Frozen Concentrated Orange Juice From Brazil; Preliminary Results of Antidumping Duty Administrative Review and Intent To Revoke Order in Part

DEPARTMENT OF COMMERCE

International Trade Administration

[A-351-605]

Frozen Concentrated Orange Juice From Brazil; Preliminary Results

of Antidumping Duty Administrative Review and Intent To Revoke Order in

Part

AGENCY: International Trade Administration, Import Administration,

Department of Commerce.

ACTION: Notice of preliminary results of antidumping duty

administrative review and intent to revoke in part.

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SUMMARY: In response to timely requests for an administrative review by

the respondents, Branco Peres Citrus (Branco Peres), Citropectina,

S.A., and Frutropic, S.A., the Department of Commerce (the Department)

is conducting an administrative review of the antidumping duty order on

frozen concentrated orange juice (FCOJ) from Brazil. The review covers

three manufacturers/exporters of this merchandise to the United States

and the period May 1, 1991 through April 30, 1992. We preliminarily

determine the dumping margins for Branco Peres, Citropectina, and

Frutropic to be zero or de minimis during this period.

The Department intends to revoke the antidumping duty order with

respect to Frutropic because we have reason to believe that Frutropic

has sold the subject merchandise at not less than foreign market value

for a period of at least three consecutive years and is not likely to

sell the subject merchandise at less than foreign market value in the

future. We invite interested parties to comment on these preliminary

results.

EFFECTIVE DATE: February 3, 1994.

FOR FURTHER INFORMATION CONTACT: David Mason or Rick Herring, Office of

Countervailing Compliance, Import Administration, International Trade

Administration, U.S. Department of Commerce, 14th Street and

Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-

2786.

SUPPLEMENTARY INFORMATION:

Background

On May 5, 1987, the Department published in the Federal Register an

antidumping duty order on frozen concentrated orange juice (FCOJ) from

Brazil (52 FR 16426). On May 31, 1992, pursuant to the Department's

notice of ``Opportunity to Request Administrative Review'' (57 FR

19412) of the antidumping duty order on FCOJ from Brazil for the period

May 1, 1991 through April 30, 1992, Branco Peres, Citropectina, and

Frutropic requested an administrative review for this period.

Accordingly, the Department initiated this administrative review on

June 18, 1992 (57 FR 27212).

In addition, Frutropic submitted a timely request for revocation of

the antidumping duty order, accompanied by the certification required

by Sec. 353.25(b)(1) of the Department's regulations. The Department

has now conducted this review in accordance with section 751(a) of the

Tariff Act of 1930, as amended (the Act).

Scope of Review

Imports covered by the administrative review are shipments of

frozen concentrated orange juice (FCOJ) from Brazil. The merchandise is

currently classifiable under item 2009.11.00 of the Harmonized Tariff

Schedule (HTS). The HTS item number is provided for convenience and

Customs purposes. The written description remains dispositive.

The review covers three manufacturers/exporters of the subject

merchandise to the United States for the period May 1, 1991 through

April 31, 1992: Branco Peres, Citropectina, and Frutropic.

United States Price

In calculating the United States price, we used both purchase price

and exporter's sales price (ESP) as defined in section 772 of the

Tariff Act. Purchase price was used for those sales to the United

States which were made prior to importation, while ESP was used for

those sales which were made after importation.

Purchase price was based on the packed f.o.b. price to unrelated

purchasers in the United States. For purchase price sales, where

applicable, we made deductions for foreign inland freight, Brazilian

port charges, export taxes, commissions, packing, and credit expenses.

ESP was based on the packed delivered price to the first unrelated

purchaser in the United States. For ESP sales, we made deductions for

brokerage and handling expenses, foreign inland freight, ocean freight

and marine insurance, U.S. duty, U.S. Customs' fees and harbor

maintenance fees, U.S. inland freight and insurance, packing,

commissions, discounts, rebates, credit expenses and indirect selling

expenses. No other adjustments were claimed or allowed.

Foreign Market Value

In calculating foreign market value (FMV), the Department based FMV

on third country f.o.b. prices for all respondents, in accordance with

section 773 of the Act. We made deductions, where appropriate, for

foreign inland freight, marine insurance, foreign and brokerage and

handling, and export taxes. Where applicable, we deducted foreign

packing expenses and added U.S. packing to third country price (packing

costs were not incurred on bulk sales). We adjusted FMV, where

applicable, for differences in credit expenses, and post-sale

warehousing expenses. In the case of comparisons to ESP sales, we made

an adjustment for indirect selling expenses, limited by the amount of

indirect selling expenses incurred in the United States. No other

adjustments were claimed or allowed.

In calculating FMV in the context of administrative reviews, it is

the Department's practice to use a monthly weighted-average of third

country or home market sales, as appropriate, for comparison to the

U.S. sales price when several home market or third country sales may

represent the behavior of the company for a given month during the

period of review. (See ``Frozen Concentrated Orange Juice from Brazil;

Preliminary Results and Termination in Part of Antidumping Duty

Administrative Review,'' February 3, 1992, 57 FR 3995.) However, in

this review, distortions could result from the application of a monthly

FMV because of hyper-inflation. Where such distortions would have been

created, we calculated FMVs, as we have done in previous reviews, based

on shorter periods as determined by the Brazilian government-mandated

minimum export price (which is derived from the FCOJ 30-day futures

contract price on the New York Cotton Exchange). (See ``Frozen

Concentrated Orange Juice From Brazil; Preliminary Results and

Termination In Part of Antidumping Duty Administrative Review; Intent

to Revoke in Part the Antidumping Duty Order,'' June 19, 1991, 56 FR

28138.)

