(Cite as: 50 FR 2073)

NOTICES

DEPARTMENT OF COMMERCE

International Trade Administration

[C-484-015]

Tomato Products From Greece; Final Results of Administrative Review and

Revocation of Countervailing Duty Order

Tuesday, January 15, 1985



*2073 AGENCY: International Trade Administration/Import Administration, Commerce.

ACTION: Notice of final results of administrative review and revocation of countervailing duty order.

SUMMARY: On March 29, 1984, the Department of Commerce published the preliminary results of its administrative review of the countervailing duty order on tomato products from Greece. The review covers the period January 1, 1982, through December 31, 1982.

We gave interested parties an opportunity to comment on the preliminary results. After review of all of the comments received, the final results are the same as the preliminary results.

On October 29, 1984, the International Trade Commission notified the Department that an industry in the United States would not be injured by reason of imports of Greek tomato products if the order were revoked. The Department consequently is revoking the countervailing duty order. All entries of this merchandise made on or after March 22, 1982, shall be liquidated without regard to countervailing duties.

EFFECTIVE DATE: January 15, 1985.

FOR FURTHER INFORMATION CONTACT:Al Jemmott or Philip Oterness, Office of Compliance, International Trade Administration, U.S. Department of Commerce, Washington, D.C. 20230; telephone: (202) 377-2786.

SUPPLEMENTARY INFORMATION:

Background

On March 29, 1984, the Department of Commerce ("the Department") published in the Federal Register (49 FR 12291) the preliminary results of its administrative review of the countervailing duty order on tomato products from Greece (37 FR 6360, March 28, 1972). The Department has now completed that administrative review, in accordance with section 751 of the Tariff Act of 1930 ("the Tariff Act").

On March 22, 1982, the International Trade Commission ("the ITC") notified the Department that the Government of Greece had requested an injury determination for this order under section 104(b) of the Trade Agreements Act of 1979 ("the TAA"). It was not necessary for the Department, upon notification by the ITC, to suspend liquidation of entries of the merchandise pursuant to that section of the TAA, since previous suspensions remained in effect.

On October 29, 1984, the ITC notified the Department of its determination (49 FR 44561) that an industry in the United States would not be materially injured, or threatened with material injury, by reason of imports of Greek tomato products if the countervailing duty order were revoked.

Scope of Review

Imports covered by the review are shipments of Greek tomato paste and sauce, peeled tomatoes and tomato juice. Such merchandise is currently classifiable under items 141.6520, 141.6540, 141.6600 and 166.3000 of the Tariff Schedules of the United States Annotated. The review covers the period January 1, 1982, through December 31, 1982, and one program: "production aid" to processors of tomatoes.

Analysis of Comments Received

We gave interested parties an opportunity to comment on our preliminary results. We received written comments from one importer, S.A. Laraja & Sons, Inc.

Comment 1: Laraja argues that the process applied by the Department in administering the countervailing duty law is unfair, unreasonable and constitutes a threat to the solvency of importers operating in good faith. It is most threatening for a firm which essentially acts as a broker, creating a liability in excess of the commission earned on a bona fide commercial operation completed two years previously.

Department's Position: The administrative review process was established by the provisions of the TAA and the Commerce Department regulations. Under that body of law, at the time of importation, importers post only a cash deposit of estimated countervailing duty. The final amount of countervailing duty to be assessed can only be determined after completion of the subsequent administrative review.

Comment 2: Laraja argues that the Department has not realistically taken cognizance of the pricing of Greek tomato products since 1982.

Department's Position: For purposes of this law, the calculation of the countervailable benefit is based on the net subsidy granted to the Greek tomato products processors and not on the processors' subsequent prices to their consumers.

Comment 3: Laraja states that the countervailing duty order on tomato products from Greece concerned an export subsidy instituted and financed by the Greek government. Between 1972 and 1981 this subsidy continued to be in effect. When Greece became a member of the European Communities ("the EC") on January 1, 1981, the Greek national export subsidy was replaced by a "production aid" program funded by EC grants. The Department "essentially is countervailing against an export subsidy which has to all intents and purposes expired."

