70 FR 37084, June 28, 2005

DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-819]

Certain Pasta from Italy: Final Results of the Eighth Countervailing 
Duty Administrative Review

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

SUMMARY: On April 8, 2005, the U.S. Department of Commerce (``the 
Department'') published in the Federal Register its preliminary results 
of the administrative review of the countervailing duty order on 
certain pasta from Italy for the period January 1, 2003, through 
December 31, 2003. We preliminarily found that the countervailing duty 
rates during the period of review for all of the producers/exporters 
under review are less than 0.5 percent and are, consequently, de 
minimis. We did not receive any comments on our preliminary results, 
and we have made no further revisions. The final net subsidy rates for 
the reviewed companies are listed below in the section entitled ``Final 
Results of Review.''

EFFECTIVE DATE: June 28, 2005.

FOR FURTHER INFORMATION CONTACT: Brandon Farlander or Marc Rivitz, AD/
CVD Operations, Office 1, Import Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 
20230; telephone (202) 482-0182 and (202) 482-1382, respectively.

SUPPLEMENTARY INFORMATION:

Case History

    On July 24, 1996, the Department published a countervailing duty 
order on certain pasta (``pasta'' or ``subject merchandise'') from 
Italy. See Notice of Countervailing Duty Order and Amended Final 
Affirmative Countervailing Duty Determination: Certain Pasta From 
Italy, 61 FR 38544 (July 24, 1996). On July 1, 2004, the Department 
published a notice of ``Opportunity to Request Administrative Review'' 
of this countervailing duty order for calendar year 2003, the period

[[Page 37085]]

of review (``POR''). See Antidumping or Countervailing Duty Order, 
Finding, or Suspended Investigation; Opportunity to Request 
Administrative Review, 69 FR 39903 (July 1, 2004). On July 30, 2004, we 
received requests for reviews from the following four producers/
exporters of Italian pasta: Pastificio Antonio Pallante S.r.l. 
(``Pallante''); Pastificio Corticella S.p.A. (``Corticella'')/
Pastificio Combattenti S.p.A. (``Combattenti'') (collectively, 
``Corticella/Combattenti''); Pasta Lensi S.r.l. (``Lensi'');\1\ and 
Pastificio Carmine Russo S.p.A./Pastificio Di Nola S.p.A. 
(collectively, ``Russo/Di Nola''). In accordance with 19 CFR 
351.221(c)(1)(i), we published a notice of initiation of the review on 
August 30, 2004. See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews and Requests for Revocation in Part, 69 FR 52857 
(August 30, 2004).
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    \1\ Lensi is the successor-in-interest to IAPC Italia S.r.l. See 
Notice of Final Results of Antidumping and Countervailing Duty 
Changed Circumstances Reviews: Certain Pasta from Italy, 68 FR 41553 
(July 14, 2003).
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    On September 7, 2004, we issued countervailing duty questionnaires 
to the Commission of the European Union, the Government of Italy 
(``GOI''), Pallante, Corticella/Combattenti, Lensi, and Russo/Di Nola. 
We received responses to our questionnaires in October and November 
2004. We issued supplemental questionnaires to the respondents in 
November 2004, and received responses to our supplemental 
questionnaires in November and December 2004.
    On September 15, 2004, Russo/Di Nola withdrew its request for 
review. Pallante withdrew its request for review on October 28, 2004. 
Based on withdrawals of the requests for review, we rescinded this 
administrative review for both Russo/Di Nola and Pallante. See Certain 
Pasta from Italy: Preliminary Results and Partial Rescission of the 
Eighth Countervailing Duty Administrative Review, 70 FR 17971 (April 8, 
2005) (``Preliminary Results'').
    Since the publication of the Preliminary Results, we invited 
interested parties to submit briefs or request a hearing. The 
Department did not conduct a hearing in this review because none was 
requested, and no briefs were received.

