60 FR 20478

                                            NOTICES

                                    DEPARTMENT OF COMMERCE

                                           [C-351-029]

               Final Results of Countervailing Duty Administrative Review: Certain Castor Oil                                     Products From Brasil

                                     Wednesday, April 26, 1995

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

EFFECTIVE DATE: April 26, 1995. 

FOR FURTHER INFORMATION CONTACT:Vincent Kane or Cynthia Thirumalai, Office of Countervailing Investigations,
Import Administration, U.S. Department of Commerce, Room B099, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone (202) 482-2815 and
(202) 482-4087, respectively.

Final Determination

Background

On November 7, 1994, the Department of Commerce (the Department) published in the Federal Register (59 FR 55443) the
preliminary results of its administrative review of the countervailing duty order on certain castor oil products from 
  Brazil (Preliminary Determination). See 41 FR 11018 (March 16, 1976). The Department has now completed that
administrative review in accordance with section 751 of the Tariff Act of 1930, as amended (the Act).

Applicable Statute and Regulations

The Department is conducting this administrative review in accordance with section 751(a) of the Act. Unless otherwise
indicated, all citations to the statute and to the Department's regulations are in reference to the provisions as they existed
on December 31, 1994.


Scope of Review

The merchandise subject to this review is hydrogenated castor oil and 12- hydroxystearic acid. Imports of these products
are currently classifiable under the following Harmonized Tariff Schedule ("HTS") subheadings: 1516.20.90 and 1519.19.40.
Although the HTS subheadings are provided for convenience and customs purposes, our 

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written description of the scope of this proceeding is dispositive.

This review covers the period January 1, 1992 through December 31, 1992, six companies, and the following 12 programs:
(1) Preferential Export Financing under Resolution 950/1009; (2) Income Tax Exemption for Export Earnings; (3)
Preferential Export Financing Under CIC-OPCRE 6-2-6; (4) Preferential Financing for industrial Enterprises by the Bank of 
  Brazil; (5) Reduction of Industrial Products Tax (IPI) and Import Duties Under Decreto No. 77.065 through BEFIEX;
(6) Preferential Financing for National Trading Companies under Resolution 883 of the Banco Central do Brasil; (7)
Accelerated Depreciation for Brazilian-Made Capital Goods; (8) Preferential Financing under Resolution 68 through FINEX;
(9) Preferential Financing under Resolution 578/83 through FUNPAR; (10) Preferential Financing under Resolution
579/83 through PROEX and PROSIM; (11) Preferential Financing for the Storage of Merchandise Destined for Export under
Resolution 330/Portaria 130 of the Banco Central do Brasil; and (12) Green Yellow Drawback (Portaria 68/83).

Calculation Methodology for Assessment and Cash Deposit Purposes

We calculated the total subsidy on a country-wide basis by first calculating the subsidy for each company subject to the
administrative review. We then weight-averaged the rate received by each company by its share of total Brazilian exports
of the subject merchandise to the United States, including all companies, even those with de minimis and zero rates. Using
this methodology we calculated a country-wide rate of 0.03 percent, which is de minimis.

Analysis of Program

Income Tax Exemption for Export Earnings 

Although this program was eliminated on April 12, 1990, by Decree Law 8,034, Boley was authorized to use the income tax
exemption on export earnings under the terms of a contract with the Commission for the Granting of Fiscal Benefits to
Special Export Programs (BEFIEX) until its contract expired. Therefore, despite the fact that the income tax exemption for
export earnings was eliminated, Boley received residual benefits from the program during the review period. No other company under review
used this program.

Programs Found To Be Terminated

We find the following programs to be terminated and find that the respondents did not receive any residual benefits under
them during the period of review.

a. Preferential Export Financing under Resolution 950/1009 through CACEX (Carteira de Comercio Exterior) of the Bank of
  Brazil.


