[Federal Register Volume 63, Number 133 (Monday, July 13, 1998)]
[Notices]
[Pages 37532-37534]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18599]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-351-406]
Certain Agricultural Tillage Tools From Brazil; Preliminary
Results of Countervailing Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of 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
agricultural tillage tools from Brazil for the period January 1, 1996
through December 31, 1996. For information on the net subsidy for
Marchesan Implementos Agricolas, S.A. (``Marchesan''), the reviewed
company, as well as for all non-reviewed companies, please see the
Preliminary Results of Review section of this notice. If the final
results remain the same as these preliminary results of administrative
review, we will instruct the U.S. Customs Service (``Customs'') to
liquidate, without regard to countervailing duties, all shipments of
the subject merchandise from
[[Page 37533]]
Marchesan, as detailed in the Preliminary Results of Review section of
this notice. Interested parties are invited to comment on these
preliminary results. (See Public Comment section of this notice.)
EFFECTIVE DATE: July 13, 1998.
FOR FURTHER INFORMATION CONTACT: Gayle Longest or Lorenza Olivas,
Office of CVD/AD Enforcement VI, Import Administration, International
Trade Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
2786.
SUPPLEMENTARY INFORMATION:
Background
On October 22, 1985, the Department published in the Federal
Register (50 FR 42743) the countervailing duty order on certain
agricultural tillage tools from Brazil. On October 2, 1997 the
Department published a notice of ``Opportunity to Request
Administrative Review'' (62 FR 51628) of this countervailing duty
order. On October 31, 1997, Marchesan requested an administrative
review and partial revocation of the countervailing duty order pursuant
to 19 CFR 351.222. We initiated the review, covering the period January
1, 1996 through December 31, 1996, on November 26, 1997 (62 FR 63069).
In accordance with 19 CFR 351.213(b), this review covers Marchesan, the
only producer/exporter of the subject merchandise for which a review
was requested. This review also covers five programs.
The Department considered Marchesan's revocation request and
determined that the company did not meet the requirements to be
considered for revocation from the countervailing duty order. (See
Letter to Marchesan from Barbara E. Tillman dated June 11, 1998, a
public document on file in the Central Records Unit, Room B-099 of the
Main Commerce Building). Accordingly, pursuant to 19 CFR
351.222(f)(2)(iii), we conclude that there is no reasonable basis to
believe the requirements for revocation are met.
Applicable Statute and Regulations
Unless otherwise indicated, all citations to the statute are
references to the provisions of the Tariff Act of 1930, as amended by
the Uruguay Round Agreements Act (``URAA'') effective January 1, 1995
(``the Act''). The Department is conducting this administrative review
in accordance with section 751(a) of the Act. All citations to the
Department's regulations reference 19 CFR Part 351, et al. Antidumping
Duties; Countervailing Duties; Final Rule, 62 FR 27296; May 19, 1997,
unless otherwise indicated.
Scope of the Review
Imports covered by this review are shipments of certain round
shaped agricultural tillage tools (discs) with plain or notched edge,
such as colters and furrow-opener blades. During the review period,
such merchandise was classifiable under item numbers 8432.21.00,
8432.29.00 8432.80.00 and 8432.90.00 of the Harmonized Tariff Schedule
(``HTS''). The HTS item numbers are provided for convenience and
Customs purposes. The written description remains dispositive.
Analysis of Programs
I. Programs Preliminarily Determined To Be Not Used
We examined the following programs and preliminarily determine that
the producers and/or exporters of the subject merchandise did not apply
for or receive benefits under these programs during the period of
review:
A. Accelerated Depreciation for Brazilian-Made Capital Goods;
B. Preferential Financing for Industrial Enterprises by Banco do
Brasil (FST and EGF loans);
C. SUDENE Corporate Income Tax Reduction for Companies Located in
the Northeast of Brasil;
D. Preferential Financing under PROEX (formerly under Resolution 68
and 509 through FINEX);
E. Preferential Financing under FINEP.
Preliminary Results of Review
For the period January 1, 1996 through December 31, 1996, we
preliminarily determine the net subsidy for Marchesan to be zero
percent ad valorem. If the final results of this review remain the same
as these preliminary results, the Department intends to instruct
Customs to liquidate, without regard to countervailing duties,
shipments of the subject merchandise from Marchesan exported on or
after January 1, 1996, and on or before December 31, 1996.
