59 FR 5176

                                   NOTICES

                           DEPARTMENT OF COMMERCE

                                  (C-508-605)

  Industrial Phosphoric Acid From Israel; Final Results of Countervailing Duty
                              Administrative Review

                            Thursday, February 3, 1994

*5176

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

ACTION: Notice of final results of countervailing duty administrative review.

SUMMARY: On October 28, 1993, the Department of Commerce published the preliminary results
of its administrative review of the countervailing duty 
order on industrial phosphoric acid from Israel (58 FR 57986). We have now completed
the review and determine the net subsidy to be 6.98 percent ad valorem for all firms during the
period January 1, 1991 through December 31, 1991.

EFFECTIVE DATE: February 3, 1994.

FOR FURTHER INFORMATION CONTACT: Brian Albright or Cameron Cardozo, Office of
Countervailing Compliance, International Trade Administration, U.S. Department of
Commerce, Washington, DC 20230; telephone: (202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

On October 28, 1993, the Department of Commerce (the Department) published in the Federal
Register (58 FR 57986) the preliminary results of its administrative review of the
countervailing duty order on industrial phosphoric acid from Israel (52 FR
31057; August 19, 1987) covering the period January 1, 1991 through December 31, 1991. The
Department has now completed this administrative review in accordance with section 751 of the
Tariff Act of 1930, as amended (the Act).

Scope of Review

Imports covered by this review are shipments of Israeli industrial phosphoric acid. During
the review period, such merchandise was classifiable under item number 2809.20.00 of the
Harmonized Tariff Schedule (HTS). The HTS item number is provided for convenience and Customs
purposes. The written description remains dispositive.

The review covers the period January 1, 1991 through December 31, 1991 and nine programs.
Negev Phosphates, Ltd. (NPL), which merged with Rotem Fertilizers Ltd. on December 31, 1991
after operating independently throughout the review period, was the only known producer
exporting the subject merchandise from Israel to the United States during the 1991 review
period.

Analysis of Comments Received

We gave interested parties an opportunity to comment on the preliminary results. We received a
written comment from the respondents, the Government of Israel (GOI) and NPL, and a written
rebuttal comment from the petitioners, the Monsanto Company and FMC Corporation.

Comment: Respondents argue that the cash deposit rate should be reduced by the amount of
benefit attributable to the Exchange Rate Risk Insurance Scheme (EIS) because the program was
terminated prior to the publication of these final results. The GOI and NPL state that most EIS
claims will be paid by the end of 1993 as indicated in the GOI response to the Department's
questionnaire. The GOI and NPL also point to the reduction in benefits that exporters received
from this program in this review period compared to those received in the prior administrative
review. Thus, respondents claim that it is unreasonable to base the deposit rate for future entries
on benefits received in 1991, given the program's declining 

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benefits and termination with limited residual benefits.

Petitioners point out that the exact timing of NPL's receipt of benefits under the EIS will depend on
variables such as the time necessary for shipment of the goods and EIS processing of the claim.
According to petitioners, these uncertainties preclude the determination of a fixed date for actual
termination of benefits to be received by NPL. As a result, EIS benefits should continue to be
reflected in the cash deposit rate.

Department's Position: We disagree with the respondents. The Department's regulations require the
Department to instruct the Customs Service to collect a cash deposit of estimated
countervailing duties on future entries. The Department normally uses as an estimate of
countervailing duties on future 
entries the assessment rate found in the final results of review (see 19 CFR 355.22(c)(10)).
Although the EIS program was terminated, it is clear that some payments may continue to be
received beyond the date of EIS termination by exporters who entered into EIS contracts before
termination of the program. In situations in which a government terminates a program but residual
benefits may continue to be bestowed under the terminated program, it is the Department's
practice not to adjust the deposit rate. See Cotton Yarn from Brazil; Preliminary Results of
Administrative Review (56 FR 47456, 47457; September 19, 1991) and Cotton Yarn from Brazil;
Final Results of Administrative Review (57 FR 1454; January 14, 1992). In order to adjust the cash
deposit rate as a result of a program- wide change, the Secretary must be able to measure the
change in the level of countervailable subsidies provided under the program in question (see
section 355.50(a)(2) and (d)(1) of Countervailing Duties; Notice of Proposed Rulemaking
and Request for Public Comments (54 FR 23366; May 31, 1989). Therefore, because residual
benefits from the EIS program may continue to be provided after the date of our preliminary
results and cannot be measured, we have not adjusted the cash deposit rate as a result of the
termination of the EIS program.

Final Results of Review

After reviewing all of the comments received, we determine the net subsidy to be 6.98 percent ad
valorem for all companies during the period January 1, 1991 through December 31, 1991.
Therefore, the Department will instruct the Customs Service to assess countervailing duties
of 6.98 percent of the f.o.b. invoice price on all shipments of this merchandise exported on or after
January 1, 1991 and on or before December 31, 1991.

Further, the Department will instruct the Customs Service to collect a cash deposit of 6.98 percent
of the f.o.b. invoice price on all shipments of this merchandise entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this notice.
This cash deposit shall remain in effect until publication of the final results of the next
administrative review.

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 28, 1994. 

Joseph A. Spetrini,

Acting Assistant Secretary for Import Administration. 

(FR Doc. 94-2449 Filed 2-2-94; 8:45 am)

BILLING CODE 3510-DS-P