[Federal Register Volume 60, Number 17 (Thursday, January 26, 1995)]
[Notices]
[Pages 5166-5168]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2001]
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DEPARTMENT OF COMMERCE
[C-201-405]
Certain Textile Mill Products from Mexico; Preliminary Results of
Countervailing Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Commerce.
ACTION: Notice of Preliminary Results of Countervailing Duty
Administrative Review.
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SUMMARY: The Department of Commerce (the Department) is conducting an
administrative review of the countervailing duty order on certain
textile mill products from Mexico for the period January 1, 1992,
through December 31, 1992. We preliminarily determine the total net
subsidy to be 0.15 percent ad valorem for all companies during this
review period. In accordance with 19 CFR 355.7, any rate less than 0.50
percent ad valorem is de minimis. We invite interested parties to
comment on these preliminary results.
EFFECTIVE DATE: January 26, 1995.
FOR FURTHER INFORMATION CONTACT: Mercedes Fitchett or Dana Mermelstein,
Office of Countervailing Compliance, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, N.W., Washington, D.C. 20230,
telephone: (202) 482-2786.
SUPPLEMENTARY INFORMATION:
Background
On March 12, 1993, the Department published a notice of
``Opportunity to Request Administrative Review'' (58 FR 13583) for the
countervailing duty order on certain textile mill products from Mexico
(50 FR 10824; March 18, 1985). We received a request for review from
the Amalgamated Clothing and Textile Workers Union (ACTWU), an
interested party. The Government of Mexico and the Camara Nacional de
la Industria Textil, a Mexican textile trade association, objected to
ACTWU's request for review, claiming that ACTWU was not an interested
party. The Department reviewed the information provided by the ACTWU
with its request for review, which indicated that ACTWU members
produced the subject merchandise. In accordance with 19 CFR Sec. 355.2,
the Department determined that ACTWU is an interested party in the
proceeding, and is thus entitled to request an administrative review.
We initiated the review, covering the period January 1, 1992,
through December 31, 1992, on May 6, 1993 (58 FR 26960). This review
involves 32 companies and 10 government programs. The Department is now
conducting this review in accordance with section 751 of the Tariff Act
of 1930, as amended (the Act).
Scope of Review
Imports covered by this review are certain textile mill products
from Mexico. Shipments of such merchandise are classifiable under the
Harmonized Tariff Schedule (HTS) item numbers listed in the Appendix to
this notice.
Calculation Methodology for Assessment and Deposit Purposes
We calculated the net subsidy on a country-wide basis by first
calculating the subsidy rate for each company subject to the
administrative review. We then weight-averaged the rate received by
each company using as the weight its share of total Mexican exports to
the United States of subject merchandise, including all companies, even
those with de minimis and zero rates. We then summed the individual
companies' weighted-average rates to determine the subsidy rate from
all programs benefiting exports of subject merchandise to the United
States.
Since the country-wide rate calculated using this methodology was
de minimis, as defined by 19 CFR Sec. 355.7(1994), no further
calculations were necessary.
Analysis of Programs
(1) BANCOMEXT Financing for Exporters
Effective January 1, 1992, the Mexican Treasury Department
eliminated the FOMEX loan program and transferred the FOMEX trust to
the Banco Nacional de Comercio Exterior, S.N.C. (BANCOMEXT). The
BANCOMEXT program operates much like its predecessor, FOMEX. BANCOMEXT
offers short-term financing to producers or trading companies engaged
in export activities; any company generating foreign currency through
exports is eligible for financing under this program. In addition,
BANCOMEXT may provide financing to foreign buyers of Mexican goods and
services. BANCOMEXT provides two types of financing, both in U.S.
dollars: working capital loans (pre-export loans), and loans secured by
export sales (export loans).
The Department has previously found this program to confer an
export subsidy to the extent that the loans are provided at
preferential rates. See, e.g., Ceramic Tile From Mexico; Preliminary
Results of Countervailing Duty Review (57 FR 5997; February 19, 1992)
and Ceramic Tile From Mexico; Final Results of Countervailing Duty
Review (57 FR 24247; June 8, 1992). In this review, the Government of
Mexico provided no new information or evidence of changed circumstances
that would warrant reconsideration of that determination.