In the case of Branco Peres, the Department used constructed value,

as defined in section 773 of the Act, for comparison to those U.S.

sales where no contemporaneous third country sales existed.

Constructed value consisted of the sum of the costs of materials,

fabrication, general selling and administrative expenses, freight and

profit. Because the actual profit was more than the statutory minimum

of eight percent of the sum of general expenses and cost of

manufacture, we added the actual profit in accordance with section

773(e)(1)(B)(ii) of the Act.

Preliminary Results of the Review

As a result of this review, we preliminarily determine the dumping

margin to be:

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

Margin

Manufacturer/exporter Time period (percent)

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

Branco Peres............................... 5/1/91 to...... 0.03.

4/30/92........

Citropectina............................... 5/1/91 to...... Zero.

4/30/92........

Frutropic.................................. 5/1/91 to...... Zero.

4/30/92........

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The Department intends to revoke the antidumping duty order with

respect to Frutropic if, at the time the Department publishes the final

results of this review, Frutropic has demonstrated three consecutive

years of sales at not less than foreign market value, and it is not

likely that Frutropic will sell subject merchandise at less than

foreign market value in the future. As required by

Sec. 353.25(c)(2)(ii) of the Department's regulations, the Department

has conducted a verification of all factual information submitted by

Frutropic in this administrative review.

The Department shall determine, and the U.S. Customs Service shall

assess, antidumping duties on all appropriate entries. Individual

differences between United States price and foreign market value may

vary from the percentage stated above. Upon completion of this

administrative review, the Department will issue appraisement

instructions directly to the U.S. Customs Service.

Furthermore, the following deposit requirements will be effective

for all shipments of the subject merchandise entered, or withdrawn from

warehouse, for consumption on or after the publication date of the

final results of this administrative review, as provided by section

751(a)(1) of the Act: (1) The cash deposit rate for the reviewed

company, in the event the order is not revoked in part, will be that

established in the final results of this administrative review; (2) for

previously reviewed or investigated companies not listed above, the

cash deposit rate will continue to be the company-specific rate

published for the most recent period; (3) if the exporter is not a firm

covered in this review, a prior review, or the original less-than-fair-

value investigation, but the manufacturer is such a firm, the cash

deposit rate will be the rate established for the most recent period

for the manufacturer of the merchandise.

The cash deposit rate for all other manufacturers or exporters will

be 1.96 percent ad valorem. On May 25, 1993, the Court of International

Trade (CIT) in Floral Trade Council v. United States, Slip Op. 93-79,

and Federal-Mogul Corporation v. United States, Slip Op. 93-83, decided

that once an ``all others'' rate is established for a company, it can

only be changed through an administrative review. The Department has

determined that in order to implement these decisions, it is

appropriate to reinstate the original ``all others'' rate from the

less-than-fair-value (LTFV) investigation (or that rate as amended for

correction of clerical errors or as a result of litigation) in

proceedings governed by antidumping duty orders for the purposes of

establishing cash deposits in all current and future administrative

reviews. In proceedings governed by antidumping findings, unless we are

able to ascertain the ``all others'' rate from the Treasury LTFV

investigation, the Department has determined that it is appropriate to

adopt the ``new shipper'' rate established in the first final results

of administrative review published by the Department (or that rate as

amended for correction of clerical error or as a result of litigation)

as the ``all others'' rate for the purposes of establishing cash

deposits in all current and future administrative reviews.

Because this proceeding is governed by an antidumping duty order,

the ``all others'' rate for the purposes of this review will be 1.96

percent ad valorem, the ``all others'' rate established in the LTFV

investigation by the Department, (52 FR 8324, March 17, 1987).

This notice also serves as a preliminary reminder to importers of

their responsibility under 19 CFR 353.26 to file a certificate

regarding the reimbursement of antidumping duties prior to liquidation

of the relevant entries during this review period. 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.

Public Comment

Parties to the proceeding may request disclosure within five days

of the date of publication of this notice in the Federal Register, and

any interested party may request a hearing within 10 days of

publication. Any hearing, if requested, will be held 44 days after the

date of publication, or the first workday thereafter. Case briefs and/

or written comments from interested parties may be submitted not later

than 30 days after the date of publication. Rebuttal briefs and

rebuttals to written comments, limited to issues raised in those

comments, may be filed not later than 37 days after publication. The

Department will publish a notice of final results of this

administrative review, including an analysis of issues raised in any

written comments.

This administrative review and notice are in accordance with

section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) and

Sec. 353.22(c)(5)) of the Department's regulations.

Dated: January 26, 1994.

Joseph A. Spetrini,

Acting Assistant Secretary for Import Administration.

[FR Doc. 94-2450 Filed 2-2-94; 8:45 am]

BILLING CODE 3510-DS-P