The Department also intends to instruct Customs to collect cash
deposits of estimated countervailing duties of zero percent ad valorem,
as provided for by section 751(a)(1) of the Act, on all shipments of
this merchandise from Marchesan, entered or withdrawn from warehouse,
for consumption, on or after the date of publication of the final
results of this administrative review.
Because the URAA replaced the general rule in favor of a country-
wide rate with a general rule in favor of individual rates for
investigated and reviewed companies, the procedures for establishing
countervailing duty rates, including those for non-reviewed companies,
are now essentially the same as those in antidumping cases, except as
provided for in section 777A(e)(2)(B) of the Act. The requested review
will normally cover only those companies specifically named. See 19 CFR
351.213(b). Pursuant to 19 CFR 351.212(c), for all companies for which
a review was not requested, duties must be assessed at the cash deposit
rate, and cash deposits must continue to be collected, at the rate
previously ordered. As such, the countervailing duty cash deposit rate
applicable to a company can no longer change, except pursuant to a
request for a review of that company. See Federal-Mogul Corporation and
The Torrington Company v. United States, 822 F.Supp. 782 (CIT 1993) and
Floral Trade Council v. United States, 822 F.Supp. 766 (CIT 1993).
Therefore, the cash deposit rates for all companies except those
covered by this review will be unchanged by the results of this review.
We will instruct Customs to continue to collect cash deposits for
non-reviewed companies at the most recent company-specific or country-
wide rate applicable to the company. Accordingly, the cash deposit
rates that will be applied to non-reviewed companies covered by this
order will be the rate for that company established in the most
recently completed administrative proceeding conducted under the URAA.
If such a review has not been conducted, the rate established in the
most recently completed administrative proceeding pursuant to the
statutory provisions that were in effect prior to the URAA amendments
is applicable. See Certain Agricultural Tillage Tools from Brazil:
Final Results of Countervailing Duty Administrative Review, 60 FR 48692
(September 20, 1995). These rates shall apply until a review of
companies assigned these rates is requested. In addition, for the
period January 1, 1996 through December 31, 1996, the assessment rates
applicable to all non-reviewed companies covered by this order are the
cash deposit rates in effect at the time of entry.
Public Comment
Pursuant to 19 CFR 351.224(b), the Department will disclose to
parties to the proceeding any calculations performed in connection with
these preliminary results within five days after the date of
publication of this notice. Pursuant to 19 CFR 351.309,
[[Page 37534]]
interested parties may submit written comments in response to these
preliminary results. Case briefs must be submitted within 30 days after
the date of publication of this notice, and rebuttal briefs, limited to
arguments raised in case briefs, must be submitted no later than five
days after the time limit for filing case briefs. Parties who submit
argument in this proceeding are requested to submit with the argument:
(1) A statement of the issue, and (2) a brief summary of the argument.
Case and rebuttal briefs must be served on interested parties in
accordance with 19 CFR 351.303(f). Also, pursuant to 19 CFR 351.310,
within 30 days of the date of publication of this notice, interested
parties may request a public hearing on arguments to be raised in the
case and rebuttal briefs. Unless the Secretary specifies otherwise, the
hearing, if requested, will be held two days after the date for
submission of rebuttal briefs, that is, thirty-seven days after the
date of publication of these preliminary results.
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
case briefs, under 19 CFR 351.309(c)(ii), 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 is issued and published in accordance
with section 751(a)(1) and 777(i)(1) of the Act (19 U.S.C. 1675(a)(1)
and 19 U.S.C. 1677f(i)(1)).
Dated: July 6, 1998.
Richard W. Moreland,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 98-18599 Filed 7-10-98; 8:45 am]
BILLING CODE 3510-DS-P
