66 FR 11269, February 23, 2001
DEPARTMENT OF COMMERCE
International Trade Administration
[C-475-819]
Certain Pasta From Italy: Final Results of the Third
Countervailing Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Final Results of Countervailing Duty Administrative
Review.
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SUMMARY: On August 8, 2000, the Department of Commerce published in the
Federal Register its preliminary results of the third administrative
review of the countervailing duty order on certain pasta from Italy for
the period January 1 through December 31, 1998.
Based on our analysis of the comments received, and the decision of
the Court of Appeals for the Federal Circuit in Delverde S.r.L. v.
United States, 202 F.3d 1360 (Fed. Cir. 2000) (``Delverde III''), the
Department has reexamined its change in ownership analysis and
methodology. As a result, we have made changes to Delverde's net
subsidy rate. We have also revised Rummo's and Riscossa's net subsidy
rate. Therefore, the final results differ from the preliminary results.
The final net subsidy rates for each reviewed company are listed below
in the section entitled ``Final Results of Review.''
EFFECTIVE DATE: February 23, 2001.
FOR FURTHER INFORMATION CONTACT: Craig Matney, Annika O'Hara, Sally
Hastings or Andrew Covington, AD/CVD Enforcement, Group I, Office 1,
Import Administration, U.S. Department of Commerce, Room 1780, 14th
Street and Constitution Avenue, N.W., Washington, D.C. 20230; telephone
(202) 482-1778, 482-3798, 482-3464 or 482-3534, respectively.
SUPPLEMENTARY INFORMATION:
Applicable Statute and Regulations
Unless otherwise indicated, all citations to the statute are
references to the provisions of the Tariff Act of 1930, as amended by
the Uruguay Round Agreements Act (``URAA''), effective January 1, 1995
(``the Act''). The Department is conducting this administrative review
in accordance with section 751(a) of the Act. In addition, unless
otherwise indicated, all citations to the Department's regulations are
to the regulations codified at 19 CFR 351 (1998).
Background
On July 24, 1996, the Department of Commerce (``the Department'')
published in the Federal Register (61 FR 38544) the countervailing duty
order on certain pasta from Italy.
In accordance with 19 CFR 351.213(b), this review of the order
covers the following producers or exporters of the subject merchandise
for which a review was specifically requested: Delverde S.p.A.
(``Delverde''); Tamma Industrie Alimentari S.r.L. (``Tamma''); Rummo
S.p.A. Molino e Pastaficio (``Rummo''); and Pastificio Riscossa F.lli
Mastromauro S.r.L. (``Riscossa''). La Molisana, which had requested to
be included in this review, withdrew its request on October 14, 1999.
Consequently, the Department rescinded this review with respect to La
Molisana. (See Certain Pasta from Italy: Preliminary Results and
Partial Rescission of Countervailing Duty Administrative Review, 65 FR
48479 (August 8, 2000) (``Preliminary Results'')). This review covers
29 programs.
Since the publication of the Preliminary Results the following
events have occurred. On August 14, 2000, the European Union (``EU'')
submitted its case brief. On September 7, 2000, the Government of Italy
(``GOI''), the petitioners, and respondents Delverde and Tamma
submitted case briefs. Petitioners and respondents Delverde and Tamma
filed rebuttal briefs on September 18, 2000. Respondents Rummo and
Riscossa did not file case or rebuttal briefs.
On October 5, 2000, we issued a questionnaire to Delverde regarding
its change in ownership; we received Delverde's response to this
questionnaire on October 23, 2000. On October 13, 2000, we published in
the Federal Register a notice extending the due date for issuing these
final results to February 5, 2001 (see Certain Pasta from Italy: Notice
of Extension of Time Limit for the 1998 Countervailing Duty
Administrative Review, 65 FR 60911).
On December 27, 2000, the Department placed on the record of the
instant case a copy of Delverde's response to a supplemental
questionnaire regarding its change of ownership that it had submitted
in the remand proceeding pursuant to the September 27, 2000 order from
the U.S. Court of International Trade (``CIT'') in Delverde III. The
Department did not conduct a hearing in this review because none was
requested.
Scope of Review
Imports covered by this review are shipments of certain non-egg dry
pasta in packages of five pounds (2.27 kilograms) or less, whether or
not enriched or fortified or containing milk or other optional
ingredients such as chopped vegetables, vegetable purees, milk, gluten,
diastases, vitamins, coloring and flavorings, and up to two percent egg
white. The pasta covered by this scope is typically sold in the retail
market, in fiberboard or cardboard cartons, or polyethylene or
polypropylene bags, of varying dimensions.
