94-2449. Industrial Phosphoric Acid From Israel; Final Results of Countervailing Duty Administrative Review  

  • [Federal Register Volume 59, Number 23 (Thursday, February 3, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-2449]
    
    
    [[Page Unknown]]
    
    [Federal Register: February 3, 1994]
    
    
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    DEPARTMENT OF COMMERCE
    [C-508-605]
    
     
    
    Industrial Phosphoric Acid From Israel; Final Results of 
    Countervailing Duty Administrative Review
    
    AGENCY: International Trade Administration/Import Administration, 
    Department of Commerce.
    
    ACTION: Notice of final results of countervailing duty administrative 
    review.
    
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    SUMMARY: On October 28, 1993, the Department of Commerce published the 
    preliminary results of its administrative review of the countervailing 
    duty order on industrial phosphoric acid from Israel (58 FR 57986). We 
    have now completed the review and determine the net subsidy to be 6.98 
    percent ad valorem for all firms during the period January 1, 1991 
    through December 31, 1991.
    
    EFFECTIVE DATE: February 3, 1994.
    
    FOR FURTHER INFORMATION CONTACT: Brian Albright or Cameron Cardozo, 
    Office of Countervailing Compliance, International Trade 
    Administration, U.S. Department of Commerce, Washington, DC 20230; 
    telephone: (202) 482-2786.
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        On October 28, 1993, the Department of Commerce (the Department) 
    published in the Federal Register (58 FR 57986) the preliminary results 
    of its administrative review of the countervailing duty order on 
    industrial phosphoric acid from Israel (52 FR 31057; August 19, 1987) 
    covering the period January 1, 1991 through December 31, 1991. The 
    Department has now completed this administrative 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 shipments of Israeli industrial 
    phosphoric acid. During the review period, such merchandise was 
    classifiable under item number 2809.20.00 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 nine programs. Negev Phosphates, Ltd. (NPL), which merged with 
    Rotem Fertilizers Ltd. on December 31, 1991 after operating 
    independently throughout the review period, was the only known producer 
    exporting the subject merchandise from Israel to the United States 
    during the 1991 review period.
    
    Analysis of Comments Received
    
        We gave interested parties an opportunity to comment on the 
    preliminary results. We received a written comment from the 
    respondents, the Government of Israel (GOI) and NPL, and a written 
    rebuttal comment from the petitioners, the Monsanto Company and FMC 
    Corporation.
        Comment: Respondents argue that the cash deposit rate should be 
    reduced by the amount of benefit attributable to the Exchange Rate Risk 
    Insurance Scheme (EIS) because the program was terminated prior to the 
    publication of these final results. The GOI and NPL state that most EIS 
    claims will be paid by the end of 1993 as indicated in the GOI response 
    to the Department's questionnaire. The GOI and NPL also point to the 
    reduction in benefits that exporters received from this program in this 
    review period compared to those received in the prior administrative 
    review. Thus, respondents claim that it is unreasonable to base the 
    deposit rate for future entries on benefits received in 1991, given the 
    program's declining benefits and termination with limited residual 
    benefits.
        Petitioners point out that the exact timing of NPL's receipt of 
    benefits under the EIS will depend on variables such as the time 
    necessary for shipment of the goods and EIS processing of the claim. 
    According to petitioners, these uncertainties preclude the 
    determination of a fixed date for actual termination of benefits to be 
    received by NPL. As a result, EIS benefits should continue to be 
    reflected in the cash deposit rate.
        Department's Position: We disagree with the respondents. The 
    Department's regulations require the Department to instruct the Customs 
    Service to collect a cash deposit of estimated countervailing duties on 
    future entries. The Department normally uses as an estimate of 
    countervailing duties on future entries the assessment rate found in 
    the final results of review (see 19 CFR 355.22(c)(10)).
        Although the EIS program was terminated, it is clear that some 
    payments may continue to be received beyond the date of EIS termination 
    by exporters who entered into EIS contracts before termination of the 
    program. In situations in which a government terminates a program but 
    residual benefits may continue to be bestowed under the terminated 
    program, it is the Department's practice not to adjust the deposit 
    rate. See Cotton Yarn from Brazil; Preliminary Results of 
    Administrative Review (56 FR 47456, 47457; September 19, 1991) and 
    Cotton Yarn from Brazil; Final Results of Administrative Review (57 FR 
    1454; January 14, 1992). In order to adjust the cash deposit rate as a 
    result of a program-wide change, the Secretary must be able to measure 
    the change in the level of countervailable subsidies provided under the 
    program in question (see section 355.50(a)(2) and (d)(1) of 
    Countervailing Duties; Notice of Proposed Rulemaking and Request for 
    Public Comments (54 FR 23366; May 31, 1989). Therefore, because 
    residual benefits from the EIS program may continue to be provided 
    after the date of our preliminary results and cannot be measured, we 
    have not adjusted the cash deposit rate as a result of the termination 
    of the EIS program.
    
    Final Results of Review
    
        After reviewing all of the comments received, we determine the net 
    subsidy to be 6.98 percent ad valorem for all companies during the 
    period January 1, 1991 through December 31, 1991.
        Therefore, the Department will instruct the Customs Service to 
    assess countervailing duties of 6.98 percent of the f.o.b. invoice 
    price on all shipments of this merchandise exported on or after January 
    1, 1991 and on or before December 31, 1991.
        Further, the Department will instruct the Customs Service to 
    collect a cash deposit of 6.98 percent of the f.o.b. invoice price on 
    all shipments of this merchandise entered, or withdrawn from warehouse, 
    for consumption on or after the date of publication of this notice.
        This cash deposit shall remain in effect until publication of the 
    final results of the next administrative review.
        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: January 28, 1994.
    Joseph A. Spetrini,
    Acting Assistant Secretary for Import Administration.
    [FR Doc. 94-2449 Filed 2-2-94; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Published:
02/03/1994
Department:
Commerce Department
Entry Type:
Uncategorized Document
Action:
Notice of final results of countervailing duty administrative review.
Document Number:
94-2449
Dates:
February 3, 1994.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: February 3, 1994, C-508-605