Because loans are provided by BANCOMEXT to commercial banks in
dollars and indexed to dollars for repayment, we used a dollar
benchmark. See Certain Steel Products from Mexico; Final Countervailing
Duty Determination (58 FR 37357; July 9, 1993). To determine the
benchmark for BANCOMEXT pre-export and export loans on which interest
was due during 1992, we used the average of the quarterly weighted-
average effective interest rates published in the Federal Reserve
Bulletin, namely 7.18 percent. Generally, the BANCOMEXT loans under
review were granted at annual interest rates ranging from 7.0 percent
to 11.11 percent.
We consider the benefits from preferential loans to occur at the
time the interest is paid. Because interest on BANCOMEXT pre-export
loans is paid at maturity, we calculated benefits based on pre-export
loans that matured during the review period; such loans were obtained
between March 1992 and May 1992. Interest on BANCOMEXT
[[Page 5167]] export loans is paid in advance; we therefore calculated
benefits based on BANCOMEXT export loans received during the review
period. Also, because exporters are able to tie BANCOMEXT loans to
specific shipments, we measure the benefit only from BANCOMEXT loans
tied to shipments of the subject merchandise to the United States.
Several exporters of certain textile mill products used BANCOMEXT
export sales financing; however, during the review period, BANCOMEXT
charged a preferential annual interest rate on only one loan. To
determine the benefit for this loan, we multiplied the difference
between the interest rate charged and the benchmark interest rate by
the principal and then multiplied this amount by the term of the loan
divided by 365. We then divided the BANCOMEXT benefit by the value of
the company's total exports of subject merchandise to the United States
during the review period and then weight-averaged the resulting benefit
by the company's portion of total exports of subject merchandise to the
United States. On this basis, we preliminarily determine the benefit
from this program to be less than 0.005 percent ad valorem.
(2) PITEX
The Program for Temporary Importation of Products used in the
Production of Exports (PITEX) was established by a decree published in
the Diario Oficial on May 9, 1985, and amended in the Diario Oficial on
September 19, 1986, and May 3, 1990. The program is jointly
administered by the Ministry of Commerce and Industrial Development
(SECOFI) and the Customs Administration. Under PITEX, exporters with a
proven export record may receive authorization to temporarily import
products to be used in the production of exports for up to five years
without having to pay the import duties normally imposed on those
imports. PITEX allows for the exemption of import duties for the
following categories of merchandise used in export production: raw
materials, packing materials, fuels and lubricants, machinery used to
manufacture products for export, and spare parts and other machinery.
The importer must post a bond or other security to guarantee the
reexportation of the temporary imports. Because it is only available to
exporters, the Department previously found in Certain Textile Mill
Products From Mexico; Final Results of Countervailing Duty
Administrative Review (56 FR 50859; October 9, 1991) and Ceramic Tile
From Mexico; Final Results of Countervailing Duty Administrative Review
(57 FR 24247; June 8, 1992) that PITEX provides countervailable
benefits to the extent that it provides duty exemptions on imports of
merchandise not physically incorporated into exported products. In this
review, the Government of Mexico provided no new information or
evidence of changed circumstances that would warrant reconsideration of
that determination.
During the review period, three firms used the PITEX program for
temporary imports of machinery and spare parts which are not physically
incorporated into exported products. To calculate the benefit from this
program, we first calculated the duties which would have otherwise been
paid by each company on the non- physically incorporated items that
were imported under the PITEX program during the review period. We then
divided that amount by each company's total exports of subject
merchandise to the United States during the review period and then
weight-averaged the resulting benefit by each company's portion of
total exports of subject merchandise to the United States. On this
basis, we preliminarily determine the benefit from this program to be
0.15 percent ad valorem.
(3) Other Programs
We also examined the following programs and preliminarily determine
that producers and exporters of the subject merchandise did not apply
for or receive benefits under these programs during the review period:
(A) Other BANCOMEXT preferential financing;
(B) Fiscal Promotion Certificates (CEPROFI);
(C) Import duty reductions and exemptions;
(D) State tax incentives;
(E) Article 15 Loans;
(F) NAFINSA FONEI-type financing; and
(G) NAFINSA FOGAIN-type financing.
Preliminary Results of Review
We preliminarily determine the total net subsidy to be 0.15 percent
ad valorem during the period January 1, 1992 through December 31, 1992.
