49 FR 4539
NOTICES
DEPARTMENT OF COMMERCE
[C-475-015]
Pads for Woodwind Instrument Keys From Italy
Tuesday, February 7, 1984
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AGENCY: International Trade Administration, Import Administration,
Commerce.
ACTION: Preliminary Negative Countervailing Duty Determination.
SUMMARY: We preliminarily determine that certain benefits which constitute
subsidies within the meaning of the countervailing duty law are being
provided to the manufacturers, producers, or exporters in Italy of pads for
woodwind
instrument keys, as described in the "Scope of Investigation" section of this notice,
but that the total estimated net subsidy is de minimis. Therefore, our preliminary
countervailing duty determination is negative. If this investigation proceeds
normally, we will make our final determination by April 16, 1984.
EFFECTIVE DATE: February 7, 1984.
FOR FURTHER INFORMATION CONTACT: Vincent Kane, Office of Investigations,
Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue NW., Washington,
D.C. 20230, telephone (202) 377-5414.
SUPPLEMENTARY INFORMATION:
Preliminary Determination
For purposes of this investigation, the only program found to confer a subsidy is the
tax concession granted under Italian Law 614. The total estimated net subsidy is
0.05 percent ad valorem. This ad valorem subsidy is de minimis. Therefore, we
preliminarily determine that there is no reason to believe or
suspect that benefits which constitute subsidies within the meaning of section 701 of
the Tariff Act of 1930, as amended (the Act), are being provided to producers or
exporters in Italy of pads for woodwind instrument keys as described in the
"Scope of Investigation" section of this notice.
Case History
On November 7, 1983, we received a petition from the Prestini Musical Instrument
Corporation, filed on behalf of the United States industry producing pads for
woodwind instrument keys. The petition alleges that the government of Italy
bestows subsidies within the meaning of section 701 of the Act upon the production
or exportation of pads for woodwind instrument keys. We found the petition to
contain sufficient grounds upon which to initiate a countervailing duty
investigation and on November 25, 1983, we initiated a countervailing duty
investigation (48 FR 55601). We stated that we would issue a preliminary
determination on or before January 31, 1984.
Since Italy is a "country under the Agreement" within the meaning of section
701(b) of the Act, an injury determination is required for this investigation.
Therefore, we notified the
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International Trade Commission (ITC) of our initiation.
On December 21, 1983, the ITC determined that there is a reasonable indication
that imports of the subject merchandise are materially injuring a U.S. industry.
On November 30, 1983, we presented to the government of Italy in Washington,
D.C., a questionnaire concerning the allegations in the petition and Italian
government programs which, in prior investigations, we have found might confer
countervailable benefits. We also presented questionnaires to Luciano Pisoni and
Pads Manufacture di s.r.1., the sole Italian manufacturers exporting the subject
merchandise to the United States. On January 9, 1984, we received responses to the
questionnaries.
Scope of Investigation
The product covered by this investigation is pads for woodwind instrument keys,
currently provided for under item number 726.70 of the Tariff Schedules of the
United States (TSUS). These pads are affixed to the keys of various woodwind
instruments, e.g., saxophones, clarinets, oboes and flutes. The periods for which we
are measuring subsidies are January 1, 1982, to December 31, 1982, and January 1,
1983, to September 30, 1983.
Analysis of Programs
In their responses, the government of Italy and the exporters provided data for
the applicable periods. Based upon our analysis of the petition and the responses to
our questionnaires, we preliminarily determine the following:
I. Program Preliminarily Determined to Confer Subsidies
We preliminarily determine that subsidies are being provided to manufacturers,
producers, and exporters in Italy of pads for woodwind instrument keys under
the following program:
Tax Concession Under Italian Law 614
Italian Law of May 22, 1966, provides for a 10-year exemption from the provincial
corporate income tax for new manufacturers locating in certain depressed areas of
central and northern Italy. Since the benefit conferred by Law 614 is restricted
to specific regions of the country, we view the benefit as being provided to a group
of enterprises or industries and, consequently, as resulting in the payment or
bestowal of a subsidy within the meaning of section 701 of the Act. Since 1978,
Luciano Pisoni has qualified for and received under Law 614 the exemption from
provincial corporate income tax. In 1982, the firm realized a tax savings which
amounted to 0.05 percent of total f.o.b. value.
II. Programs Preliminarily Determined Not To Confer Subsidies
We preliminarily determine that the Italian provincial government is not providing
subsidies to manufacturers, producers, or exporters of pads for woodwind
instrument keys under the following program:
A. Loans under Provincial Law 17
Province of Trento Law 17 of 1975 provides for medium-term financing on terms
inconsistent with commercial considerations to companies within the province
which are experiencing financial difficulties.
