NOTICES

                         DEPARTMENT OF COMMERCE

                                [C-351-604]

     Brass Sheet and Strip From Brazil; Preliminary Results of Countervailing Duty
                            Administrative Review

                             Friday, July 19, 1991

 AGENCY: International Trade Administration/Import Administration, Department
 of Commerce.

 ACTION: Notice of preliminary results of countervailing duty administrative review.

 SUMMARY: The Department of Commerce has conducted an administrative review of the
 countervailing duty order on brass sheet and strip from Brazil for the period January
 1, 1990 through December 31, 1990. There were no shipments of the subject merchandise
 during the review period. However, because of program- wide changes, we intend to change
 the cash deposit rate to zero. We invite interested parties to comment on these preliminary
 results.

 EFFECTIVE DATE: July 19, 1991.

 FOR FURTHER INFORMATION CONTACT: Elizabeth Levy or Michael Rollin, Office of
 Countervailing Compliance, International Trade Administration, U.S. Department of
 Commerce, Washington, DC 20230; telephone: (202) 377-2786.

 SUPPLEMENTARY INFORMATION:

 Background

 On January 17, 1991, the Department of Commerce (the Department) published in the
 Federal Register a notice of "Opportunity to Request Administrative Review" (56 FR 1793)
 of the countervailing duty order on brass sheet and strip from Brazil (52 FR 698;
 January 8, 1987). On January 31, 1991, the Government of Brazil requested an
 administrative review of the order. We initiated the review, covering the period January 1,
 1990 through December 31, 1990, on February 19, 1991 (56 FR 6621). The Department has
 now conducted this review in accordance with section 751 of the Tariff Act of 1930, as
 amended (the Tariff Act).

 Scope of Review

 Imports covered by this review are shipments of brass sheet and strip, other than leaded
 brass and tin brass sheet and strip. This merchandise is currently classifiable under item
 numbers 7409.21.00 and 7409.29.00 of the Harmonized Tariff Schedule (HTS). The HTS
 item numbers are provided for convenience and Customs purposes. The written description
 remains dispositive.
 The review covers the period January 1, 1990 through December 31, 1990 and four
 programs.
 The Government of Brazil reported that there were no shipments, and the United States
 Customs Service confirmed that there were no known unliquidated entries of the subject
 merchandise into the United States by exporters of brass sheet and strip from Brazil
 during the review period.

 Analysis of Programs

 Section 751(a) of the Tariff Act authorizes the Department, in the absence of any entries,
 shipments, or exports of the subject merchandise, to conduct an administrative review of
 an outstanding countervailing duty order in order to adjust the cash deposit rate when a
 foreign government has instituted a program-wide change (e.g., elimination or creation of a
 subsidy program). Final Results of Countervailing Duty Administrative Review: Carbon
 Steel Wire Rod From New Zealand, (56 FR 28,863 (1991)). We preliminarily determine that
 the Government of Brazil has instituted program-wide changes with respect to the
 following programs.

 (1) Income Tax Exemption for Export Earnings

 Under this program, exporters were ineligible for an exemption from the 30 percent
 nominal corporate income tax on the portion of their profits attributable to exports. The
 exporter calcuated the tax-exempt portion of profit based on the ratio of export revenue to
 total revenue.
 Decree Law 7988 of December 28, 1989 reduced the benefit received with regard to the
 income tax exemption on export earnings.
 Effective with the year of assessment 1990, all exports were subject to an income tax of 18
 percent.
 Decree Law 8034 of April 12, 1990 eliminated this tax exemption and established a
 prevailing tax rate of 30 percent for domestic and export earnings for the year of
 assessment 1991 (year basis 1990). For purposes of the cash deposit of estimated
 countervailing 

*33253

 duties, we preliminarily determine the benefit from this
 program to be zero.

 (2) CACEX Preferential Working Capital Financing for Exports 

 This program was terminated, effective August 30, 1990, by Central Bank Resolution 1744.
 Loans under this program were suspended as of February 22, 1989 until the program's
 ultimate termination. For purposes of the cash deposit of estimated countervailing
 duties, we preliminarily determine the benefit from this program to be zero.

 (3) Preferential Export Financing Under CIC-OPCRE 6-2-6 (formerly CIC-CREGE 14- 11) of
 the Banco do Brasil.

 As of September 20, 1988, interest rates applicable to CIC-OPCRE 6-2-6 loans have been
 equal to those of market rate loans. (See, Final Affirmative Countervailing Duty
 Determination; Steel Wheels from Brazil (54 FR 15523; April 18, 1989.)) For purposes of
 the cash deposit of estimated countervailing duties, we preliminarily determine the
 benefit from this program to be zero.

 (4) Import Duty Exemption Under Decree-Law 1189

 Brazilian Decree Law 7988, Article 7, of December 28, 1989, terminated this program. For
 purposes of the cash deposit of estimated countervailing duties, we preliminarily
 determine the benefit from this program to be zero.

 Preliminary Results of Review

 As a result of our review, we preliminarily determine that there were no shipments of the
 subject merchandise exported to the United States during the period January 1, 1990
 through December 31, 1991. However, due to the termination of all programs under review,
 we preliminarily determine the net subsidy to be zero for purposes of the cash deposit rate
 of estimated countervailing duties.
 Therefore, as provided for by section 751(a)(1) of the Tariff Act, the Department intends to
 instruct the Customs Service to waive the collection of cash deposits of estimated
 countervailing duties on all shipments of the subject merchandise from Brazil entered,
 or withdrawn from the 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 calculations 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 of 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: July 15, 1991.

 Marjorie A. Chorlins,

 Acting Assistant Secretary for Import Administration.

 [FR Doc. 91-17255 Filed 7-18-91; 8:45 am]

 BILLING CODE 3510-DS-M