In accordance with 19 CFR 355.7, any rate less than 0.5 percent ad
valorem is de minimis.
If the final results of this review remain the same as these
preliminary results, the Department intends to instruct the Customs
Service to liquidate, without regard to countervailing duties, all
shipments of the subject merchandise from Mexico exported on or after
January 1, 1992, and on or before December 31, 1992. Further, as
provided by section 751(a)(1) of the Act, the Department will instruct
Customs to collect cash deposits of estimated countervailing duties at
a rate of zero for all shipments of the subject merchandise from Mexico
entered, or withdrawn from warehouse, for consumption on or after the
date of publication of the final results of this administrative review.
Parties to the proceeding may request disclosure of the calculation
methodology and interested parties may request a hearing not later than
10 days after the date of publication of this notice. Interested
parties may submit written arguments in case briefs on these
preliminary results within 30 days of the date of publication. Rebuttal
briefs, limited to arguments raised in case briefs, may be submitted
seven days after the time limit for filing the case brief. Any hearing,
if requested, will be held seven days after the scheduled date for
submission of rebuttal briefs. Copies of case briefs and rebuttal
briefs must be served on interested parties in accordance with 19 CFR
355.38(e).
Representatives of parties to the proceeding may request disclosure
of proprietary information under administrative protective order no
later than 10 days after the representative's client or employer
becomes a party to the proceeding, but in no event later than the date
the case briefs, under 19 CFR 355.38(c), are due.
The Department will publish the final results of this
administrative review including the results of its analysis of issues
raised in any case or rebuttal brief or at a hearing.
This administrative review and notice are in accordance with
section 751(a)(1) of the Tariff Act (19 U.S.C. 1675(a)(1)) and 19 CFR
355.22.
Dated: January 16, 1995.
Susan G. Esserman
Assistant Secretary for Import Administration.
Appendix--Certain Textile Mill Products from Mexico C-201-405 Harmonized Tariff System (HTS) Numbers
4010.10.10........... 5109.10.60 5109.90.60 5111.11.70 5111.19.60
5111.20.90........... 5111.30.90 5112.20.30 5112.30.30 5204.11.00
[[Page 5168]]
5204.19.00........... 5204.20.00 5205.11.10 5205.12.10 5205.12.20
5205.13.10........... 5205.13.20 5205.14.10 5205.23.00 5205.24.00
5205.25.00........... 5205.31.00 5205.32.00 5205.33.00 5205.34.00
5205.42.00........... 5205.43.00 5205.44.00 5206.11.00 5206.12.00
5206.13.00........... 5206.14.00 5206.15.00 5206.31.00 5206.32.00
5206.33.00........... 5206.34.00 5206.35.00 5206.41.00 5206.42.00
5206.43.00........... 5206.44.00 5206.45.00 5207.10.00 5207.90.00
5208.11.20........... 5208.12.40 5208.13.00 5208.19.40 5208.21.20
5208.21.40........... 5208.22.40 5208.22.60 5208.23.00 5208.29.40
5208.29.60........... 5208.31.40 5208.31.60 5208.31.80 5208.32.30
5208.32.40........... 5208.32.50 5208.33.00 5208.39.20 5208.39.80
5208.41.40........... 5208.41.60 5208.41.80 5208.42.30 5208.42.40
5208.42.50........... 5208.43.00 5208.49.40 5208.51.40 5208.51.60
5208.51.80........... 5208.52.30 5208.52.40 5208.52.50 5208.53.00
5208.59.20........... 5208.59.80 5209.11.00 5209.19.00 5209.31.60
5209.32.00........... 5209.41.60 5209.43.00 5209.51.60 5209.52.00
5210.21.40........... 5210.21.60 5210.22.00 5210.29.40 5210.29.60
5210.32.00........... 5210.39.40 5210.39.60 5210.52.00 5210.59.40
