[Federal Register Volume 59, Number 199 (Monday, October 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25633]
[[Page Unknown]]
[Federal Register: October 17, 1994]
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DEPARTMENT OF COMMERCE
[C-401-056]
Viscose Rayon Staple Fiber From Sweden Preliminary Results of
Countervailing Duty Administrative Review
AGENCY: International Trade Administration/Import Administration,
Commerce.
ACTION: Notice of preliminary results of countervailing duty
administrative review.
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SUMMARY: The Department of Commerce has conducted an administrative
review of the countervailing duty order on viscose rayon staple fiber
from Sweden. We preliminarily determined the net subsidy to be 0.26
percent ad valorem for the period January 1, 1991 through December 31,
1991. 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: October 17, 1994.
FOR FURTHER INFORMATION CONTACT:
Brian Albright or Maria MacKay, Office of Countervailing Compliance,
International Trade Administration, U.S. Department of Commerce,
Washington, DC 20230; telephone (202) 482-2786.
SUPPLEMENTARY INFORMATION:
Background
On May 6, 1992, the Department of Commerce (the Department)
published in the Federal Register a notice of ``Opportunity to Request
Administrative Review'' (57 FR 19412) of the countervailing duty order
on viscose rayon staple fiber from Sweden (44 FR 28319; May 15, 1979).
Svenska Rayon AB, a producer and exporter of viscose rayon staple
fiber, made a timely request that we conduct an administrative review
of the order for the period January 1, 1991 through December 31, 1991.
We initiated the review on June 18, 1992 (57 FR 27212). The Department
is conducting this administrative review in accordance with section
751(a) of the Tariff Act of 1930, as amended (the Act).
Scope of Review
Imports covered by this review are shipments of Swedish regular
viscose rayon staple fiber and high-wet modulus (modal) viscose rayon
staple fiber. Such merchandise is classifiable under item number
5504.10.00 of the Harmonized Tariff Schedule (HTS). The HTS item number
is provided for convenience and Customs purposes. The written
description remains dispositive.
The review covers the period January 1, 1991 through December 31,
1991, and one program. The only known Swedish producer/exporter of this
merchandise to the United States is Svenska Rayon AB (Svenska).
Analysis of Program
Elderly Employment Compensation Program
The Swedish government provided a subsidy to certain companies
within the textile and apparel industries through a special employment
contribution for older workers. This program provided compensation to a
company based upon the number of hours worked by employees over 50
years of age. A company participating in the program had to agree not
to dismiss or release redundant employees of any age for any reason
other than normal attrition. Payments were calculated on the basis of
28 Swedish kroner per hour for employees over age 50 who were involved
in production. The payment could not exceed 15 percent of the company's
total labor costs. In prior administrative reviews of this order, this
program was determined to be countervailable because the program was
available only to certain companies within the textile and apparel
industry. (See e.g., Viscose Rayon Staple Fiber From Sweden;
Preliminary Results of Countervailing Duty Administrative Review (57 FR
6493; February 25, 1992) and Viscose Rayon Staple Fiber From Sweden;
Final Results of Countervailing Duty Administrative Review (57 FR
12912; April 14, 1992)).
Svenska received its last payment under this program in July 1982.
In January 1983, the Swedish government excluded the rayon fiber
industry, including Svenska, from this program. We have calculated the
benefit stream using the declining balance methodology. We allocated
the benefits from the grant received in 1982 over the 10-year average
useful life of assets in the rayon fiber industry, according to the
``Asset Guideline Classes'' of the Internal Revenue Service. As in
prior reviews of the subject merchandise, we used Svenska's 1982
weighted cost of capital as the discount rate.
We divided the benefit attributable to the review period by the
value of Svenska's total revenue during the review period. On this
basis, we preliminarily determine the benefit from this program to be
0.26 percent ad valorem.
Preliminary Results of Review
As a result of our review, we preliminarily determine the net
subsidy to be 0.26 percent ad valorem for the period January 1, 1991
through December 31, 1991. In accordance with 19 CFR 355.7, any rate
less than 0.50 percent ad valorem is de minimis.
If the final results of this review remain unchanged from these
preliminary results, the Department intends to instruct the Customs
Service to liquidate, without regard to countervailing duties, all
shipments of this merchandise exported on or after January 1, 1991 and
on or before December 31, 1991.
Further, upon completion of this review the Department intends to
instruct the Customs Service to collect a cash deposit of estimated
countervailing duties of zero, as provided for by section 751(a)(1) of
the Act, on all shipments of this merchandise from Sweden 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. 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
C.F.R. 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 C.F.R. 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 Act (19 U.S.C. 1675(a)(1)) and 19 CFR 355.22.
Dated: October 7, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-25633 Filed 10-14-94; 8:45 am]
BILLING CODE 3510-DS-M
