[Federal Register Volume 79, Number 245 (Monday, December 22, 2014)]
[Notices]
[Pages 76304-76305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-29922]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-831]


Fresh Garlic From the People's Republic of China: Initiation of 
Changed Circumstances Review of Jining Yongjia Trade Co., Ltd. and 
Jinxiang County Shanfu Frozen Co., Ltd.

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) has received 
information sufficient to warrant initiation of a changed circumstances 
review of the antidumping duty order on fresh garlic from the People's 
Republic of China (PRC). Based upon a request filed by Jining Yongjia 
Trade Co., Ltd. (Yongjia), an exporter of fresh garlic to the United 
States, the Department is initiating a changed circumstances review to 
determine whether Yongjia's supplier, Jinxiang County Shanfu Frozen 
Co., Ltd. (Shanfu II), is the successor-in-interest of the producer/
supplier of Yongjia with the same name, Shanfu (Shanfu I), examined in 
Yongjia's new shipper review of this order.\1\
---------------------------------------------------------------------------

    \1\ See Antidumping Duty Order: Fresh Garlic From the People's 
Republic of China, 59 FR 59209 (November 16, 1994) (Order). See also 
Fresh Garlic From the People's Republic of China: Final Results and 
Rescission, In Part, of Twelfth New Shipper Reviews, 73 FR 56550 
(September 29, 2008).

---------------------------------------------------------------------------
DATES: Effective Date: December 22, 2014.

FOR FURTHER INFORMATION CONTACT: Hilary E. Sadler, Esq., at (202) 482-
4340 or Mark Hoadley at (202) 482-3148, AD/CVD Operations, Office VII, 
Enforcement & Compliance, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On November 16, 1994, the Department published notice of the Order 
in the Federal Register.\2\ On October 8, 2014, Yongjia requested that 
the Department conduct a changed circumstances review pursuant to 
section 751(b)(1) of the Tariff Act of 1930, as amended (the Act), 19 
CFR 351.216 and 19 CFR 351.221(c)(3), to determine that its supplier, 
Shanfu II, is the successor-in-interest to the supplier of the same 
name which the Department examined in Yongjia's new shipper review for 
purposes of this antidumping duty order. In its request, Yongjia stated 
that changes in ownership in Shanfu I had taken place, and provided 
business licenses before and after the change in ownership, a tax 
payment notice, a marriage license, and information on the company's 
ownership and customers before and after the ownership change. On 
November 5, 2014, the petitioners \3\ submitted comments opposing this 
initiation.
---------------------------------------------------------------------------

    \2\ See id.
    \3\ The petitioners are the Fresh Garlic Producers Association 
and its individual members: Christopher Ranch L.L.C., The Garlic 
Company, Valley Garlic, and Vessey and Company, Inc.
---------------------------------------------------------------------------

Scope of the Order

    The products covered by the order are all grades of garlic, whole 
or separated into constituent cloves, whether or not peeled, fresh, 
chilled, frozen, water or other neutral substance, but not prepared or 
preserved by the addition of other ingredients or heat processing. The 
differences between grades are based on color, size, sheathing, and 
level of decay. The scope of the order does not include the following: 
(a) Garlic that has been mechanically harvested and that is primarily, 
but not exclusively, destined for non-fresh use; or (b) garlic that has 
been specially prepared and cultivated prior to planting and then 
harvested and otherwise prepared for use as seed. The subject 
merchandise is used principally as a food product and for seasoning. 
The subject garlic is currently classifiable under subheadings: 
0703.20.0000, 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, and 2005.99.9700, of the Harmonized Tariff Schedule of 
the United States (HTSUS).
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, our written description of the scope of the order is 
dispositive. In order to be excluded from the order, garlic entered 
under the HTSUS subheadings listed above that is (1) mechanically 
harvested and primarily, but not exclusively, destined for non-fresh 
use or (2) specially prepared and cultivated prior to planting and then 
harvested and otherwise prepared for use as seed must be accompanied by 
declarations to U.S. Customs and Border Protection to that effect.

