# Notice of Preliminary Critical Circumstances Determination: Honey From the People's Republic of China (PRC) > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A95-13822 ## Record - **Collection:** Federal Register - **Document type:** Notice - **Published:** June 6, 1995 - **Citation:** 60 FR 29824 ## Text DEPARTMENT OF COMMERCE [A-570-838] Notice of Preliminary Critical Circumstances Determination: Honey From the People's Republic of China (PRC) AGENCY: International Trade Administration, Import Administration, Department of Commerce. EFFECTIVE DATE: June 6, 1995. FOR FURTHER INFORMATION CONTACT: Karla Whalen or David J. Goldberger, 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) 482-6309 and (202) 482-4136, respectively. Applicable Statute and Regulations Unless otherwise indicated, all citations to the statute and to the Department's regulations are in reference to the provisions as they existed on December 31, 1994. Preliminary Critical Circumstances Determination The Department of Commerce (the Department) published its preliminary determination of sales at less-than-fair- value in this investigation on March 20, 1995 (60 FR 14725). On April 27, 1995, petitioners in this investigation alleged that critical circumstances exist with respect to imports of honey from the PRC. In accordance with 19 CFR 353.16(b)(2)(ii), since this allegation was filed later than 20 days before the scheduled date of the preliminary determination, we must issue our preliminary critical circumstances determination not later than 30 days after the allegation was filed. Section 733(e)(1) of the Tariff Act of 1930, as amended, provides that the Department will determine that there is a reasonable basis to believe or suspect that critical circumstances exist if: (A) (i) There is a history of dumping in the United States or elsewhere of the class or kind of merchandise which is the subject of the investigation, or (ii) The person by whom, or for whose account, the merchandise was imported knew or should have known that the exporter was selling the merchandise which is the subject of the investigation at less than its fair value, and (B) There have been massive imports of the class or kind of merchandise which is the subject of the investigation over a relatively short period. Imputed Knowledge of Dumping To determine whether the persons by whom or for whose account the merchandise was imported knew, or should have known, that the exporter was selling the merchandise which is the subject of the investigation at less-than-fair-value, the Department's practice is to impute knowledge of dumping when the estimated margins are of such a magnitude that the importer should have reasonably known that dumping exists with regard to the subject merchandise. Normally we consider estimated margins of 25 percent or greater on sales to unrelated parties and margins of 15 percent or greater on sales through related parties to be sufficient to impute such knowledge. (See, e.g., Final Determination of Sales at Less Than Fair Value: Silicon Metal from China (56 FR 18570, April 23, 1991) and Final Determination of Sales at Less Than Fair Value: Extruded Rubber Thread from Malaysia (57 FR 38465, August 25, 1992). In this investigation, we found preliminary dumping margins ranging between 127.52 and 157.16 percent. Accordingly, we find that the importers either knew, or should have known, that the imports of honey were being sold at less-than-fair-value. Because we determine that importers of this merchandise knew, or should have known, that the merchandise was being sold at less-than- fair-value, we do not need to address the question of whether there is a history of dumping of the subject merchandise. Massive Imports Under 19 CFR 353.16(f) and 353.16(g), we normally consider the following to determine whether imports have been massive over a relatively short period of time: 1) volume and value of the imports; 2) seasonal trends; and 3) the share of domestic consumption accounted for by the imports. When examining volume and value data, the Department normally compares the export volume for equal periods immediately preceding and following the filing of the petition (the ``pre-filing period'' and the ``post-filing period''). Under 19 CFR 353.16(f)(2), unless the imports in the post-filing period have increased by at least 15 percent over the imports during the pre-filing period, we will not consider the imports to have been ``massive.'' Because a determination of critical circumstances should be based on [[Page 29825]] company-specific shipment information (See, e.g., Final Determination of Sales at Less-Than-Fair-Value: Certain Hot Rolled Carbon Steel Flat Products, Certain Cold Rolled Carbon Steel Flat Products, and Certain Cut-to-Length Carbon Steel Plate from Belgium, 58 FR 37083 (July 9, 1993)), we requested shipment information from the four companies for which we calculated preliminary margins (See, Preliminary Determination of Sales at Less-Than-Fair-Value: Honey From the People's Republic of China (60 FR 14725, March 20, 1995)). These four companies, (1) Kunshan Xinlong Foods, Ltd. (Xinlong); (2) Jiangsu Native Produce Import and Export (Jiangsu); (3) Jiangxi Native Produce Import and Export (Jiangxi); and (4) Zhejiang Native Produce & Animal By-product Import and Export (Zhejiang), provided shipment information for the period from January, 1993 through April 1995. Pursuant to 19 CFR 353.16(g), in making a critical circumstances determination, the Department normally considers the period beginning on the first day of the month of the initiation and ending at least three months later. The Department considers this period because it is the period immediately prior to a preliminary determination in which exporters of the subject merchandise could take advantage of the knowledge of the dumping investigation to increase exports to the United States without being subject to antidumping duties (see, e.g., Final Determination of Sales at Less Than Fair Value of Certain Internal-Combustion, Industrial Forklift Trucks from Japan (53 FR 12552, April 15, 1988)). For purposes of this preliminary determination of critical circumstances, we are using as our comparison period five months prior to and five months subsequent to the filing of the petition in this investigation. As the petition was filed in the first half of October 1994, per Department practice, this month is considered to be part of the ``post-petition'' period. Thus, the Department analyzed the company specific shipment information for the pre-petition period, May 1994 through September 1994, and the post-petition