Scope of the Order

    Imports covered by the order are shipments of certain non-egg dry 
pasta in packages of five pounds four ounces or less, whether or not 
enriched or fortified or containing milk or other optional ingredients 
such as chopped vegetables, vegetable purees, milk, gluten, diastasis, 
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 the order 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, Bioagricoop S.r.l., QC&I International Services, 
Ecocert Italia, Consorzio per il Controllo dei Prodotti Biologici, 
Associazione Italiana per l'Agricoltura Biologica, or Codex S.r.L. In 
addition, based on publicly available information, the Department has 
determined that, as of August 4, 2004, imports of organic pasta from 
Italy that are accompanied by the appropriate certificate issued by 
Bioagricert S.r.l. are also excluded from this order. See memorandum 
from Eric B. Greynolds to Melissa G. Skinner, dated August 4, 2004, 
which is on file in the Department's Central Records Unit (``CRU'') in 
Room B-099 of the main Department building.
    The merchandise subject to review is currently classifiable under 
subheadings 1901.90.9095 and 1902.19.20 of the Harmonized Tariff 
Schedule of the United States (``HTSUS''). Although the HTSUS 
subheadings are 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 antidumping and countervailing duty 
orders. See memorandum from Edward Easton to Richard Moreland, dated 
August 25, 1997, which is on file in the CRU.
    (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 
antidumping and countervailing duty orders. See letter from Susan H. 
Kuhbach to Barbara P. Sidari, dated July 30, 1998, which is available 
in the CRU.
    (3) On October 23, 1997, the petitioners filed an application 
requesting that the Department initiate an anti-circumvention 
investigation of Barilla S.r.L. (``Barilla''), an Italian producer and 
exporter of pasta. The Department initiated the investigation on 
December 8, 1997. See Initiation of Anti-Circumvention Inquiry on 
Antidumping Duty Order on Certain Pasta From Italy, 62 FR 65673 
(December 15, 1997). On October 5, 1998, the Department issued its 
final determination that, pursuant to section 781(a) of the Tariff Act 
of 1930, as amended (``the Act''), circumvention of the antidumping 
order on pasta from Italy was occurring by reason of exports of bulk 
pasta from Italy produced by Barilla which subsequently were repackaged 
in the United States into packages of five pounds or less for sale in 
the United States. See Anti-Circumvention Inquiry of the Antidumping 
Duty Order on Certain Pasta from Italy: Affirmative Final Determination 
of Circumvention of the Antidumping Duty Order, 63 FR 54672 (October 
13, 1998).
    (4) 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 is within the scope of the 
antidumping and countervailing duty orders. 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 antidumping and countervailing duty 
orders. See memorandum from John Brinkmann to Richard Moreland, dated 
May 24, 1999, which is available in the CRU.
    (5) On April 27, 2000, the Department self-initiated an anti-
circumvention inquiry to determine whether Pastificio Fratelli Pagani 
S.p.A.'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, 65 FR 26179 (May 5, 2000). On September 19, 2003, we published 
an affirmative finding of the anti-circumvention inquiry. See Anti-
Circumvention Inquiry of the Antidumping and Countervailing Duty Orders 
on Certain Pasta from Italy: Affirmative Final Determinations of 
Circumvention of Antidumping and

[[Page 37086]]

Countervailing Duty Orders, 68 FR 54888 (Sept. 19, 2003).

Period of Review

    The period for which we are measuring subsidies, or POR, is January 
1, 2003, through December 31, 2003.

Final Results of Review

    Neither the petitioners nor respondents commented on the 
preliminary results, and we found that no changes were warranted. 
Therefore, we have made no changes to the net countervailable subsidy 
rates for the POR.
    In accordance with 19 CFR 351.221(b)(5), we calculated an 
individual subsidy rate for each producer/exporter covered by this 
administrative review. Listed below are the programs we examined in the 
review and our findings with respect to each of these programs. For a 
complete analysis of the programs found to be countervailable and 
terminated, see Preliminary Results.

