47 FR 5026
NOTICES
DEPARTMENT OF COMMERCE
International Trade Administration
Float Glass From Italy; Final Results of Administrative Review of
Countervailing Duty Order
Wednesday, February 3, 1982
*5026
AGENCY: International Trade Administration, Commerce.
ACTION: Notice of final results of administrative review of countervailing duty
order.
SUMMARY: On April 21, 1981, the Department of Commerce ("the Department")
published the preliminary results of its administrative review of the
countervailing duty order on float glass from Italy. The time periods
covered by this review differ for the two known exporters covered by the order. The
period of review for Fabbrica Pisana, S.p.A. is January 7, 1976 through December
31, 1979. The period of review for Societa Italiana Vetro, S.p.A. ("SIV") is March 30,
1979 through December 31, 1979.
Interested parties were invited to comment on the preliminary results. The
petitioner requested a disclosure of pertient information under an administrative
protective order. The Department determined that the material should be released,
but the Italian government would not allow release of the confidential materials it
had submitted. Therefore, this information was not used in calculating the final
countervailing duty rates and we relied, instead, on the best information
otherwise available. SIV submitted new information after the comment period
regarding the subsidies it received. This data was submitted too late for
consideration in this review by the Department.
The Department determines that the countervailing duty rates for Fabbrica
Pisana are 16.94 percent ad valorem for January 7, 1976 through December 31,
1976, 15.85 percent ad valorem for calendar year 1977, 15.56 percent ad valorem
for calendar year 1978, and 15.41 percent ad valorem for calendar
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year 1979. For SIV, the rate is 15.53 percent ad valorem for March 30, 1979
through December 31, 1979. We further determine that cash deposits of estimated
countervailing duties at the 1979 rates shall be required on all shipments by
these firms entered, or withdrawn from warehouse, for consumption on or after the
date of publication of these final results.
EFFECTIVE DATE: Feburary 3, 1982.
FOR FURTHER INFORMATION CONTACT:
Ms. Claire Rickard, Office of Compliance, Import Administration, International
Trade Administration, U.S. Department of Commerce, Washington, D.C. 20230
(202-377-1487).
SUPPLEMENTARY INFORMATION:
Procedural Background
On January 7, 1976, the Department of the Treasury ("Treasury") published a
countervailing duty order, T.D. 76-9, with respect to float glass from Italy
(41 FR 1274). Treasury modified the original order on March 8, 1977 (T.D. 77-
77, 42 FR 13016) to exclude Societa Italiana Vetro S.p.A. ("SIV"). The
petitioner challenged that determination and, on March 29, 1979, the U.S. Customs
Court (now the Court of International Trade) held, in ASG Industries Inc. v. United
States, 467 F. Supp. 1200 (Cust. Ct. 1979), that imports of float glass from Italy
manufactured or produced by SIV did in fact benefit from the payment of bounties
or grants. Liquidation was suspended on March 30, 1979 following the court's
decision. The United States appealed the Customs Court decision to the U.S. Court of
Customs and Patent Appeals ("CCPA"). On June 18, 1980, the CCPA granted the
motion of the United States to dismiss its appeal. As a result, the Department of
Commerce ("the Department") published an order on October 24, 1980, amending
the countervailing duty order applicable to float glass from Italy to
include float glass manufactured or exported by SIV.
On April 21, 1981, the Department published in the Federal Register (46 FR 22776)
a notice of "Preliminary Results of Administrative Review of Countervailing
Duty Order" on float glass from Italy. The Department has now completed that
administrative review.
Scope of the Review
The merchandise covered by this review is flat glass manufactured by the float
process from Italy. It is currently classifiable under item numbers 543.21
through 543.69 of the Tariff Schedules of the United States. Entries of the
float glass which have been substantially further manufactured (e.g., into tempered
glass or laminated glass) are not subject to this countervailing duty order.
The review is based upon information for the period January 7, 1976 through
December 31, 1979 for Fabbrica Pisana S.p.A. and March 30, 1979 through
December 31, 1979 for SIV, the only two known exporters covered by this order.
The preliminary review determined that both companies received subsidies in the
form of preferential financing, capital grants, reduced contributions to the Italian
social welfare system (l'Istituto Nazionale Previdenza Sociale), and a reduced
corporate income tax rate.
Issues Raised During the Comment Period
During the comment period the petitioner requested disclosure under an
administrative protective order or confidential information used in establishing the
countervailing duty rates. We gave the Italian government an opportunity to
comment, as provided for by § 355.20(a)(2) of the Commerce Regulations, and then
determined that the information was releasable. However, the Italian government
refused to allow the release of the confidential data under protective order. As
provided by § 355.20(a)(4) of the Commerce Regulations we returned the
information submitted after January 1, 1980 which
we had used to calculate the preliminary countervailing duty rates.
Information from prior years which we had used in our preliminary results was not
returned since we had previously used this data as the basis for other decisions.
However, we have withdrawn this information from the consideration in this section
751 review. Therefore, the documents which we have used to determine the final
countervailing duty rates contain only public information and constitute the
best information otherwise available, as provided for in § 355.39(b) of the
Commerce Regulations.
After the comment period had ended, SIV presented the Department with additional
information regarding this period of review. This information was submitted too late
for consideration by the Department.