Initiation of Changed Circumstances Review

    Pursuant to section 751(b)(1) of the 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. In accordance with 19 CFR 351.216(d), 
the Department has determined that the information submitted by Yongjia 
constitutes sufficient evidence to conduct a changed circumstances 
review of the 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.\4\ 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.\5\ 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.\6\
---------------------------------------------------------------------------

    \4\ See, e.g., Certain Activated Carbon From the People's 
Republic of China: Notice of Initiation of Changed Circumstances 
Review, 74 FR 19934, 19935 (April 30, 2009).
    \5\ 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).
    \6\ 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).

---------------------------------------------------------------------------

[[Page 76305]]

    Based on the information provided in its submission, Yongjia has 
provided sufficient evidence to warrant a review to determine if Shanfu 
II is the successor-in-interest to Shanfu I in the new shipper review. 
Therefore, pursuant to section 751(b)(1) of the Act and 19 CFR 
351.216(d), we are initiating a changed circumstances review.
    We are also initiating a changed circumstances review of Yongjia as 
well as on Shanfu II. Yongjia requested a changed circumstances review 
of Shanfu II so that it may continue to receive the chain-rate 
determined in its new shipper review. Normally, a company requests a 
changed circumstances review for itself. In a successor-in-interest 
changed circumstances review, we are determining whether a prior 
calculated rate should apply to an entity under review. Here, the rate 
is a chain-rate that applied to both Yongjia and Shanfu. To determine 
whether this rate should continue to apply to both Yongjia and Shanfu, 
we are initiating a review of both companies. Moreover, the statute 
authorizes us to initiate a changed circumstances review when we 
determine changed circumstances are sufficient to warrant a review.\7\ 
Here, changed circumstances related to both Shanfu and Yongjia exist, 
warranting a review of both companies. First, Yongjia stated that a 
change in ownership of Shanfu I raises the issue of affiliation between 
Yongjia and Shanfu II. Second, Yongjia requests that we conduct a 
collapsing analysis, to determine whether the Department should 
collapse Yongjia and Shanfu II based on the change in ownership, and 
treat the companies as a single entity for purposes of calculating 
antidumping duty rates. For these reasons, we are initiating a changed 
circumstances review of both parties to determine not only whether 
Shanfu II is the successor-in-interest to Shanfu I but also to 
determine whether the chain-rate is still applicable, or whether the 
changed circumstances warrant the application of the PRC-wide rate to 
Shanfu's and Yongjia's shipments instead.
---------------------------------------------------------------------------

    \7\ See section 751(b)(1) of the Act. See also 19 CFR 351.216.
---------------------------------------------------------------------------

    Additionally, the Department finds it is necessary to issue a 
questionnaire requesting additional information for this review, as 
provided for by 19 CFR 351.221(b)(2). For this reason, the Department 
is not conducting this review on an expedited basis by publishing 
preliminary results in conjunction with this notice of initiation. The 
Department will publish in the Federal Register a notice of the 
preliminary results of the changed circumstances review in accordance 
with 19 CFR 351.221(b)(4) and 19 CFR 351.221(c)(3)(i). That notice will 
set forth the factual and legal conclusions upon which our preliminary 
results are based and a description of any action proposed.
    Pursuant to 19 CFR 351.221(b)(4)(ii), interested parties will have 
an opportunity to comment on the preliminary results of review. In 
accordance with 19 CFR 351.216(e), the Department intends to issue the 
final results of its antidumping duty changed circumstances review not 
later than 270 days after the date on which the review is initiated.
    During the course of this changed circumstances review, we will not 
change the cash deposit requirements for the merchandise subject to 
review. The cash deposit will only be altered, if warranted, pursuant 
to the final results of this review.
    This notice is published in accordance with sections 751(b)(l) and 
777(i)(l) of the Act and 19 CFR 351.216(b) and 351.221(b)(1).

    Dated: December 16, 2014.
Christian Marsh,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.
[FR Doc. 2014-29922 Filed 12-19-14; 8:45 am]
BILLING CODE 3510-DS-P