[Federal Register: December 12, 2001 (Volume 66, Number 239)]
[Page 64214-64216]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-475-819]
Certain Pasta From Italy: Final Results of the Fourth
Countervailing Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of final results of countervailing duty administrative
review.
-----------------------------------------------------------------------
SUMMARY: The Department of Commerce is issuing the final results of the
fourth administrative review of the countervailing duty order on
certain pasta from Italy for the period January 1 through December 31,
1999.
Based on information received since the preliminary results and our
analysis of the comments received, the Department of Commerce, ``the
Department,'' has revised the net subsidy rates for Agritalia S.r.L.,
Pastificio Antonio Pallante S.r.L. (``Pallante''), N. Puglisi & F.
Industria Paste Alimentari S.p.A. (``Puglisi''), and Pastificio
Riscossa F.lli Mastromauro S.r.L. (``Riscossa''). Therefore, the final
results differ from the preliminary results. The final net subsidy
rates for the reviewed companies are listed below in the section
entitled ``Final Results of Review.''
EFFECTIVE DATE: December 12, 2001.
FOR FURTHER INFORMATION CONTACT: Craig Matney, Sally Hastings, Andrew
Covington, or Meg Weems, AD/CVD Enforcement, Group I, Office 1, Import
Administration, U.S. Department of Commerce, Room 1780, 14th Street and
Constitution Avenue, NW, Washington, DC 20230; telephone (202) 482-
1778, 482-3464, 482-3534, and 482-2613, 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''). In addition, unless otherwise indicated, all citations
to the Department's regulations are to 19 CFR part 351 et seq. (2000).
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: Agritalia; F.lli De
Cecco di Filippo Fara S. Martino S.p.A. (``De Cecco''); Delverde S.p.A.
(``Delverde''); De Matteis Agroalimentare S.p.A. (``De Matteis'');
Pallante; Pastificio Maltagliati S.p.A. (``Maltagliati''); P.A.M.
S.r.L.--Prodotti Alimentari Meridionali (``PAM'') (PAM is also
responding for Pastificio Liguori dal 1820, S.p.A.); Riscossa; Puglisi;
and Rummo S.p.A. Molino e Pastificio (``Rummo'').
Based on withdrawals of the requests for reviews, we rescinded this
administrative review for Arrighi S.p.A. Industrie Alimentari; Audisio
Industrie Alimentari de Capitanata, S.p.A.; Commercio-Rappresentanze-
Export S.r.L.; Indalco; Industria Alimentare Colavita, S.p.A.; Isola
del Grano S.r.L.; Italpast S.p.A.; Italpasta S.r.L.; Labor S.r.L.; La
Molisana Alimentari S.p.A.; Molino e Pastificio; Pastificio Campano,
S.p.A.; Pastificio di Matino Gaetano & F.lli S.r.L.; Pastificio
Fabianelli, S.p.A.; Pastificio F.lli Pagani; Pastificio Guido Ferrara;
and, Tamma Industrie Alimentari di Capitanata, S.r.L. (See, Certain
Pasta from Italy: Preliminary Results and Partial Rescission of
Countervailing Duty Administrative Review, 66 FR 40987 (August 6, 2001)
(``Preliminary Results'').)
Since the publication of the Preliminary Results the following
events
[[Page 64215]]
have occurred. Supplemental questionnaires were sent to Rummo on August
30, 2001; Puglisi on September 7, 2001; Delverde, Pallante, Riscossa
and the Government of Italy (``GOI'') on September 27, 2001; and
Agritalia on October 2, 2001. Responses were received from Rummo on
September 21, 2001; Pallante, Riscossa, GOI and Agritalia on October 9,
2001; and Delverde on October 10, 2001.
Case briefs were submitted on October 22, 2001, by Agritalia,
Delverde, DeMatteis, Pallante, Puglisi, and Riscossa. 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 Istituto Mediterraneo Di
Certificazione, Bioagricoop Scrl, QC&I International Services, Ecocert
Italia, Consorzio per il Controllo dei Prodotti Biologici, Associazione
Italiana per l'Agricoltura Biologica, or Codex S.r.L.
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 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.)
The following scope ruling is pending:
On April 27, 2000, the Department self-initiated an anti-
circumvention inquiry to determine whether Pagani's importation of
pasta in bulk and subsequent repackaging in the United States into
packages of five pounds or less constitutes circumvention, with respect
to the antidumping and countervailing duty orders on pasta from Italy
pursuant to section 781(a) of the Act and 19 CFR 351.225(b). See
Certain Pasta from Italy: Notice of Initiation of Anti-circumvention
Inquiry of the Antidumping and Countervailing Duty Orders, (May 5,
2000).
Period of Review
The period of review (``POR'') for which we are measuring subsidies
is from January 1 through December 31, 1999.