5210.59.60........... 5211.31.00 5211.51.00 5401.10.00 5401.20.00
5402.10.30........... 5402.20.30 5402.31.30 5402.31.60 5402.32.30
5402.32.60........... 5402.33.30 5402.41.00 5402.43.00 5402.49.00
5402.51.00........... 5402.52.00 5402.59.00 5403.20.30 5403.20.60
5406.10.00........... 5406.20.00 5407.41.00 5407.42.00 5407.43.20
5407.44.00........... 5407.52.20 5407.53.10 5407.53.20 5407.54.00
5407.60.05........... 5407.60.10 5407.60.20 5407.91.05 5407.92.05
5407.93.05........... 5407.94.05 5408.21.00 5408.22.00 5408.23.20
5408.24.00........... 5408.31.05 5408.32.05 5408.33.05 5408.34.05
5508.10.00........... 5508.20.00 5509.12.00 5509.21.00 5509.22.00
5509.31.00........... 5509.32.00 5509.41.00 5509.51.30 5509.51.60
5509.53.00........... 5509.69.20 5509.69.40 5509.99.20 5509.99.40
5511.10.00........... 5511.20.00 5511.30.00 5513.11.00 5513.13.00
5513.19.00........... 5513.21.00 5513.23.00 5513.29.00 5513.33.00
5513.39.00........... 5513.41.00 5513.43.00 5513.49.00 5514.11.00
5514.19.00........... 5514.21.00 5514.29.00 5514.41.00 5514.49.00
5515.13.05........... 5516.11.00 5516.12.00 5516.13.00 5516.14.00
5516.41.00........... 5516.42.00 5516.43.00 5516.44.00 5516.91.00
5516.92.00........... 5516.93.00 5516.94.00 5601.10.20 5601.22.00
5602.10.90........... 5602.21.00 5602.90.60 5603.00.90 5607.41.30
5607.49.15........... 5607.49.25 5607.50.20 5608.11.00 5701.10.16
5701.10.20........... 5701.90.20 5702.10.90 5702.31.10 5702.31.20
5702.32.10........... 5702.32.20 5702.41.10 5702.41.20 5702.42.10
5702.42.20........... 5702.51.20 5702.51.40 5702.52.00 5702.91.30
5702.91.40........... 5702.92.00 5703.10.00 5703.20.10 5703.20.20
5703.30.00........... 5704.10.00 5704.90.00 5705.00.20 5801.31.00
5801.33.00........... 5801.34.00 5801.35.00 5801.36.00 5803.10.00
5803.90.30........... 5804.10.00 5804.21.00 5804.29.00 5804.30.00
5805.00.25........... 5806.32.10 5810.10.00 5810.91.00 5810.92.00
5902.10.00........... 5902.20.00 5902.90.00 5911.10.20 5911.20.10
5911.31.00........... 5911.32.00 6001.10.20 6001.22.00 6001.92.00
6002.10.80........... 6002.20.10 6002.20.60 6002.30.20 6002.43.00
6002.93.00........... 6301.10.00 6301.20.00 6301.30.00 6301.40.00
6301.90.00........... 6302.22.10 6302.22.20 6302.32.10 6302.32.20
6302.40.10........... 6302.40.20 6302.51.10 6302.51.20 6302.51.30
6302.51.40........... 6302.52.10 6302.52.20 6302.53.00 6302.59.00
6302.91.00........... 6302.92.00 6302.93.20 6302.99.20 6303.12.00
6303.19.00........... 6303.92.00 6303.99.00 6304.11.20 6304.19.05
6304.19.15........... 6304.19.20 6304.91.00 6304.92.00 6304.93.00
6304.99.15........... 6304.99.60 7019.20.10 9404.90.90 ....................
5209.32.00 Coverage limited to fabrics, not napped, of numbers 17
to 33.
5209.52.00 Coverage limited to fabrics, not napped, of numbers 17
to 33.
5402.10.30 Coverage limited to yarns provided for in subheading
5402.10.3040.
5402.20.30 Coverage limited to yarns provided for in subheading
5402.20.3040.
5402.33.30 Coverage limited to yarns, valued not over $2.20 per
kilogram.
5402.41.00 Coverage limited to yarns provided for in subheading
5402.41.0040.
5402.43.00 Coverage limited to yarns provided for in subheading
5402.42.0040.
5402.49.00 Coverage limited to yarns provided for in subheading
5402.49.0070 and 5402.49.0080.
5509.31.00 Not to include single blended yarns containing a
combination of noncontinuous acrylic and continuous nylon filaments.
5509.32.00 Not to include plied blended yarns containing a
combination of noncontinuous acrylic and continuous nylon filaments.
[FR Doc. 95-2001 Filed 1-25-95; 8:45 am]
BILLING CODE 3510-DS-P