Excluded from the scope of this review are refrigerated, frozen, or
canned pastas, as well as all forms of egg pasta, with the exception of
non-egg dry pasta containing up to two percent egg white. Also excluded
are imports of organic pasta from Italy that are accompanied by the
appropriate certificate issued by the Instituto Mediterraneo Di
Certificazione (``IMC''), by Bioagricoop Scrl, by QC&I International
Services, by Ecocert Italia, or by the Conzorzio per il Controllo dei
Prodotti Biologici.
The merchandise subject to review is currently classifiable under
item 1902.19.20 of the Harmonized Tariff Schedule of the United States
(``HTSUS''). Although the HTSUS subheading is provided for convenience
and customs purposes, the written description of the merchandise
subject to the order is dispositive.
Scope Rulings
The Department has issued the following scope rulings to date:
(1) On August 25, 1997, the Department issued a scope ruling that
multicolored pasta, imported in kitchen display bottles of decorative
glass that are sealed with cork or paraffin and bound with raffia, is
excluded from the scope of the countervailing duty order. (See August
25, 1997 memorandum from Edward Easton to Richard Moreland, which is on
file in the Central Records Unit (``CRU'') in Room B-099 of the main
Commerce building.)
(2) On July 30, 1998, the Department issued a scope ruling, finding
that multipacks consisting of six one-pound packages of pasta that are
shrink-wrapped into a single package are within the scope of the
countervailing duty order. (See July 30, 1998 letter from Susan H.
Kuhbach, Acting Deputy Assistant Secretary for Import Administration,
to Barbara P. Sidari, Vice President, Joseph A. Sidari Company, Inc.,
which is on file in the CRU.)
(3) On October 26, 1998, the Department self-initiated a scope
inquiry to determine whether a package weighing over five pounds as a
result of
[[Page 11270]]
allowable industry tolerances may be within the scope of the
countervailing duty order. On May 24, 1999, we issued a final scope
ruling finding that, effective October 26, 1998, pasta in packages
weighing or labeled up to (and including) five pounds four ounces is
within the scope of the countervailing duty order. (See May 24, 1999
memorandum from John Brinkmann to Richard Moreland, which is on file in
the CRU.)
Period of Review
The period of review (POR) for which we are measuring subsidies is
from January 1 through December 31, 1998.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this administrative review are addressed in the February 5, 2001 Issues
and Decision Memorandum (``Decision Memorandum'') from Susan H.
Kuhbach, Acting Deputy Assistant Secretary, Import Administration, to
Bernard T. Carreau, fulfilling the duties of Assistant Secretary for
Import Administration, which is hereby adopted by this notice. Attached
to this notice as Appendix I is a list of the issues which parties have
raised and to which we have responded in the Decision Memorandum.
Parties can find a complete discussion of all issues raised in this
review and the corresponding recommendations in this public memorandum
which is on file in the Central Records Unit, Room B-099 of the
Department. In addition, a complete version of the Decision Memorandum
can be accessed directly on the Internet at https://enforcement.trade.gov/frn/
under the heading ``Italy.'' The paper copy and electronic version of
the Decision Memorandum are identical in content.
Changes Since the Preliminary Results
Based on our analysis of comments received, and the Department's
revised change-in-ownership approach based on the Court's ruling in
Delverde III, we have made certain changes to Delverde's net subsidy
rate. Also, based on our analysis of the GOI's questionnaire responses,
one of which was received after the Preliminary Results, we have
revised our findings and calculation methodology for interest subsidies
received by Rummo under Law 598/94. These changes are discussed in the
relevant sections of the Decision Memorandum. Lastly, we revised
Riscossa's overall net subsidy rate due to a clerical error discovered
by the Department since the Preliminary Results. See February 5, 2001
Calculation Memorandum for Riscossa, a public version of which is on
file in room B-099 of the Department's main building.
Final Results of Review
In accordance with 19 CFR 351.221(b)(4)(i), we calculated an
individual subsidy rate for each producer/exporter subject to this
administrative review. For the period January 1 through December 31,
1998, we determine the net subsidy rates for producers/exporters under
review to be those specified in the chart shown below.
------------------------------------------------------------------------
Ad valorem rate
Company percent
------------------------------------------------------------------------
Delverde S.p.A./Delverde S.r.L....................... 4.04
Tamma Industrie Alimentari S.r.L..................... 3.63
Pastificio Riscossa F.lli Mastromauro S.r.L.......... 1.13
Rummo S.p.A. Molino e Pastificio..................... 0.71
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We will instruct the U.S. Customs Service (``Customs'') to assess
countervailing duties as indicated above. The Department will also
instruct Customs to collect cash deposits of estimated countervailing
duties in the percentage detailed above of the f.o.b. invoice prices on
all shipments of the subject merchandise from the producers/exporters
under review, entered, or withdrawn from warehouse, for consumption on
or after the date of publication of the final results of this
administrative review.