Analysis of Programs using Best Information Available
Due to the withdrawal of confidential data by the Italian government, the
Department has recalculated the subsidies received and the values of production for
the two firms using publicly available information. We found that subsidies existed
under the same four programs that we identified in the April 21, 1981 notice of
preliminary results: Preferential interest rates, capital investment grants, reduced
contributions to the social welfare fund (INPS), and reduced income tax payments.
We also found one additional subsidy program, a
reduction in the General Turnover Tax rate applied on all commercial transactions
for factories located in southern Italy. Following is an explanation of the new
rates for each program.
(1) Subsidies. (a) Preferential Interest Rate Program. Information from the petition
filed on May 31, 1974 indicates that loans were given to Fabbrica Pisana and SIV in
1974 at subsidized interest rates 3.5 percent below the prevailing market rate with a
fifteen year repayment schedule. Accordingly, we find that the ad valorem subsidy
benefit for Fabbrica Pisana is 0.99 percent for 1976, 0.47 percent for 1977, 0.32
percent for 1978, and 0.25 percent for 1979; for SIV the benefit in 1979 is 0.33
percent ad valorem. After the withdrawal we had no information regarding any
other loans.
(b) Capital Investment Grants. The petition states that both Fabbrica Pisana and SIV
received investment grants in 1974. It further states that the useful life of the
investments purchased with the grants (float glass production lines) is twelve years.
Following administrative practice, we have allocated the grants over half the useful
life of the assets purchased. For Fabbrica Pisana we found the ad valorem subsidy to
be 0.88 percent for 1976, 0.42 percent for 1977, 0.31 percent for 1978 and 0.25
percent for 1979. For SIV, the benefit in 1979 is 0.28 percent ad valorem.
(c) Reduced Contributions to the Social Welfare Fund. The Italian government may
reduce a firm's payments to the Istituto Nazionale Previdenza Sociale
(INPS) to encourage development in sourthern Italy. The petition states that the
subsidy is equal to 20 percent of the total labor cost which is estimated as 11
percent of the total manufacturing cost. We followed Treasury's precedent which
estimated the total manufacturing cost as 50 percent of the value of production.
Using this formula, we found the subsidy conferred by this program to be 1.10
percent ad valorem for each company for each of the years in our period of review.
(d) Income Tax (IRPEG) Payments. As described in our preliminary results, we
consider the benefit given under this program to be 12.5 percent of the taxable
income which, lacking actual figures from the companies, we calculate to be 50
percent of the value of
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production. However, in this notice of final results we have changed the values of
production to reflect the best information available (see below). We now calculate
the subsidy under this program to be 13.75 percent ad valorem for each company
for each year in our period of review.
(e) General Turnover Tax Reduction. The petition claims that a reduction of the
General Turnover Tax amounted to a 2 percent subsidy of the cost of each
company's total investment. We have calculated those amounts and amortized the
benefits over six years, half the useful life of the investments. The ad valoreum
subsidy rates for Fabbrica Pisana are 0.22 percent for 1976, 0.11 percent for 1977,
0.08 percent for 1978, and 0.06 percent for 1979. For SIV
the benefit is 0.07 percent ad valorem for 1979.
(2) Value of Production. To calculate values of production for 1976, 1977, 1978,
and 1979 for Fabbrica Pisana and 1979 for SIV we used the square foot capacity of
float glass for each firm (which was given in the petition) multiplied by an average
dollar value per square foot. Tis average dollar value we derived from United States
Bureau of the Census import statistics for float glass for the appropriate years.
Final Results of the Review
Using the above figures, we determine the aggregate net subsidy conferred by the
Government of Italy on the production of float glass by Fabbrica Pisana to be
16.94 percent of the f.o.b. invoice price for the period January 7, 1976 through
December 31, 1976, 15.85 percent of the f.o.b. invoice price for calendar year 1977,
15.56 percent of the f.o.b. invoice price for calendar year 1978, and 15.41 percent of
the f.o.b. invoice price for calendar year 1979. The subsidy conferred on the
production of float glass by SIV is 15.53 percent of the f.o.b. invoice price for the
1979 time period.
The U.S. Customs Service shall assess countervailing duties at the rates
stated above on all unliquidated entries of float glass from Italy entered, or
withdrawn from warehouse, for consumption on or after January 7, 1976, and
exported on or before December 31, 1979 for Fabbrica Pisana and, for SIV, on or
after March 30, 1979 and exported on or before December 31, 1979.
As provided by section 751(a)(1) of the Tariff Act of 1930, the Customs Service shall
collect a cash deposit of estimated countervailing duties of 15.41 percent of
the f.o.b. invoice price for Fabbrica Pisana and 15.53 percent of the f.o.b. invoice
price for SIV for all shipments entered, or withdrawn from warehouse, for
consumption on or after the date of publication of these final results. These deposit
requirements shall remain in effect until publication of the final results of the next
administrative review. The Department is now commencing the next administrative
review of the order. The amount of countervailing duties to be imposed on
shipments exported during the calendar year 1980 will be determined in the next
administrative review. Consequently, the suspension of liquidation previously
ordered will continue for all entries of this merchandise exported on or after
January 1, 1980.
This administrative review and notice are in accordance with section 751(a)(1) of
the Tariff Act (19 U.S.C. 1675(a)(1)) and § 355.41 of the Commerce Regulations (19
CFR 355.41).
Dated: January 27, 1982.
Gary N. Horlick,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 82-2728 Filed 2-2-82; 8:45 am]
BILLING CODE 3510-25-M