Pig Iron From Brazil; Preliminary Results of Countervailing Duty Administrative
Review
Wednesday, January 27, 1993
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AGENCY: International Trade Administration/Import Administration, Department of Commerce. A. Income Tax Reduction for Export Earnings. B. CACEX Preferential Working Capital Financing for Exports. (2) Programs Not Used A. FINEX preferential financing under Resolutions 68 and 509.
ACTION: Notice of preliminary results of countervailing duty administrative review.
SUMMARY: The Department of Commerce is conducting an administrative review of the countervailing duty
order on pig iron from Brazil. We preliminarily determine the net subsidy to be zero for all firms for the period
January 1, 1991 through December 31, 1991. We invite interested parties to comment on these preliminary results.
EFFECTIVE DATE: January 27, 1993.
FOR FURTHER INFORMATION CONTACT:
Anne S. D'Alauro, Dana S. Mermelstein, or Maria P. MacKay, Office of Countervailing Compliance, International
Trade Administration, U.S. Department of Commerce, Washington, DC 20230; telephone: (202) 482-2786.
SUPPLEMENTARY INFORMATION:
Background
On April 8, 1992, the Department of Commerce (the Department) published in the Federal Register a notice of
"Opportunity to Request Administrative Review" (57 FR 11934) of the countervailing duty order on pig iron
from Brazil (45 23045; April 4, 1980). We received requests for review from Associated Metals and
Minerals Corporation, Sumitomo Corporation of America, and Caterpillar World Trading Corporation, interested
parties within the meaning of section 355.2(i) of the Department's regulations. We initiated the review covering
the period January 1, 1991 through December 31, 1991, on May 22, 1992 (57 FR 21769). The Department
is now conducting this review in accordance with section 751 of the Tariff Act of 1930, as amended (the Act).
The final results of the last administrative review of this order were published on March 26, 1992 (57 FR 10460).
Scope of Review
Imports covered by this review are shipments of pig iron of basic, malleable, and low phosphorous grades, from
Brazil. During the review period, such merchandise was classifiable under item numbers 7201.10.00,
7201.30.00, and 7206.10.00 of the Harmonized Tariff Schedule (HTS). The HTS numbers are provided for
convenience and Customs purposes. The written description remains dispositive.
The review covers the period January 1, 1991 through December 31, 1991, twenty-two companies, and seven programs.
Analysis of Programs
(1) Programs Terminated
We examined the following programs and preliminarily determine that they have been terminated by the
Government of Brazil:
Decree Law 8034 of April 12, 1990 eliminated this tax reduction and established a prevailing income tax rate for
all industries of 30 percent for domestic and export earnings for tax year 1990 (the 1990 tax returns are filed in
1991). See, Final Negative Countervailing Duty Determination: Silicon Metal From Brazil (56 FR 26988;
June 12, 1991).
This program was terminated effective August
30, 1990, by Central Bank Resolution 1744. Id. There were no residual benefits to pig iron producers provided
under this program during the review period.
This program was terminated on October 5,
1990 by constitutional provision. Law Number 8.187 dated June 1, 1991 reestablished
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the program under the name of PROEX, but according to the questionnaire response, pig iron producers are
not eligible to apply for or receive benefits under PROEX. B. SUDENE Corporate Income Tax Reduction for Companies Located in the Northeast of Brazil. C. Other Program
None of the pig iron exporters are located in the areas eligible for benefits under this program.
- BEFIEX Reduction of Taxes and Import Duties.
- Accelerated Depreciation on Brazilian-made Capital Equipment.
- FINEP preferential financing program.
Preliminary Results of Review
As a result of our review, we preliminarily determine the net subsidy to be zero for all firms for the period
January 1, 1991 through December 31, 1991.
Upon completion of this review, the Department intends to instruct the Customs Service to liquidate, without
regard to countervailing duties, all shipments of pig iron from Brazil exported on or after January 1, 1991 and on
or before December 31, 1991.
The Department also intends to instruct the Customs Service not to collect cash deposits of estimated
countervailing duties, as provided by section 751(a)(1) of the Act, on any shipments of pig iron 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.
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 within 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 or employer becomes a
party to the proceeding, but in no event later than the date the case briefs, under section 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 Act (19 U.S.C. 1675(a)(1))
and 19 CFR 355.22.
Dated: January 4, 1993.
Rolf Th. Lundberg, Jr.,
Deputy Assistant Secretary for Import Administration.