The cash deposit rates for all companies not covered by this review
are not changed by the results of this review. Thus, we will instruct
Customs to continue to collect cash deposits for non-reviewed
companies, except Barilla G. e R. F.lli S.p.A. (``Barilla'') and Gruppo
Agricoltura Sana S.r.L. (``Gruppo'') (which were excluded from the
order during the investigation), at the most recent rate applicable to
the company. Accordingly, the cash deposit rates that will be applied
to non-reviewed companies covered by this order are those established
in the Notice of Countervailing Duty Order and Amended Final
Affirmative Countervailing Duty Determination: Certain Pasta from
Italy, 61 FR 38544 (July 24, 1996), Certain Pasta from Italy: Final
Results of Countervailing Duty Administrative Review, 63 FR 43905
(August 17, 1998), or Amendment of Final Results of Countervailing Duty
Administrative Review, 64 FR 51293 (September 22, 1999), whichever
notice provides the most recently published countervailing duty rates
for companies not reviewed in this administrative review. These rates
shall apply to all non-reviewed companies until a review of a company
assigned these rates is completed. In addition, for the period January
1 through December 31, 1998, the assessment rates applicable to all
non-reviewed companies covered by these orders are the cash deposit
rates in effect at the time of entry, except for Barilla and Gruppo
(which were excluded from the order during the original investigation).
This notice serves as a reminder to parties subject to
administrative protective order (``APO'') of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.301. Timely written notification of
return or destruction of APO materials or conversion to judicial
protective order is hereby requested. Failure to comply with the
regulations and the terms of an APO is a sanctionable violation.
This administrative review and notice are in accordance with
section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)).
Dated: February 5, 2001.
Timothy J. Hauser,
Acting Under Secretary for International Trade.
Appendix I--Issues discussed in the Decision Memorandum
I. Methodology and Background Information
1. Change in Ownership
2. Subsidies Valuation Information
A. Benchmarks for Long-term Loans and Discount Rates
B. Allocation Period
C. Benefits to Mills
3. Affiliated Parties
II. Analysis of Program
1. Programs Previously Determined to Confer Subsidies
[[Page 11271]]
A. Law 64/86 Industrial Development Grants
B. Law 488/92 Industrial Development Grants
C. Law 183/76 Industrial Development Grants
D. Industrial Development Loans Under Law 64/86
E. Law 304/90 Export Marketing Grants
F. Social Security Reductions and Exemptions-Sgravi
G. Law 598/94 Interest Subsidies
H. Law 236/93 Training Grants
I. European Social Fund
J. Export Restitution Payments
2. Programs Determined Not To Confer Countervailable Subsidies in
the POR
A. Social Security Reductions and Exemptions-Fiscalizzazione
3. Programs Determined to Be Not Used During the POR
A. Law 113/86 Training Grants
B. Law 64/86 VAT Reductions
C. Law 357/94 Tax Benefits
D. Local Income Tax (``ILOR'') Exemptions
E. Remission of Taxes on Export Credit Insurance under Article
33 of Law 227/77
F. Export Credits under Law 227/77
G. Capital Grants under Law 675/77
H. Retraining Grants under Law 675/77
I. Interest Contributions on Bank Loans under Law 675/77
J. Interest Grants Financed by IRI Bonds
K. Preferential Financing for Export Promotion under Law 394/81
L. Corporate Income Tax (``IRPEG'') Exemptions
M. Urban Redevelopment under Law 181
N. Debt Consolidation Law 341/95
O. Interest Contributions under Law 1329/65
P. Grant Received Pursuant to the Community Initiative
Concerning the Preparation of Enterprises for the Single Market (``PRISMA'')
Q. European Agricultural Guidance and Guarantee Fund (``EAGGF'')
R. European Regional Development Fund (``ERDF'')
III. Analysis of Comment
Comment 1: European Social Fund
Comment 2: Change of Ownership Methodology in Preliminary
Determination
Comment 3: Interpretation of Delverde III
Comment 4: Use of the Successor-in-Interest Test
Comment 5: Shares v. Assets
Comment 6: Subsidies to Delverde/Analysis of Facts on the Record
[FR Doc. 01-4535 Filed 2-22-01; 8:45 am]
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