NOTICES
DEPARTMENT OF COMMERCE
[C-223-601]
Certain Cut Flowers From Costa Rica; Preliminary Results of
Countervailing Duty
Administrative Review
Friday, October 25, 1991
*55285
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 agreement suspending the
countervailing duty investigation on certain cut flowers from
Costa Rica. We preliminarily determine that the signatories have
complied with the terms of the suspension agreement during the
period January 1, 1990 through December 31, 1990. We invite
interested parties to comment on these preliminary results.
EFFECTIVE DATE: October 25, 1991.
FOR FURTHER INFORMATION CONTACT:Millie Mack or Barbara
Males, Office of Agreements Compliance, International
*55286
Trade Administration, U.S. Department of Commerce,
Constitution Avenue and 14th Street, NW., Washington, DC 20230;
telephone (202) 377-3793.
SUPPLEMENTARY INFORMATION:
Background
On January 17, 1991, the Department of Commerce (the
Department) published a notice of "Opportunity to Request an
Administrative Review" (56 FR 1793) of the agreement suspending
the countervailing duty investigation on certain cut flowers
from Costa Rica (52 FR 1356; January 13, 1987). On January 15,
1991, the respondent, the Association of Costa Rican Flower
Growers (ACOFLOR), requested an administrative review of the
suspension agreement. We initiated the review 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 (the Tariff
Act). The final results of the last administrative review in this case
were published in the Federal Register on January 22, 1991 (56 FR
2163).
Scope of Review
Imports covered by this review are shipments of miniature (spray)
carnations, standard carnations, and pompon chrysanthemums
from Costa Rica. This merchandise is currently classifiable under
the Harmonized Tariff Schedule (HTS) items 0603.10.30 and
0603.10.70. 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 six programs. The producers and exporters listed in
appendix A, accounting for more than eighty-five (85) percent of
total exports of subject merchandise from Costa Rica to the United
States, are signatories to the suspension agreement.
Analysis of Programs
(1) Tax Credit Certificates
Certificados do Abono Tributario (CAT) are bearer instruments
issued by the Central Bank of Costa Rica. The value of the CAT is
equal to 15 percent of the f.o.b. value of a firm's shipments of
non-traditional exports. The suspension agreement prohibits Costa
Rican producers and exporters of cut flowers from applying for or
receiving any benefits under the CAT program for shipments of the
subject merchandise to the United States. Effective the date of the
agreement (January 13, 1987), any unused certificates received on
prior shipments of the subject merchandise to the United States
were to be returned to the Central Bank of Costa Rica. We
determined during the administrative review that none of the
signatory producers and exporters received or possessed unused
CATs during the review period. Therefore, we preliminarily
determine that, with respect to this program, the signatories have
complied with the agreement.
(2) Certificates for Increasing Exports (CIEX)
This program provides grants to agricultural and agro-industrial
producers who increase exports from one year to the next. The
suspension agreement prohibits Costa Rican producers and
exporters of cut flowers from applying for or receiving any benefits
under the CIEX program. In August 1984, the program was
discontinued due to lack of funds, and the last benefits were paid in
1986. In 1988, the Costa Rican Congress approved a special
emission of bonds for the purpose of liquidating the outstanding
CIEX benefits for 1983/84, 1984/85, and 1985/86. During the
administrative review, we determined that none of the signatory
producers and exporters received benefits under this program. We
preliminarily determine that the signatories were in compliance
with the portion of the agreement covering this program.
(3) Income Tax Exemptions for Export Earnings
Firms in Costa Rica are eligible for a tax exemption for export
earnings. The suspension agreement prohibits Costa Rican
producers and exporters of cut flowers from applying for or
receiving any income tax exemptions for income derived from
exports of the subject merchandise to the United States. We
preliminarily determine that, with respect to this program, the
signatories have complied with the agreement.
(4) Exporter Credit for Sales Tax and Consumption Tax on Certain
Domestic Purchases
Exporting firms in Costa Rica are eligible for a rebate of sales taxes
and selective excise taxes (i.e., indirect taxes) paid on certain
domestically- purchased articles. The suspension agreement
prohibits Costa Rican producers and exporters of cut flowers from
applying for or receiving any rebates of sales taxes and selective
excise taxes on domestic purchases not physically incorporated
into any exports. During the administrative review, we determined
that none of the signatory producers and exporters applied for or
received any rebates of these taxes during the review period on
domestic purchases not physically incorporated into exports.
