Garlic That Is Boiled, Then Frozen Shouldn't Be Subject to AD on Fresh Garlic, Importer Says
An importer said in a March 27 complaint that the Commerce Department shouldn't have found that its garlic cloves from China that are boiled, then frozen were subject to an antidumping duty order on fresh garlic (Export Packers Company Limited v. U.S., CIT # 24-00061).
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The order covers “all grades of garlic” whether or not they are “peeled, fresh, chilled, frozen, provisionally preserved … but not prepared or preserved by the addition of other ingredients or heat processing.” In its scope ruling for the importer, Export Packers, Commerce held the term “heat processing” to be ambiguous but said it couldn't find any primary sources that defined “boiling” as such (see 2402260025). It ruled against Export Packers after a (k)(2) factors analysis.
Export Packers said in its complaint that Commerce’s ruling had disregarded the plain language of the AD order. Its boiled cloves are heat processed, it said, making them exempt.
The importer also argued that Commerce “disregarded critical evidence” it had submitted regarding its products’ end-use expectations, physical characteristics and channels of trade. It said the department overly relied on a distinguishable scope ruling concerning blanched garlic from another company, Amexim. Commerce also incorrectly found a distinction between cooked garlic -- such as Export Packers’ garlic -- and roasted garlic, which is not covered by the order, it said.
After being boiled, the importer’s garlic lost 98% of its allicin, “the active flavoring ingredient that provides fresh garlic with its distinctive, pungent taste and aroma,” Export Packers said. Boiled garlic is also used in different recipes, it said.
Finally, it said that Commerce wrongly held that the “channels of trade” (k)(2) factor indicated Export Packers’ garlic wasn't prepared using heat processing.
“In so concluding, however, Commerce never explained why fresh garlic and garlic ‘prepared’ by ‘heat processing’ would be retailed through different channels of trade, when, as Export Packers explained in its supplemental questionnaire response, both are food products,” it said.