period, October 1994 through February 1995. The data we received indicates that Xinlong, Jiangxi, and Zhejiang's shipment of honey to the U.S. decreased over the relevant time period and the increase in Jiangsu's shipments exceeded 15 percent. Other Factors Our analysis pursuant to 19 CFR 353.16(f)(1)(ii) indicated that seasonal trends were not a significant factor explaining the increase in Jiangsu's shipments. We were unable to consider the share of U.S. consumption represented by imports from Jiangsu, pursuant to 353.16(f)(1)(iii), because we have insufficient information with regard to Jiangsu's specific market share of domestic consumption. Jiangsu argues that the increase in its shipments during the post- petition period was a result of the new Chinese export quota system which became effective in April 1994. Specifically, Jiangsu claims that it was forced to ship the remainder of its honey quota by year-end 1994, or it would forfeit the right to export its unused quota. As a result of these circumstances, Jiangsu's shipments worldwide increased in November and December 1994. Jiangsu argues that because its shipments increased in the post-petition period for reasons other than an intent to import large amounts prior to suspension of liquidation, the Department should find that these do not constitute ``massive'' imports for purposes of critical circumstances. We believe the evidence on the record is insufficient to support the legal and factual bases for this argument, but may reconsider this argument based on verification findings. Conclusion We find that critical circumstances do not exist for Xinglong, Jiangxi, and Zhejiang because they did not have massive imports over a relatively short period of time. For Jiangsu, we find that critical circumstances do exist due to: (1) Imputed knowledge of dumping; and (2) Massive imports as evidenced by a significant increase in shipments between the pre- and post-petition comparison period. For the exporters whose responses were not analyzed,1 we find that critical circumstances do not exist for the following reason. Due to the large number of responding companies in this case, the Department selected only four exporting companies and their respective producers to analyze in the investigation. The Department does not believe it is appropriate to penalize respondents whose individual data have not been analyzed due to the Department's own administrative constraints. Furthermore, based on an aggregate analysis of the four respondents from which we requested shipment data, we conclude that the increase in shipment data for the pre- and post-petition comparison periods is not larger than 15 percent. For all PRC companies which did not respond to the Department's questionnaire, we have made the determination, as BIA, that ``massive'' imports exist, and we therefore find that critical circumstances do exist for all PRC firms not otherwise named in this notice. \1\ Heilongjiang Native Produce and Animal By-product Import and Export Inner Mongolia Native Produce and Animal By-product Chang Cheng Industrial Co. Ltd. Shaanxi Native Produce Import and Export Kunshan Foreign Trade Co. China (TUHSU) Super Food Import and Export Hubei Native Produce Import and Export Tianjin Native Produce Import and Export Chanting Native Produce Import and Export Qinghai Cereals and Oils Import and Export Shanghai Native Produce Import and Export Guangxi Cereals, Oils and Foodstuffs Import and Export Corporation Sichuan Native Produce Import and Export China (TUHSU) Flavors and Fragrances Import and Export Shandong Cereals and Oils Import and Export Ningbo Native Produce Import and Export Anhui Cereals & Oils Import and Export Jiangsu Sweet Foods, Ltd. Hebei Native Produce Import and Export Anhui Medicines and Health Produce Import and Export Xian Native Produce and Animal By-product Import and Export Liaoning Native Produce Import and Export Liaoning Native Produce Import and Export Anhui Native Produce Import and Export Henan Native Produce Import and Export --------------------------------------------------------------------------- Final Critical Circumstances Determination We will make a final determination and address any comments concerning critical circumstances when we make our final determination in this investigation by August 2, 1995. Suspension of Liquidation In accordance with section 733(e)(2) of the Act, we are directing the Customs Service to suspend liquidation of all entries of honey from Jiangsu Native Produce Import and Export of the PRC and all other PRC companies not specifically named above that are entered, or withdrawn from warehouse, for consumption on or after December 20, 1994 (i.e., 90 days prior to the date of publication of our preliminary determination in the Federal Register). The Customs Service shall require a cash deposit or posting of a bond equal to the estimated preliminary dumping margins, as shown below. This suspension of liquidation will remain in effect until further notice. ------------------------------------------------------------------------ Average Producer/manufacturer/exporter margin percentage ------------------------------------------------------------------------ Jiangsu Native Produce Import and Export.................... 127.52 Kunshan Xinlong Food, Ltd................................... *146.37 [[Page 29826]] Jiangxi Native Produce Import and Export.................... *131.86 Zhejiang Native Produce & Animal By-product Import and Export..................................................... *131.86 All PRC..................................................... 157.16 ------------------------------------------------------------------------ The asterisk indicates the rate for continuing the suspension of liquidation for those exporters found preliminarily to have negative critical circumstances. ITC Notification In accordance with section 733(f) of the Act, we have notified the ITC of our determination. Public Comment Since this preliminary critical circumstances determination is being made after the due date for public comment on our preliminary determination of sales at less than fair value in this case, we will accept written comments on this preliminary determination of critical circumstances until the date in which case briefs are to be filed. This determination is published pursuant to section 733(f) of the Act. Dated: May 30, 1995. Susan G. Esserman, Assistant Secretary for Import Administration. [FR Doc. 95-13822 Filed 6-5-95; 8:45 am] BILLING CODE 3510-DS-P --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A95-13822. Public record. Not legal advice.