[Federal Register: February 7, 2008 (Volume 73, Number 26)]
[Notices]               
[Page 7251-7252]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07fe08-33]                         


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-819]

 
Certain Pasta From Italy: Final Results of the Tenth (2005) 
Countervailing Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On August 6, 2007, 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, 2005, through 
December 31, 2005. See Certain Pasta from Italy: Preliminary Results of 
the Tenth Countervailing Duty Administrative Review, 72 FR 43616 
(August 6, 2007) (``Preliminary Results''). We preliminarily found that 
Pastificio Antonio Pallante S.r.L. (``Pallante'') and De Matteis 
Agroalimentare S.p.A. (``De Matteis'') received countervailable 
subsidies in this review, and Atar S.r.L. (``Atar'') did not receive 
any countervailable subsidies in this review and its rate is, 
consequently, zero. Based on our analysis of the comments received, we 
have revised the net subsidy rate for De Matteis. 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: February 7, 2008.

FOR FURTHER INFORMATION CONTACT: Andrew McAllister or Brandon 
Farlander, AD/CVD Operations, Office 1, Import Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone: (202) 482-1174 and (202) 482-0182, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    Since the publication of the Preliminary Results, we sent 
supplemental questionnaires to De Matteis and the Government of Italy 
(``GOI'') on August 1, 2007, and received responses on August 9, 2007, 
and a further clarification from De Matteis on September 10, 2007. 
Also, on October 25, 2007, the Department requested additional 
clarification on De Matteis' September 10 response. We received a 
response on November 5, 2007.
    We invited interested parties to comment on the preliminary 
results. Case briefs were received from De Matteis and petitioners on 
September 19, 2007. A rebuttal brief was received from De Matteis on 
September 24, 2007. The Department did not conduct a hearing in this 
review because none was requested.

Period of Review

    The period of review (``POR'') for which we are measuring subsidies 
is January 1, 2005, through December 31, 2005.

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. In addition, based on 
publicly available information, the Department has determined that, as 
of March 13, 2003, imports of organic pasta from Italy that are 
accompanied by the appropriate certificate issued by Instituto per la 
Certificazione Etica e Ambientale (ICEA) are also excluded from this 
order. See Memorandum from Audrey Twyman to Susan Kuhbach, dated 
February 28, 2006, entitled ``Recognition of Instituto per la 
Certificazione Etica e Ambientale (ICEA) as a Public Authority for 
Certifying Organic Pasta from Italy'' 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 
items 1901.90.90.95 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 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.
    (4) 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 Tariff Act 
of 1930, as amended (``the Act''), and 19 CFR 351.225(b). See Certain 
Pasta from Italy: Notice of Initiation of Anti-Circumvention Inquiry of 
the

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

Changes Since the Preliminary Results

    There has been one change since the Preliminary Results which 
affects De Matteis' rate. All issues raised in this review are 
addressed in the accompanying ``Issues and Decision Memorandum for the 
Final Results of the Tenth (2005) Administrative Review of the 
Countervailing Duty Order on Certain Pasta from Italy'' from Stephen J. 
Claeys, Deputy Assistant Secretary for Import Administration, to David 
M. Spooner, Assistant Secretary for Import Administration (January 31, 
2008), which is hereby adopted by this notice (``Decision Memo''). 
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 room B-099 of the main Department building.
    In addition, a complete version of the Decision Memo can be 
accessed directly on the Web at https://enforcement.trade.gov/frn. The paper 

copy and electronic version of the Decision Memo are identical in 
content.

Final Results of Review

    In accordance with 19 CFR 351.221(b)(4)(i), we calculated an 
individual subsidy rate for Pallante and De Matteis. See Memorandum to 
the File, ``Calculations for the Final Results for De Matteis 
Agroalimentare S.p.A.'' (January 31, 2008) for the revised rate 
calculation for De Matteis. Pallente's rate did not change from the 
preliminary results and Atar had no countervailable subsidies. We did 
not calculate an individual rate for Agritalia because a review was not 
requested for Agritalia. Agritalia was only asked to participate 
because of the possible effect of subsidies it received on its 
suppliers who are included in this review. We have found that Agritalia 
did not receive any subsidies which affected any suppliers' rates. 
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 the basis for 
the Department's determination, see the Decision Memo. For the period 
January 1, 2005, through December 31, 2005, we find the net subsidy 
rates for the producers/exporters under review to be those specified in 
the chart shown below:

------------------------------------------------------------------------
                                                             Net subsidy
                     Producer/Exporter                           rate
                                                              (percent)
------------------------------------------------------------------------
De Matteis Agroalimentare S.p.A............................         1.83
Pastificio Antonio Pallante S.r.L..........................         2.02
Atar S.r.l.................................................         0.00
------------------------------------------------------------------------

    The calculations will be disclosed to the interested parties in 
accordance with 19 CFR 351.224(b).
    Because the countervailing duty rate for Atar is zero, we will 
instruct U.S. Customs and Border Protection (``CBP'') to liquidate 
entries for Atar during the period January 1, 2005, through December 
31, 2005, without regard to countervailing duties in accordance with 19 
CFR 351.106(c). For Pallante and De Matteis, the Department will 
instruct CBP to assess countervailing duties at these net subsidy 
rates. The Department will issue appropriate instructions directly to 
CBP 15 days after 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, and Pasta Lensi S.r.l. which was revoked from the 
order), the Department has directed CBP to assess countervailing duties 
on all entries between January 1, 2005, and December 31, 2005, at the 
rates in effect at the time of entry. Agritalia has been reviewed 
previously and has its own exporter-specific rate of 2.92 percent.
    The Department also intends to instruct CBP to collect cash 
deposits of estimated countervailing duties. Since the countervailable 
subsidy rate for Atar is zero, the Department will instruct CBP to 
continue to suspend liquidation of entries, but to collect no cash 
deposits of estimated countervailing duties for Atar on all shipments 
of the subject merchandise 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, and 
Pasta Lensi S.r.l. which was revoked 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: January 31, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.

APPENDIX

List of Comments and Issues in the Decision Memorandum

    Comment 1: De Matteis Received Additional Subsidies Under Law 
662/96 and Law 488/92.
    Comment 2: The Department Should Countervail Subsidies Received 
by Agritalia's Cross-Owned Companies.
    Comment 3: The Benefits Under Law 488/92 Received by De Matteis 
Should be Allocated Over Total Sales.

 [FR Doc. E8-2280 Filed 2-6-08; 8:45 am]

BILLING CODE 3510-DS-P