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New successorship methodology dooms Marsan Gida Sanayi ve Ticret A.S. successorship request: Marsan preliminariliy determined NOT to be successor to Gidasa Sabanci Gida Sanayi ve Ticaret A.S. in countervailing duty changed circumstance review | |
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Covers entries made from , through Preliminary Rate Determination: Marsan Gida Sanyi ve Ticret A.S. - 9.38% (all-others rate) Scope: Imports covered by the order are shipments of certain non-egg dry pasta in packages of five pounds (or 2.27 kilograms) or less, whether or not enriched or fortified or containing milk or other optional ingredients such as chopped vegetables, vegetable purees, milk, gluten, diastases, vitamins, coloring and flavorings, and up to two percent egg white. The pasta covered by this scope is typically sold in the retail market, in fiberboard or cardboard cartons, or polyethylene or polypropylene bags, of varying dimensions. Excluded from the order are refrigerated, frozen, or canned pastas, as well as all forms of egg pasta, with the exception of non-egg dry pasta containing up to two percent egg white. The merchandise subject to review is currently classifiable under item 1902.19.20 of the Harmonized Tariff Schedule of the United States (‘‘HTSUS’’). Although the HTSUS subheading is provided for convenience and customs purposes, the written description of the merchandise subject to the order is dispositive. |
Preliminary Results Summary: The U.S. Department of Commerce preliminarily determined that, for purposes of the countervailing duty order only, Marsan Gida Sanyi ve Ticret A.S. is NOT the successor to Gidasa Sabanci Gida Sanyi ve Ticaret A.S. in its preliminary deterination in the countervailing duty changed circumstances review requested by Marsan earlier this year. The Department of Commerce found, however, that Marsan is the successor for purposes of the antidumping duty order. See Certain Pasta from Turkey: Notice of Final Results of Antidumping Duty Changed Circumstances Review, 74 FR 26373 (June 2, 2009). The Department of Commerce is not using the normal successor-in-interest analysis developed for antidumping proceedings. Instead, it announced a new approach for successor-in-interest determinations for countervailing duty proceedings. The Department of Commerce will specifically analyze whether there have been "significant changes in the companies operations, ownership, or corporate or legal structure" during a "look-back window." Some significant changes may include ownership changes (other than regular buying and selling of publicly-owned shares, mergers and acquisitions, and purchases and sales of signficiant productive units. The Department of Commerce will look at the consolidated and cross-owned financial assets and liabilities, production and commercial activities, and the level of government involvement (ownership or control, loans, equity infusions, etc.). The new methodology will require that companies seeking successor status in countervailing duty status provide the following: "At a minimum, the request should include a full narrative with supporting documentation regarding any changes similar to those items in the non-exhaustive list above as well as complete information addressing the three objective criteria enumerated above. The supporting information should also include, where available, the translated financial statements on a consolidated basis for the respondent for the years of and immediately prior to any changes related to the nonexhaustive list and the objective criteria. (For example, if the change in question occurred in May 2008, annual consolidated financial statements should be provided for years 2007 and 2008). The requesting party should also identify in its request, to the extent of its knowledge, under what exporter/producer name and CVD cash deposit rate the subject merchandise is currently entering into the United States." |