NOTICES DEPARTMENT OF COMMERCE [C-557-804] Final Negative Countervailing Duty Determination; Certain Steel Wire Nails From Malaysia Tuesday, September 5, 1989 AGENCY: Import Administration, International Trade Administration, Commerce. ACTION: Notice. SUMMARY: We 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 in Malaysia of certain steel wire nails ("the subject merchandise"), as described in the Scope of Investigation section of this notice. EFFECTIVE DATE: September 5, 1989. FOR FURTHER INFORMATION CONTACT:Vincent Kane or Carole Showers, Office of Countervailing Investigations, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 377-2815 or 377-3217. SUPPLEMENTARY INFORMATION: Final Determination Based on our investigation, we determine that no benefits which constitute bounties or grants within the meaning of section 303 of the Tariff Act of 1930, as amended (the Act), are being provided to manufacturers, producers, or exporters in Malaysia of the subject merchandise. Case History Since publication of the Preliminary Negative Countervailing Duty Determination: Certain Steel Wire Nails from Malaysia (54 FR 26229, June 22, 1989), the following events have occurred. From July 17 to July 21, 1989, we conducted verification in Malaysia of the questionnaire responses of the Government of Malaysia and South Engineers Sdn. Bhd. (South Engineers). On August 11, 1989, we received a case brief filed on behalf of respondents. Scope of Investigation The United States has developed a system of tariff classification based on the international harmonized system of customs nomenclature. On January 1, 1989, the U.S. tariff schedules were fully converted to the Harmonized Tariff Schedule (HTS), as provided for in section 1201 et seq. of the Omnibus Trade and Competitiveness Act of 1988. All merchandise entered, or withdrawn from warehouse, for consumption on or after that date is now classified solely according to the appropriate HTS sub-headings. The HTS sub-headings are provided for convenience and Customs purposes. The written description remains dispositive. The products covered by this investigation are certain steel wire nails from Malaysia. These nails are: steel wire nails of one-piece construction as currently provided for in HTS items 7317.00.5505, 7317.00.5510, 7317.00.5520, 7317.00.5530, 7317.00.5540, 7317.00.5550, 7317.00.5560, 7317.00.5570, 7317.00.5580, 7317.00.5590, and 7317.00.6560; steel wire nails of two-piece construction, as currently provided for in HTS item 7317.00.7500; and steel wire nails with lead heads, as currently provided for in HTS item 7317.00.7500. Analysis of Programs For purposes of this final determination, the period for which we are measuring bounties or grants ("the review period") is calendar year 1988, which corresponds to the fiscal year of the respondent company. Based upon our analysis of the petition, the responses to our questionnaires, verification, and respondents' case brief, we determine the following: I. Programs Determined Not To Be Used We determine that manufacturers, producers, or exporters in Malaysia of the subject merchandise did not receive benefits during the review period for exports of the subject merchandise to the United States under the programs listed below. With the exception of the Double Deduction of Insurance Premiums for Importers, these programs were described in the preliminary determination in this investigation: A. Export Tax Incentives 1. Abatement of Taxable Income Based on the Ratio of Export Sales to Total Sales and an Abatement of Five Percent of the Value of Indigenous Materials Used in Exports 2. Allowance of a Percentage of Net Taxable Income Based on the F.O.B. Value of Export Sales 3. Allowance of Taxable Income of Five Percent of the F.O.B. Value of Export Sales for Trading Companies Exporting Malaysian-Made Products 4. Double Deduction for Export Credit Insurance Payments 5. Double Deduction for Export Promotion Expenses 6. Industrial Building Allowance B. Other Export Incentives 1. Export Credit Refinancing 2. Export Insurance Program C. Other Tax Incentives 1. Pioneer Status Under the Investment Incentives Act of 1968 2. Pioneer Status Under the Promotion of Investments Act of 1986 3. Investment Tax Allowance 4. Double Deduction for Operational Expenses 5. Abatement of Five Percent of Adjusted Income D. Medium- and Long-Term Government Financing Medium- and long-term financing provided by the following institutions: - the Industrial Bank of Malaysia (formerly the Industrial Development Bank of Malaysia) - the Development Bank of Malaysia - the Borneo Development Corporation - the Sabah Development Bank E. Double Deduction of Insurance Premiums for Importers Although not alleged by petitioner and not included in our notice of initiation or preliminary determination, we found during verification that South Engineers claimed a double deduction for insurance premiums on imports on its 1988 income tax return. The double deduction is authorized under the provisions of Income Tax (Deduction of Insurance Premiums for Importers) Rule 1982. The rule provides that the double *36841 deduction may be taken by importers only if insurance is purchased from a company incorporated in Malaysia. In the case of South Engineers, we verified that the insurance premiums for which a double deduction was claimed were for imports of merchandise entirely unrelated to the manufacture or exportation of the subject merchandise. Therefore, we determine that, with respect to the subject merchandise, the double deduction of insurance premiums for importers was not used. Verification We verified the information used in making our final determination in accordance with section 776(b) of the Act. During verification we followed standard verification procedures including meeting with government and company officials, examining relevant documents and accounting records, tracing information in the responses to source documents, accounting ledgers and financial statements, and collecting additional information that we deemed necessary for making our final determination. Our verification results are outlined in detail in the public versions of the verification reports, which are on file in the Central Records Unit (Room B-099) of the Main Commerce Building. This determination is published pursuant to section 705(d) of the Act (19 U.S.C. 1671d(d)). Dated: August 23, 1989. Eric I. Garfinkel, Assistant Secretary for Import Administration. [FR Doc. 89-20730 Filed 9-1-89; 8:45 am] BILLING CODE 3510-DS-M