The purpose of the financing is to allow companies in precarious financial position
to reorganize or restructure an thereby avoid or recover from bankruptcy. In 1977,
Pads Manufacuture s.r.l., received a medium-term loan under Law 17. We have
preliminarily determined that financing under law 17 does not result in the payment
or bestowal of a subsidy within the meaning of section 701 of the Act. The
provisions of Law 17 apply to a wide variety of enterprises and industries. Every
business within the province has the potential to receive assistance under this law.
Consequently, we do not view the benefits of this law as restricted to a specific
enterprise or industry, or
group of enterprises or industries. Rather, we view the benefits as being generally
available and, therefore, not resulting in the payment or bestowal of a subsidy. We
note that during verification we will ascertain whether, in fact, a wide variety of
companies has actually received financing under this law.
B. Loan under Provincial Law 58
Province of Trento Law 58 of December 11, 1978, provides for medium-term loans
to small companies for the purpose of establishing and expanding plant and
equipment and thereby promotes employment and the tranining of new employees
within the province. Under the provisions of the law, firms may obtain loans in an
amount of up to 70 percent of capital expenditure with approximately 60 percent of
the interest expense over the life of the loan absorbed by the province.
On June 6, 1980, Luciano Pisoni received a medium-term loan under provincial Law
58.
We have preliminarily determined that financing under Law 58 does not result in the
payment or bestowal of a subsidy. Although limited to small companies, the
provisions of Law 58 nonetheless apply to a wide variety of enterprises and
industries. Consequently, we do not view the benefits received under this law
as restricted to a specific enterprise or industry, or group of enterprises or
industries, as required by the Act for the benefit to result in the payment or
bestowal of a subsidy.
III. Programs Preliminarily Determined Not To Be Used
We have preliminarily determined that the programs listed below, which we
included in our notice of initiation, are not being used by manufacturers, producers,
or exporters in Italy of pads for woodwind instrument keys:
A Financing for the Northern and Central Regions
Law 902 of 1976, provides for loans at less than prvailing market rates to small and
medium-sized companies in northern and central Italy. We preliminarily find
that the companies under investigation have not received financing through the
provisions of Law 902.
B. Long-Term Financing From Mediocredito Centrale
Petitioner made a general allegation that manufacturers of the subject merchandise
had received preferential long-term financing from the Institution
Centrale per il Credit a Medio Terminate (Mediocredito Centrale).
During our investigation we found that Mediocredito Centrale administers financing
under Italian Law 902. However, neither of the producers under consideration
received loans under Law 902. In addition, we preliminarily find that neither of the
producers under consideration have received any other financing which may be
considered preferential through laws or programs administered by Mediocredito
Centrale.
C. Export Credit Financing
Part IV of Italian Law 227 established medium-term export credit financing to
promote the exportation of goods and services. The law provides for the
establishment of lines of credit available to foreign buyers contracting for the
purchase of goods and services of Italian origin. Mediocredito Centrale administers
the export credit financing through special medium and long-term credit
institutions. The minister of the Treasury, after consulting the Interministerial
Committee for Credit and Savings, establishes the requirements, terms and
conditions of
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the export credit financing. The financing is denominated in Italian lire or any
foreign currency acceptable to the Mediocredito Centrale and to special medium
and long-term credit institutions.
We preliminarily find that during our period of investigation U.S. importers of the
subject merchandise have not received export credit financing under Italian Law
227.
Verification
In accordance with section 776(a) of the Act, we will verify all the information used
in reaching our final determination.
Public Comment
In accordance with § 355.35 of the Commerce Regulations, if requested, we will hold
a public hearing to afford interested parties an opportunity to comment on this
preliminary determination at 10 a.m. on February 17, 1984, at the U.S. Department
of Commerce, Room 1851, 14th Street and Constitution Avenue NW., Washington,
D.C. 20230. Individuals who wish to participate in the hearing must submit a
request to the Deputy Assistant Secretary for Import Administration, Room 3099B,
at the above address within 10 days of this notice's publication. Requests should
contain: (1) the party's name, address, and telephone number; (2) the number of
participants; (3) the reason for attending; and (4) a list of the issues to be discussed.
In addition,
prehearing briefs must be submitted to the Deputy Assistant Secretary by February
10, 1984. Oral presentations will be limited to issues raised in the briefs.
All written views should be filed in accordance with 19 CFR 355.46 within 30 days of
this notice's publication, at the above address and in at least 10 copies.
Dated: January 31, 1984.
Alan F. Holmer,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 84-3287 Filed 2-6-84; 8:45 am]
BILLING CODE 3510-DS-M