[Federal Register Volume 59, Number 152 (Tuesday, August 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19423]
[[Page Unknown]]
[Federal Register: August 9, 1994]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
[C-549-811]
Preliminary Negative Countervailing Duty Determination:
Disposable Lighters From Thailand
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: August 9, 1994.
FOR FURTHER INFORMATION CONTACT: Kristin M. Heim, Office of
Countervailing Investigations, Import Administration, U.S. Department
of Commerce, Room B099, 14th Street and Constitution Avenue, N.W.,
Washington, D.C. 20230; telephone (202) 482-3798.
PRELIMINARY DETERMINATION:
Case History
Since the initiation of this investigation on May 31, 1994, the
following events have occurred.
On June 1, 1994, we issued a questionnaire to the Government of
Thailand in Washington, DC., concerning petitioner's allegations.
On July 8, 1994, we received responses from the Government of
Thailand and Thai Merry Company Ltd. On July 21, 1994, we received a
supplemental questionnaire response filed jointly by both respondents.
Scope of Investigations
The products covered by this investigation are disposable pocket
lighters, whether or not refillable, whose fuel is butane, isobutane,
propane, or other liquified hydrocarbon, or a mixture containing any of
these, whose vapor pressure at 75 degrees fahrenheit (24 degrees
Celsius) exceeds a gage pressure of 15 pounds per square inch. Non-
refillable pocket lighters are imported under subheading 9613.10.0000
of the Harmonized Tariff Schedule of the United States (``HTSUS'').
Refillable, disposable pocket lighters would be imported under
subheading 9613.20.0000. Although the HTSUS subheadings are provided
for convenience and Customs purposes, our written description of the
scope of this proceeding is dispositive.
Injury Test
Although Thailand is not a ``country under the Agreement'' within
the meaning of section 701(b) of the Tariff Act of 1930, as amended
(``the Act''), the merchandise being investigated is non-dutiable under
the Generalized System of Preferences and Thailand is a contracting
party to the General Agreement on Tariffs and Trade. Thailand,
therefore, is entitled to an injury test on imports of the subject
merchandise. On June 20, 1994, the ITC preliminarily determined that
imports of the subject merchandise from Thailand materially injure, or
threaten material injury to, a U.S. industry.
Petitioner
The petitioner is BIC Corporation. Petitioner states that it is the
sole remaining domestic producer of the subject merchandise and that it
is filing on behalf of the domestic industry.
Respondents
The Government of Thailand (``GOT'') and Thai Merry Company Ltd.
(``Thai Merry'') are respondents in this investigation. Although Thai
Merry is not the only exporter of disposable lighters to the United
States, it accounts for more than 85 percent of exports and is,
therefore, the sole company respondent.
Analysis of Programs
For purposes of this preliminary determination, the period of
investigation (``the POI'') is calendar year 1993.
Consistent with our practice in preliminary determinations, when a
response to an allegation denies the existence of a program, receipt of
benefits under a program, or eligibility of a company or industry under
a program, and the Department has no persuasive evidence showing that
the response is incorrect, we accept the response for purposes of the
preliminary determination. All such responses, however, are subject to
verification. If the response cannot be supported at verification, and
the program is otherwise countervailable, the program will be
considered a bounty or grant in the final determination.
Based upon our analysis of the petition and the responses to our
questionnaires, we preliminarily determine the following:
I. Program Preliminarily Determined to be Countervailable
Section 31 of the Investment Promotion Act
The Investment Promotion Act of 1977 (``IPA'') provides incentives
for investment to promote the development of the Thai economy. The IPA
authorizes an array of tax exemptions and exclusions. The IPA is
administered by the Board of Investment through promotion certificates.
These certificates list the various sections of the IPA under which a
company is eligible to receive benefits.
Under Section 31, companies may obtain a three-to-eight year
exemption from payment of corporate income tax on profits derived from
promoted activities, as well as deductions from net profits for losses
incurred during the tax exemption period. The 1977 IPA Act has been
amended several times and, in 1991, the GOT passed the Investment
Promotion Act No. 2 of 1991. This 1991 Act was the law in effect during
the POI. Section 16 of this law states that eligible activities for
this exemption include ``* * * activities which involve production for
export.''
Thai Merry applied for and received income tax exemptions under
section 31 of the IPA for the income tax return filed during the POI.
The approval certificate received by Thai Merry for participation in
this program states that ``the company has received a promoted status
in the business for production of gas lighters for export.''
Because Thai Merry received these benefits for exported lighters,
we preliminarily determine that this program confers an export bounty
or grant. To calculate the benefit for the POI, we divided the tax
savings by the total value of export sales, pursuant to 355.47(c)(ii)
of the Proposed Regulations (Countervailing Duties: Notice of Proposed
Rulemaking and Request for Public Comments, 54 FR 23366 (May 31,
1989)). . On this basis, we calculated a net bounty or grant of 0.23
percent ad valorem.
Because this is the only countervailable program and the rate is de
minimis, pursuant to 19 CFR 355.7 (1994), we preliminarily determine
that no benefits which constitute bounties or grants within the meaning
of the countervailing duty law are being provided to manufacturers,
producers, or exporters of disposable lighters in Thailand.
II. Programs Preliminarily Determined Not to be Used
We preliminarily determine that producers or exporters in Thailand
of the subject merchandise did not receive benefits during the POI for
exports of the subject merchandise to the United States under the
following programs:
1. Industrial Estates/Export Processing Zones
2. Preferential Short-term Loans Under the Export Packing Credit
Program
3. Tax and Duty Exemptions Under the Investment Promotion Act (sections
28, 33, 34, 36(1), 36(2), 36(3) and 36(4))
4. Tax Certificates for Exporters
5. Rediscount of Industrial Bills
6. International Trade Promotion Fund
Verification
In accordance with section 776(b) of the Act, we will verify the
information used in making our final determination.
Public Comment
In accordance with 19 CFR 355.38, we will hold a public hearing, if
requested, to afford interested parties an opportunity to comment on
this preliminary determination. Individuals who wish to request a
hearing must submit such a request within ten days of the publication
of this notice in the Federal Register to the Assistant Secretary for
Import Administration, U.S. Department of Commerce, room B099, 14th
Street and Constitution Avenue, NW., Washington, DC 20230. Interested
parties should contact the Department by telephone to learn the time
and date of the hearing.
This determination is published pursuant to section 703(f) of the
Act (19 U.S.C. 1671b(f)).
Dated: August 1, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-19423 Filed 8-8-94; 8:45 am]
BILLING CODE 3510-DS-P
