC-Wide Rate

1. China Union Agri. (Qingdao) Co., Ltd.
2. Juxian Huateng Organic Ginger Co., Ltd.
3. Qingdao Jiashan Trading Co., Ltd.
4. Shandong Helu International Trade Co., Ltd.
5. Weifang Wangyuan Food Co., Ltd.
6. Zhengzhou Yudishengjin Farm Products Co., Ltd.

Appendix III

Companies That Have Certified No Shipments

1. Jinan Farmlady Trading Co., Ltd.
2. Jining Shengtai Fruits & Vegetables Co., Ltd.
3. Jining Yifa Garlic Produce Co., Ltd.
4. Jinxiang Richfar Fruits & Vegetables Co., Ltd.
5. Shijiazhuang Goodman Trading Co., Ltd.

Appendix IV

Companies for Which Administrative Reviews Have Been Rescinded

1. Jinxiang Jinma Fruits Vegetables Products Co., Ltd.
2. Juxian Huateng Food Co., Ltd.
3. Qingdao Hailize (Sea-Line) International Trading Co., Ltd.
4. Qingdao Jiuyihongrun Foods Co., Ltd.
5. Qingdao Ritai Food Co., Ltd.
6. Zhengzhou Harmoni Spice Co., Ltd.
7. Zhonglian Nongchan Co., Ltd.

 [FR Doc. 2018-12898 Filed 6-14-18; 8:45 am]
 BILLING CODE 3510-DS-P