Notice2023-12242
Fresh Garlic From the People's Republic of China: Initiation of Circumvention Inquiry on the Antidumping Duty Order
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 8, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a request from the Fresh Garlic Producers Association and its individual members (collectively, the petitioners), the Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether imports of small and large garlic chunks from the People's Republic of China (China) are circumventing the antidumping duty (AD) order on fresh garlic from China.
Full Text
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<title>Federal Register, Volume 88 Issue 110 (Thursday, June 8, 2023)</title>
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[Federal Register Volume 88, Number 110 (Thursday, June 8, 2023)]
[Notices]
[Pages 37510-37512]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-12242]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-831]
Fresh Garlic From the People's Republic of China: Initiation of
Circumvention Inquiry on the Antidumping Duty Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from the Fresh Garlic Producers
Association and its individual members (collectively, the petitioners),
the Department of Commerce (Commerce) is initiating a country-wide
circumvention inquiry to determine whether imports of small and large
garlic chunks from the People's Republic of China (China) are
circumventing the antidumping duty (AD) order on fresh garlic from
China.
DATES: Applicable June 8, 2023.
FOR FURTHER INFORMATION CONTACT: Charles DeFilippo or Jacob Saude; AD/
CVD Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-3979 or 202-482-0981,
respectively.
[[Page 37511]]
SUPPLEMENTARY INFORMATION:
Background
On February 16, 2023, pursuant to section 781(c) of the Tariff Act
of 1930, as amended (the Act), and 19 CFR 351.226(c), the petitioners
filed a circumvention inquiry request alleging that small and large
garlic chunks are circumventing the Order \1\ and, accordingly, should
be included within the scope of the Order. \2\ On March 17, 2023, we
deferred the decision to initiate this circumvention inquiry until the
ongoing scope inquiry regarding large and small garlic chunks from
Green Garden Produce LLC was complete.\3\ On April 13, 2023, Commerce
officials held a videoconference and in-person meeting with counsel to
the petitioners regarding their February 16, 2023, request that
Commerce conduct a minor alterations circumvention inquiry.\4\ On March
3, 2023, Commerce issued a supplemental questionnaire to the
petitioners regarding their circumvention request.\5\ On May 10, 2023,
the petitioners submitted their supplemental questionnaire response.\6\
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\1\ See Antidumping Duty Order: Fresh Garlic from the People's
Republic of China, 59 FR 59209 (November 16, 1994) (Order).
\2\ See Petitioners' Letter, ``Petitioners' Request for
Circumvention Ruling Pursuant to Section 781(c) of the Tariff Act of
1930, As Amended,'' dated February 16, 2023.
\3\ See Memorandum, ``Extension of Time to Determine Whether to
Initiate Circumvention Inquiry,'' dated March 17, 2023.
\4\ See Memorandum, ``Meeting with Petitioners' Counsel,'' dated
April 13, 2023.
\5\ See Commerce's Letter, ``Circumvention Inquiry Request
Supplemental Questionnaire,'' dated May 3, 2023.
\6\ See Petitioners' Letter, ``Response to Supplemental
Questionnaire in Circumvention Inquiry Request,'' dated May 10,
2023.
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Scope of the Order
The products covered by this Order are all grades of garlic, whole
or separated into constituent cloves, whether or not peeled, fresh,
chilled, frozen, provisionally preserved, or packed in 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. A full
description of the scope of the Order is provided in the Initiation
Checklist.\7\
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\7\ See Initiation Checklist, ``Initiation of the Circumvention
Inquiry on the Antidumping Duty Order,'' dated concurrently with,
and hereby adopted by, this notice (Initiation Checklist) at 7.
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Merchandise Subject to the Circumvention Inquiry
The circumvention inquiry covers small and large garlic chunks
produced in China and exported to the United States.
Initiation of Circumvention Inquiry
Section 351.226(d) of Commerce's regulations states that if
Commerce determines that a request for a circumvention inquiry
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will
accept the request and initiate a circumvention inquiry.'' Section
351.226(c)(1) of Commerce's regulations, in turn, requires that each
request for a circumvention inquiry allege ``that the elements
necessary for a circumvention determination under section 781 of the
Act exist'' and be ``accompanied by information reasonably available to
the interested party supporting these allegations.'' The petitioners
alleged circumvention pursuant to section 781(c) of the Act (minor
alterations of merchandise).
Section 781(c) of the Act provides that Commerce may find
circumvention of an AD order when products which are of the class or
kind of merchandise subject to an AD order have been ``altered in form
or appearance in minor respects . . . whether or not included in the
same tariff classification.'' Section 781(c)(2) of the Act provides an
exception that ``{p{time} aragraph 1 shall not apply with respect to
altered merchandise if the administering authority determines that it
would be unnecessary to consider the altered merchandise within the
scope of the AD order.''