We verified that this program was terminated on August 30, 1990, by Banco Central Bank do Brasil Resolution No. 1,744.
See also Final Negative Countervailing Duty Determination: Silicon Metal from Brasil, 56 FR 26988, 26989 (June 12,
1991).

b. Preferential Export Financing under CIC-OPCRE 6-2-6. 

We verified that, on May 10, 1990, the functions of CACEX of the Bank of Brazil, which administered these export
financing loans, were absorbed by the Secretariat of Foreign Trade (SECEX). SECEX was not empowered to perform banking
operations and the export financing was discontinued.

c. Reduction of Industrial Products Tax (IPI) and Import Duties under Decreto No. 77.065 through BEFIEX (Comissao par
a Concessao de Beneficios a Programas Especials de Exportacao) and CIEX (Comissao para Incentivos a Exportacao).

We verified, that, on April 12, 1990, Decree Law 8,032 limited this program exclusively to imports made by the federal,
state, and municipal governments, territories, other political entities, and scientific institutions, thereby eliminating the
benefit to commercial enterprises.

d. Preferential Financing for National Trading Companies under Resolution 883 of the Banco Central do Brasil.

We verified that Banco Central do Brasil Resolution 1,744 revoked Resolution 883 on August 30, 1990, thereby
terminating this program. (See also, Certain Round-Shaped Agricultural Tillage Tools from Brazil; Preliminary
Results of Countervailing Duty Administration Review, 57 FR 10885, 10886 (March 31, 1992).)

e. Preferential Financing under Resolution 68 through FINEX. 

We verified that this program was terminated on April 5, 1990, after it failed to be reenacted within two years of April 5,
1988, the date on which Brazil's new constitution came into effect. Article 4 of the new constitution provided that all
programs requiring funding from the national treasury had to be reenacted within a two-year period or cease to exist.
Legislation to reenact preferential financing through FINEX was not passed and the program ceased to exist.

f. Preferential Financing under Resolution 579/83 through PROSIM and PROEX (BNDES).

We verified that preferential financing through PROSIM was terminated on February 4, 1985, by BNDES Resolution 607,
and that preferential financing through PROEX (BNDES) was terminated on September 2, 1991 by BNDES Resolution
762.

g. Preferential Financing for the Storage of Merchandise Destined for Export under Resolution 330/Portaria 130 of the
Banco Central do Brasil.

We verified that this program was terminated on August 21, 1984, by Central Bank Resolution 950.

Programs Found To Be Not Used

We find that respondents did not use following programs during the review period:

a. Preferential Financing for Industrial Enterprises by the Bank of Brazil

b. Preferential Financing under Resolution 578/83 through FUNPAR

c. Accelerated Depreciation for Brazilian Made Capital Goods

d. Green Yellow Drawback (Portaria 68/83)


Analysis of Comments Received

We gave interested parties an opportunity to comment on the preliminary results. We received no comments.

Final Results of Review

As a result of our review, we determine the net subsidy to be 0.03 percent ad valorem for all firms during the period
January 1, 1992 through December 31, 1992. In accordance with 19 CFR 355.7, any rate less than 0.50 percent ad valorem
is de minimis.

Therefore, the Department will instruct the Customs Service to liquidate, without regard to countervailing duties,
all shipments of this merchandise exported on or after January 1, 1992 and on or before December 31, 1992.
The Department will instruct the Customs Service to continue to suspend liquidation on all shipments of this merchandise
entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice. Because the net
subsidy is de minimus, however, the cash deposit on shipments entered, or withdrawn from warehouse, for consumption
on or after the date of publication of this notice in the Federal Register will be zero. These instructions shall remain in effect
until publication of the final results of the next administrative review.

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Return or Destruction of Proprietary Information

This notice serves as the only reminder to parties subject to Administrative Protective Order (APO) of their responsibility
concerning the return or destruction of proprietary information disclosed under APO in accordance with 19 CFR
355.34(d). Failure to comply is a violation of the APO.

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: April 19, 1995. 

Susan G. Esserman,

Assistant Secretary for Import Administration.