On June 15th, the Department of Commerce (“Commerce”) issued the final results in the 19th Administrative Review of the antidumping order on fresh garlic from the PRC. During the review, Kelly Drye attorneys, on behalf of our clients, the California Fresh Garlic Producers Association (FGPA), submitted information that revealed significant discrepancies between export data recorded by China’s Customs authority and import data recorded by U.S. Customs and Border Protection (“CBP”) which the relevant exporters had submitted to Commerce during the review.
Specifically, the Chinese export data showed that the two major Chinese exporters subject to the review, Hebei Golden Bird Trading Co., Ltd. (“Golden Bird”) and Jinxiang Hejia Co., Ltd. (“Hejia”), exported significantly less Chinese garlic than they reported to Commerce. That data also showed that certain other exporters—which were subject during the one year period to a cash deposit rate of $4.71/kg—exported significant volumes of Chinese garlic that were not reflected in the CBP data. In contrast, Hejia and Golden Bird were subject to the zero or very low cash deposit rates. These data strongly suggested that the U.S. importers had falsely reported to CBP that Golden Bird and Hejia were the exporters of record so the imports could enter under their very low cash deposit rates, instead of the very high deposit rates of the actual Chinese exporters.
Confronted with this evidence, Commerce directed Hejia and Golden Bird to submit information and documentation to substantiate the volumes of subject merchandise each respondent purportedly exported during the POR. Hejia immediately withdrew from the administrative review, and was assigned the China-wide rate of $4.71/kg in the preliminary and final results. Golden Bird submitted deficient responses, was found uncooperative, and was assigned the China-wide rate in the final results as well.
This result is significant because it marks a second instance in which Commerce has relied on Chinese customs data placed on the record by Kelley Drye attorneys to impeach information submitted by major Chinese fresh garlic exporters.
Commerce’s final results and unpublished Issues and Decision Memo can be found here and here.