Department's Position: Subsidy programs discovered during a proceeding are countervailable, even if not included in the original investigation. Although the program originally investigated in this case no longer exists, it has been replaced with a second countervailable program.

Comment 4: Relying on the International Trade Commission's June 1980, negative injury determination on EC tomato products, and the fact that the "production aid" afforded to Greek tomato processors is funded by the same EC source as that to Italian and French tomato growers and processors, Laraja suggests that no countervailing duties should be imposed on Greek tomato products.

Department's Position: The Department has addressed this issue in a previous administrative review of this order (48 FR 30420, July 1, 1983). Because the ITC has now reached a negative injury determination on this order, we are revoking the order effective March 22, 1982.

*2074 Final Results of the Review

After consideration of all of the comments received, the final results of our review are the same as those presented in the preliminary results. We determine that the net subsidies conferred on Greek tomato products during 1982 are those shown in the appendix to this notice.

The Department will instruct the Customs Service to assess countervailing duties, as indicated in the appendix, on all shipments of Greek tomato products exported on or after January 1, 1982, and entered, or withdrawn from warehouse, for consumption before March 22, 1982.

As a result of the ITC finding of no injury, the Department is revoking the countervailing duty order concerning Greek tomato products effective on or after March 22, 1982, the date the ITC notified the Department of the request for a section 104(b) injury determination. The Department will further instruct the Customs Service to proceed with liquidation of all unliquidated entries of this merchandise entered, or withdrawn from warehouse, for consumption on or after March 22, 1982, without regard to countervailing duties and to refund any estimated countervailing duties collected with respect to those entries.

This administrative review, revocation, and notice are in accordance with section 751(a)(1) of the Tariff Act (19 U.S.C. 1675(a)(1)), section 104(b)(4)(B) of the TAA (19 U.S.C. 1671 note), and s 355.41 of the Commerce Regulations (19 CFR 355.41).

Dated: January 8, 1985.

Alan F. Holmer,

Deputy Assistant Secretary for Import Administration.



Appendix

For January 1, 1982 through December 31, 1982.

(1) Tomato Paste and Sauce:

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Concentration (percent)        Drachmas per gross kilogram (packing size)

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 Not less     But less   More than  From 1.5    From 0.7   From 0.25  0.15 and

   than         than       1.5 kg     to 0.7     to 0.25     to 0.15    less

                                       kg          kg

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12 ................. 14      10.16      11.91       12.88      15.28      17.56

14 ................. 16      11.10      13.01       14.07      15.61      19.18

16 ................. 18      12.03      14.11       15.26      18.49      20.80

18 ................. 20      12.99      15.23       16.47      19.96      22.45

20 ................. 22      13.92      16.33       17.66      21.39      24.06

22 ................. 24      14.86      17.42       18.85      22.83      25.68

24 ................. 26      15.80      18.52       20.04      24.27      27.30

26 ................. 28      16.73      19.62       21.22      25.71      28.92

28 ................. 30      17.76      20.72       22.41      27.15      30.54

30 ................. 32      18.61      21.81       23.60      28.59      32.16

32 ................. 34      19.54      22.91       24.79      30.03      33.78

34 ................. 36      20.48      24.01       25.97      31.47      35.39

36 ................. 38      21.42      25.11       27.16      32.91      37.01

38 ................. 40      22.37      26.23       28.37      34.37      38.66

40 ................. 42      23.31      27.33       29.56      35.81      40.28

42 ................. 93      24.24      28.43       30.75      37.25      41.90

93 ................ 100      68.91      68.91       68.91      68.91      68.91

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(2) Tomato Juice: 5.62 drachmas per gross kilogram.

(3) Peeled Tomatoes: San Marzano Variety--9.19 drachmas per gross kilogram.

Roma and Similar Varieties--7.02 drachmas per gross kilogram.

[FR Doc. 85-1080 filed 1-14-85; 8:45 am]

BILLING CODE 3510-05-M