------------------------------------------------------------------------
                  Producer/Exporter                    Net Subsidy Rate
------------------------------------------------------------------------
Pasta Lensi S.r.l...................................        0.00 percent
Pastificio Corticella S.p.A./Pastificio Combattenti     0.06 percent (de
 S.p.A..............................................            minimis)
------------------------------------------------------------------------

I. Program Determined to Confer Subsidies During the POR

A. Export Marketing Grants Under Law 304/90 ..........0.06 percent
    Note: applies to Corticella/Combattenti only.

II. Programs Determined Not to Confer Subsidies During the POR

A. Social Security Reductions and Exemptions - Sgravi
B. Brescia Chamber of Commerce Grants

III. Programs Determined Not To Have Been Used During the POR

A. Industrial Development Grants Under Law 488/92
B. Industrial Development Loans Under Law 64/86
C. European Regional Development Fund Grants
D. Law 236/93 Training Grants
E. Law 1329/65 Interest Contributions (Sabatini Law) (Formerly Lump-Sum Interest 
   Payment Under the Sabatini Law for Companies in Southern Italy)
F. Development Grants Under Law 30 of 1984
G. Law 908/55 Fondo di Rotazione Iniziative Economiche (Revolving Fund 
   for Economic Initiatives) Loans
H. Industrial Development Grants Under Law 64/86
I. Law 317/91 Benefits for Innovative Investments
J. Tremonti Law 489/94 (Formerly Law Decree 357/94)
K. Ministerial Decree 87/02
L. Law 10/91 Grants to Fund Energy Conservation
M. Law 341/95 Interest Contributions on Debt Consolidation Loans 
   (Formerly Debt Consolidation Law 341/95)
N. Regional Tax Exemptions Under IRAP
O. Corporate Income Tax (IRPEG) Exemptions
P. Export Restitution Payments
Q. VAT Reductions Under Laws 64/86 and 675/55
R. Export Credits Under Law 227/77
S. Capital Grants Under Law 675/77
T. Retraining Grants Under Law 675/77
U. Interest Contributions on Bank Loans Under Law 675/77
V. Interest Grants Financed by IRI Bonds
W. Preferential Financing for Export Promotion Under Law 394/81
X. Urban Redevelopment Under Law 181
Y. Grant Received Pursuant to the Community Initiative Concerning the 
   Preparation of Enterprises for the Single Market (PRISMA)
Z. Industrial Development Grants under Law 183/76
AA. Interest Subsidies Under Law 598/94
AB. Duty-Free Import Rights
AC. Remission of Taxes on Export Credit Insurance Under Article 33 of 
Law 227/77
AD. European Social Fund Grants
AE. Law 113/86 Training Grants
AF. European Agricultural Guidance and Guarantee Fund

    The calculations will be disclosed to the interested parties in 
accordance with 19 CFR 351.224(b).
    Because the countervailing duty rates for all of the above-noted 
companies are either less than 0.5 percent and, consequently, de 
minimis, or zero, we will instruct U.S. Customs and Border Protection 
(``CBP'') to liquidate entries of these companies during the period 
January 1, 2003, through December 31, 2003, without regard to 
countervailing duties in accordance with 19 CFR 351.106(c)(1). The 
Department will issue appropriate instructions directly to CBP within 
15 days of publication of these final results of this review.
    For all other companies that were not reviewed (except Barilla G. e 
R. F.lli S.p.A. and Gruppo Agricoltura Sana S.r.L., which are excluded 
from the order), the Department has directed CBP to assess 
countervailing duties on all entries between January 1, 2003, and 
December 31, 2003, at the rates in effect at the time of entry.
    Since the countervailable subsidy rate is de minimis, the 
Department will instruct CBP to continue to suspend liquidation of 
entries, but to collect no cash deposits of estimated countervailing 
duties for the above-noted companies of all shipments of the subject 
merchandise from the producers/exporters under review that are entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of the final results of this administrative review. For all 
non-reviewed firms (except Barilla G. e R. F.lli S.p.A. and Gruppo 
Agricoltura Sana S.r.L., which are excluded from the order), we will 
instruct CBP to collect cash deposits of estimated countervailing 
duties at the most recent company-specific or all-others rate 
applicable to the company. These rates shall apply to all non-reviewed 
companies until a review of a company assigned these rates is 
requested.
    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 351.305(a)(3). 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.
    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: June 22, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 05-12740 Filed 6-27-05; 8:45 am]