While the statute is silent as to what factors to consider in
determining whether alterations are properly considered ``minor,'' the
legislative history of this provision indicates that there are certain
factors which should be considered before reaching a circumvention
determination. In conducting a circumvention inquiry under section
781(c) of the Act, Commerce has generally relied upon ``such criteria
as the overall physical characteristics of the merchandise, the
expectations of the ultimate users, the use of the merchandise, the
channels of marketing and the cost of any modification relative to the
total value of the imported products.'' \8\
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\8\ See S. Rep. No.71, 100th Cong., 1st Sess. 100 (1987) (``In
applying this provision, the Commerce Department should apply
practical measurements regarding minor alterations, so that
circumvention can be dealt with effectively, even where such
alterations to an article technically transform it into a
differently designated article.''). See also Affirmative Preliminary
Determination of Circumvention of the Antidumping Duty Order on
Certain Cut-to-Length Steel Plate from the People's Republic of
China, 74 FR 33991, 33992 (July 14, 2009), unchanged in Affirmative
Final Determination of Circumvention of the Antidumping Duty Order
on Certain Cut-to-Length Carbon Steel Plate from the People's
Republic of China, 74 FR 40565 (August 12, 2009).
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Analysis
Based on our analysis of the petitioners' circumvention inquiry
request, we determined that the petitioners satisfied the criteria
under 19 CFR 351.226(c), and thus, pursuant to 19 CFR
351.226(d)(1)(ii), we have accepted the request and are initiating the
requested circumvention inquiry of the Order. For a full discussion of
the basis for our decision to initiate the requested circumvention
inquiry, see Initiation Checklist.
Furthermore, pursuant to 19 CFR 351.226(c)(2)(iii), the petitioners
noted that Green Garden is the entity that imports small and large
garlic chunks into the United States. While the petitioners stated that
they are not aware of other exporters and/or producers exporting small
and large garlic chunks to the United States, beyond those that supply
Green Garden, they are concerned that there are numerous Chinese
entities that could begin production of significant volumes of IQF
garlic chunks for exportation to the United States. Therefore, given
the ease with which other Chinese exporters and/or producers could
engage in the same activities as those supplying Green Garden, Commerce
is initiating this circumvention inquiry on a country-wide basis.
Respondent Selection
Commerce intends to base respondent selection on U.S. Customs and
Border Protection (CBP) data. Commerce intends to place the CBP data on
the record within five days of the publication of the initiation
notice. Comments regarding the CBP data and respondent selection should
be submitted within seven days after placement of the CBP data on the
record of the relevant inquiry.
Commerce intends to establish a schedule for questionnaire
responses after respondent selection. A company's failure to completely
respond to Commerce's requests for information may result in the
application of partial or total facts available, pursuant to section
776(a) of the Act, which may include adverse inferences, pursuant to
section 776(b) of the Act.
Suspension of Liquidation
Pursuant to 19 CFR 351.226(l)(1), Commerce intends to notify CBP of
this
[[Page 37512]]
initiation and direct CBP to continue the suspension of liquidation of
entries of products subject to this circumvention inquiry that were
already subject to the suspension of liquidation under the Order and to
apply the cash deposit rates that would be applicable if the products
were determined to be covered by the scope of the Order. Should
Commerce issue affirmative preliminary or final circumvention
determinations, Commerce will follow the suspension of liquidation
rules under 19 CFR 351.226(l)(2)-(4).
Notification to Interested Parties
In accordance with 19 CFR 351.226(d) and section 781(c) of the Act,
Commerce determines that the petitioners' request for a circumvention
inquiry satisfies the requirements of 19 CFR 351.226(c). Accordingly,
Commerce is notifying all interested parties of the initiation of this
circumvention inquiry to determine whether small and large garlic
chunks produced in and exported from China are circumventing the Order
and the opportunity to comment on any additional entities that import
small and large garlic chunks to the United States. In addition, we
have included a description of the products that are the subject to
this inquiry and an explanation of Commerce's decision to initiate this
inquiry as provided in the accompanying Initiation Checklist.\9\ In
accordance with 19 CFR 351.226(e)(1), Commerce intends to issue its
preliminary circumvention determination no later than 150 days from the
date of publication of the notice of initiation of this circumvention
inquiry in the Federal Register.
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\9\ See Initiation Checklist at 4 and 6.
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This notice is published in accordance with section 781(c) of the
Act, and 19 CFR 351.226(d)(1)(ii).
Dated: June 1, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2023-12242 Filed 6-7-23; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on June 8, 2023.
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