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