Initiation of Antidumping Duty Investigations: Fresh Cut Roses From Colombia and Ecuador

DEPARTMENT OF COMMERCE

[A-301-801 and A-331-801]

Initiation of Antidumping Duty Investigations: Fresh Cut Roses

From Colombia and Ecuador

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: March 14, 1994.

FOR FURTHER INFORMATION CONTACT: Kimberly Hardin, Office of Antidumping

Investigations, Import Administration, International Trade

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

Constitution Avenue, NW., Washington, D.C. 20230; telephone (202) 482-

0371.

Initiation of Investigations

The Petitions

On February 14, 1994, we received petitions filed in proper form by

the Floral Trade Council. In accordance with 19 CFR 353.12, the

petitioner alleges that imports of fresh cut roses from Colombia and

Ecuador are being, or are likely to be, sold in the United States at

less than fair value within the meaning of section 731 of the Tariff

Act of 1930, as amended (the Act), and that these imports are

materially injuring, or threaten material injury to, a U.S. industry.

The petitioner has stated that it has standing to file the

petitions because it is an interested party, as defined under section

771(9)(C) of the Act, and because the petitions were filed on behalf of

the U.S. industry producing the product subject to these

investigations. If any interested party, as described under paragraphs

(C), (D), (E), or (F) of section 771(9) of the Act, wishes to register

support for, or opposition to, these petitions, it should file a

written notification with the Assistant Secretary for Import

Administration.

Scope of Investigations

The products covered by these investigations are fresh cut roses,

including sweethearts or miniatures, intermediates, and hybrid teas,

whether imported as individual blooms (stems) or in bouquets or

bunches. Roses are classifiable under subheadings 0603.10.6010 and

0603.10.6090 of the Harmonized Tariff Schedule of the United States

(HTSUS). The HTSUS subheadings are provided for convenience and customs

purposes. Our written description of the scope of these investigations

is dispositive.

United States Price and Foreign Market Value

Colombia

Petitioner based United States price (USP) on offers for sale by

Colombian importers and distributors of the subject merchandise to U.S.

customers. Petitioner deducted from USP amounts for air freight,

insurance, customs duties and handling charges. Petitioner also

deducted an amount for commissions paid to the grower on sales of

subject merchandise.

Petitioner calculated foreign market value (FMV) using two

methodologies. First, petitioner based FMV on import statistics for

fresh cut roses in various third countries. Second, petitioner based

FMV on constructed value (CV).

For FMV based on import statistics, petitioner used third country

import statistics obtained from Statistics Canada and Eurostat.

Petitioner deducted amounts for air freight and insurance and, where

appropriate, duty charges. Since the import statistics were in foreign

currencies, petitioner made currency conversions using monthly exchange

rates published in the Federal Reserve Bulletin.

Petitioner alleged home market sales below the cost of production

(COP) with respect to the subject merchandise for all Colombian

producers and exporters named in the petition. However, petitioner did

not provide any company-specific sales data in its COP allegation.

Because it is the Department's practice to require COP allegations to

be company-specific, we have not initiated a COP investigation.

Regarding FMV based on CV, because the Department is not initiating

a COP investigation, and because the information submitted concerning

price-to-price comparisons was deemed to be adequate, we did not review

the CV data contained in the petition, nor have we accepted it for

purposes of initiation.

Comparison of FMV based on import statistics and net USP for sales

of fresh cut roses from Colombia results in a range of alleged dumping

margins from .4 percent to 256.7 percent.

Ecuador

Petitioner based USP on offers for sale by Ecuadorean importers and

distributors of the subject merchandise to U.S. customers. Petitioner

deducted from USP amounts for air freight, insurance, customs duties

and handling charges. Petitioner also deducted an amount for

commissions paid to the grower on sales of subject merchandise.

Petitioner calculated FMV using the two methodologies discussed above

for Colombia.

Petitioner alleged home market sales below COP with respect to the

subject merchandise for all Ecuadorean producers and exporters named in

the petition. However, because petitioner did not provide any company-

specific sales data in its COP allegation, we have not initiated a COP

investigation.

Regarding FMV based on CV, because the Department is not initiating

a COP investigation, and because the information submitted concerning

price-to-price comparisons was deemed to be adequate, we did not review

the CV data contained in the petition, nor have we accepted it for

purposes of initiation.

Comparison of FMV based on import statistics and net USP for sales

of fresh cut roses from Ecuador results in a range of alleged dumping

margins from .2 percent to 316.7 percent.

Initiation of Investigations

Under 19 CFR 353.13(a), the Department must determine, within 20

days after a petition is filed, whether the petition properly alleges

the basis on which an antidumping duty may be imposed under section 731

of the Act, and whether the petition contains information reasonably

available to the petitioners supporting the allegations. We have

examined the petitions on fresh cut roses from Colombia and Ecuador and

have found that the petitions meet the requirements of 19 CFR

353.13(a). Therefore, we are initiating antidumping duty investigations

to determine whether imports of fresh cut roses from Colombia and

Ecuador are being, or are likely to be, sold in the United States at

less than fair value. If these investigations proceed normally, we will

make our preliminary determinations by July 25, 1994.

International Trade Commission (ITC) Notification

Section 732(d) of the Act requires us to notify the ITC of these

actions and we have done so.

Preliminary Determination by the ITC

The ITC will determine by March 31, 1994, whether there is a

reasonable indication that imports of fresh cut roses from Colombia and

Ecuador are materially injuring, or threaten material injury to, a U.S.

industry. A negative ITC determination in any of these investigations

will result in its termination; otherwise, the investigations will

proceed according to statutory and regulatory time limits.

This notice is published pursuant to section 732(c)(2) of the Act

and 19 CFR 353.13(b).

Dated: March 7, 1994.

Joseph A. Spetrini,

Acting Assistant Secretary for Import Administration.

[FR Doc. 94-5879 Filed 3-11-94; 8:45 am]

BILLING CODE 3510-DS-P