Therefore, we preliminarily determine that, with respect to this
program, the signatories have complied with the agreement.
(5) Exporter Exemptions for Taxes and Duties on Imports
Costa Rican firms with export contracts may be exempted from
paying duties and taxes on imported raw materials, intermediate
products and capital goods used to produce exported finished
products. The suspension agreement prohibits Costa Rican
producers and exporters of cut flowers from applying for or
receiving any exemptions from taxes, surcharges and duties (i.e.,
indirect taxes) on non-physically incorporated imports. We
determined that no exporter or producer received such exemptions
on any item without verification that the item in question has not
been or will not be used in the production of the subject
merchandise. The verification procedures are administered by the
Costa Rican Treasury, the Centro para la Promocion de las
Inversiones (the government agency responsible for granting
exemptions), and ACOFLOR. Therefore, we preliminarily determine
that the signatories are in compliance with the portion of the
agreement covering this program.
(6) Accelerated Depreciation
Exporting firms in Costa Rica may use accelerated depreciation for
new equipment if they are authorized for that benefit by the
Ministerio de Hacienda. The suspension agreement prohibits Costa
Rican producers and exporters of cut flowers from making use of
accelerated depreciation in the calculation of income taxes. No firm
claimed or used accelerated depreciation on its tax forms filed in
1990. Therefore, we preliminarily determine that the signatories
have complied with the terms of the suspension agreement.
Preliminary Results of Review
As a result of our review, we preliminarily determine that the
signators have complied with the terms of the suspension
agreement for the period January 1, 1990 through December 31,
1990.
The agreement can remain in force only as long as shipments from
the signatories account for at least 85 percent of imports of the
subject cut flowers into the United States. Our information indicates
that the 37 signatory companies accounted for
*55287
substantially all of the imports into the United States of this
merchandise during the period of review.
Interested parties may submit written comments on these
preliminary results within 30 days of the date of publication of this
notice and may request disclosure and/or a hearing within 10 days
after the date of publication. Any hearing, if requested, will be held
44 days after the date of publication or the first workday thereafter.
Rebuttal briefs and rebuttals to written comments, limited to issues
in those comments, must be filed not later than 37 days after the
date of publication. The Department will publish the final results of
this administrative review including the results of its analysis of
issues raised in any written comments.
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: October 17, 1991.
Eric I. Garfinkel,
Assistant Secretary for Import Administration.
Appendix A--List of Signatory Producers and Exporters
1. American Flower Corporation, S.A.
2. Flores del Cerro, S.A.
3. Agroflor de Paraiso, S.A.
4. Hermelink y Garces, S.A.
5. Tico Flor, S.A.
6. Cooexflo R.L.
7. Compania Agricola Flex, S.A.
8. Flor Bella, S.A.
9. Exporflor de Cartago, S.A.
10. Lianpa, S.A.
11. Floricultura de Costa Rica, S.A.
12. Vivero El Zamorano, S.A.
13. Flores de Iztaru, S.A.
14. Inversiones Costa Flor, S.A.
15. Coopeflor
16. Euroflores, S.A.
17. Flores y Follajes del Tirol, S.A.
18. Flores del Volcan CRP, S.A.
19. Goreza, S.A.
20. Llano Claro, S.A.
21. Ornamentales Cargil, S.A.
22. Floricultura La Colina, S.A.
23. Flores Intercontinentales, S.A.
24. Fincas Nabori, S.A.
25. Flores de Coris, S.A.
26. Florex, S.A.
27. C.R.B. Internacional, S.A.
28. Flores del Caribe, S.A.
29. Zurqui Flor de Costa Rica, S.A.
30. Rio Tapezco Ltda.
31. Jardin Botanico LDL de Costa Rica, S.A.
32. Tropiflor de la Montana, S.A.
33. Floricultura Santa Rosa, S.A.
34. Corporacion Rica Flor, S.A.
35. Intertec, S.A.
36. Accoreo, S.A.
37. Floricultura Cartaginesa
[FR Doc. 91-25668 Filed 10-24-91; 8:45 am]
BILLING CODE 3510-DS-M