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AD: Brazil Certain Orange Juice

The International Trade Administration (ITA) has made a preliminary affirmative antidumping (AD) duty determination that certain orange juice from Brazil is being, or is likely to be, sold in the U.S. at less than fair value.

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Preliminary Affirmative Antidumping Duty Determination

(This scope of this investigation includes certain orange juice for transport and/or further manufacturing produced in two different forms: (1) frozen orange juice in a highly concentrated form, sometimes referred to as frozen concentrated orange juice for further manufacturing (FCOJM); and (2) pasteurized single-strength orange juice which has not been concentrated, referred to as Not-From-Concentrate (NFC).

In addition, the scope with regard to FCOJM covers only frozen concentrated orange juice (FCOJ) produced and/or exported by those companies who were excluded or revoked from an AD duty order (now revoked) on FCOJ from Brazil as of December 27, 2004. (See below for further details regarding certain of these excluded/revoked companies.)

(See ITA notice for complete scope of investigation, including exclusions, tariff numbers, etc.))

Liquidation suspended; preliminary affirmative critical circumstances finding. The ITA states that because of a preliminary affirmative critical circumstances finding for subject merchandise from Brazil, it is directing U.S. Customs and Border Protection (CBP) to suspend liquidation, and to extend AD duty liability as a result, to all imports of subject merchandise with a time of entry on or after 90 days prior to August 24, 2005.

Post bond or cash deposit. The ITA is also instructing CBP to require a cash deposit or the posting of a bond at the AD rates (equal to the weighted average margin) listed below, for entries with a time of entry on or after August 24, 2005.

CompanyAD Rate
Sucocitrico Cutrale, S.A. (Cutrale)24.62%
Fischer S/A - Agroindustria (Fischer)31.04%
Montecitrus Industria e Comercio Limitada (Montecitrus)60.29%
All others27.16%

The ITA has preliminarily determined that Fischer operates as the same business entity as Citrosuco Paulista S.A. (Citrosuco), which was one of the companies excluded or revoked from a pre-existing, subsequently revoked, AD duty order on FCOJ from Brazil (see below). Therefore, the ITA preliminarily finds that Fischer is the successor-in-interest to Citrosuco and, as a consequence, its exports of FCOJM are subject to this AD duty investigation.

Additional Time to Determine If COINBRA-Frutesp is Subject to Investigation

Among other companies, the ITA revoked the pre-existing AD duty order on FCOJ with regard Coopercitrus Industrial Frutesp (Frutesp) and Frutropic S.A. (Frutropic). However, after revocation, both of these companies experienced changes in their corporate organization.

Specifically, the ITA explains that both companies were purchased by the Louis Dreyfus group in the early 1990's and they are now producing and exporting FCOJM under the name "COINBRA-Frutesp." Because the corporate structure changes for these companies are not recent and involve complex transactions, additional consideration is required to determine their successor-in-interest status. Accordingly, the ITA intends to make its final successor-in-interest findings no later than the final AD duty determination.

Should the ITA find COINBRA-Frutesp to be the successor-in-interest to Frutesp and/or Frutropic, the ITA states that exports of FCOJM of the successor company will be included in this AD duty proceeding.

(See ITT's Online Archives or 04/15/05 news, 05041520, for BP summary of the revocation of the AD duty order on FCOJ from Brazil.)

Postponement of Final AD Duty Determinations

The ITA states that it is postponing its final AD duty determinations for subject merchandise from Brazil until no later than 135 days after August 24, 2005 and is also extending suspension of liquidation accordingly.

(See ITA notice for additional information, including the scope of the investigation which contains certain changes of an editorial nature, discussion scope comments, etc.

See ITT's Online Archives or 02/14/05 news, 05021440, for BP summary of the initiation of this AD duty investigation. See ITT's Online Archives or 06/17/05 news, 05061730, for BP summary of the postponement of the preliminary AD duty determination.)

ITA Contact - Elizabeth Eastwood (202) 482-3874

ITA Notice (FR Pub 08/24/05) available athttp://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/E5-4633.pdf