Analysis of Comments Received
All issues raised in the case briefs by parties to this
administrative review are addressed in the December 4, 2001 Issues and
Decision Memorandum (``Decision Memorandum'') from Richard W. Moreland,
Deputy Assistant Secretary, Import Administration, to Bernard Carreau,
Acting 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 CRU, Room B-099 of
the Department. In addition, a complete version of the Decision
Memorandum can be accessed directly on the Internet at http://
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 information received subsequent to the Preliminary Results
and our analysis of comments submitted in the case briefs, we have made
changes in our calculation of the net subsidies for Agritalia,
Pallante, Puglisi and Riscossa. These changes are discussed in the
relevant sections of the Decision Memorandum.
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,
1999, we determine the net subsidy rates for producers/exporters under
review to be those specified in the chart shown below.
------------------------------------------------------------------------
Ad valorem
Company rate
(percent)
------------------------------------------------------------------------
Agritalia S.r.L............................................ 2.92
F.lli De Cecco di Filippo Fara San Martino, S.p.A.......... 2.21
Delverde S.p.A./Delverde S.r.L............................. 3.27
De Matteis Agroalimentare S.p.A............................ 2.33
Pastificio Antonio Pallante S.r.L.......................... 4.92
Pastificio Maltagliati S.p.A............................... 3.85
P.A.M. S.r.L.--Prodotti Alimentari Meridionali............. 1.08
Pastificio Riscossa F.lli Mastromauro S.r.L................ 0.99
N. Puglisi & F. Industria Paste Alimentari S.p.A........... 7.18
Rummo S.p.A. Molino e Pastificio........................... 1.26
------------------------------------------------------------------------
We will instruct the 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/
[[Page 64216]]
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. These rates shall apply to all non-reviewed companies
until a review of the companies assigned these rates is completed. In
addition, for the period January 1 through December 31, 1999, 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.
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: December 4, 2001.
Bernard Carreau,
Acting Assistant Secretary for Import Administration.
Appendix I--Issues Discussed in the Decision Memorandum
I. Subsidies Valuation Methodology
1. Change in Ownership
2. Benchmarks for Long-term Loans and Discount Rates
3. Allocation Period
4. Attribution
5. Sales Values
II. Analysis of programs
A. Programs Previously Determined to Confer Subsidies
1. Law 64/86 Industrial Development Grants
2. Law 488/92 Industrial Development Grants
3. Law 183/76 Industrial Development Grants
4. Industrial Development Loans Under Law 64/86
5. Law 341/95 Interest Contributions on Debt Consolidation Loans
6. Law 598/94 Interest Subsidies
7. Social Security Reductions and Exemptions--Sgravi
8. IRAP Exemptions
9. Law 236/93 Training Grants
10. Law 304/90 Export Marketing Grants
11. European Regional Development Fund
12. Export Restitution Payments
13. Duty-free Import Rights
B. Programs Determined Not To Confer Countervailable Subsidies in the
POR
1. IRPEG Exemptions
2. Remission of Taxes on Export Credit Insurance Under Article 33 of
Law 227/77
3. ADAPT
4. Law 1329/65 Interest Contributions (Sabatini Law)
5. European Social Fund
C. Programs Determined to Be Not Used
1. Law 64/86 VAT Reductions
2. Export Credits under Law 227/77
3. Capital Grants under Law 675/77
4. Retraining Grants under Law 675/77
5. Interest Contributions on Bank Loans under Law 675/77
6. Interest Grants Financed by IRI Bonds
7. Preferential Financing for Export Promotion under Law 394/81
8. Urban Redevelopment under Law 181
9. Grant Received Pursuant to the Community Initiative Concerning
the Preparation of Enterprises for the Single Market (``PRISMA'')
10. European Agricultural Guidance and Guarantee Fund (``EAGGF'')
III. Analysis of Comments
Comment 1: Sale of duty-free import rights (Agritalia)
Comment 2: Application of the Department's change in ownership
methodology to Delverde (Delverde)
Comment 3: Presumption that subsidies continue after a change in
ownership (Delverde)
Comment 4: Privatization and the U.K. Lead Bar Panel (Delverde)
Comment 5: Sale of shares vs. assets (Delverde)
Comment 6: Continuity of business operations (Delverde)
Comment 7: Sgravi repayment (Delverde)
Comment 8: Selection of 1999 sales values (Pallante)
Comment 9: Law 64/86 industrial development grants and loans
(Pallante)
Comment 10: Sales by CE.S.A.P (Puglisi)
Comment 11: Failure to use company-specific discount rate for 1993
industrial development grant under Law 64/86 (Puglisi)
Comment 12: Failure to use company-specific interest rates for
industrial development loans under Law 64/86 (Puglisi and DeMatteis)
Comment 13: Deduction of loan guarantee payments (Puglisi)
Comment 14: Deduction of interest payments on Law 64/86 industrial
development grant advances (Puglisi)
Comment 15: Use of FOB sales values (Riscossa)
Comment 16: Attribution of benefits to pasta sales vs. sales of all
product (Riscossa)
[FR Doc. 01-30749 Filed 12-11-01; 8:45 am]
BILLING CODE 3510-DS-P