NOTICES

                        DEPARTMENT OF COMMERCE

                               [C-588-040]

     Certain Fasteners From Japan; Preliminary Results of Administrative Review of
                        Countervailing Duty Order

                        Wednesday, February 1, 1984

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 AGENCY: International Trade Administration, Commerce.

 ACTION: Notice of Preliminary Results of Administrative Review of Countervailing
 Duty Order.

 SUMMARY: The Department of Commerce has conducted an administrative review of the
 countervailing duty order on certain fasteners from Japan. The review covers the
 period January 1, 1982 through December 31, 1982.

 As a result of the review, the Department has preliminarily determined the aggregate net
 subsidy to be 0.09 percent ad valorem, a rate the Department considers to be de minimis.
 Interested parties are invited to comment on these preliminary results.

 EFFECTIVE DATE: February 1, 1984.

 FOR FURTHER INFORMATION CONTACT: Al Jemmott or Brian Kelly, Office of
 Compliance, International Trade Administration, U.S. Department of Commerce,
 Washington, D.C. 20230; telephone: (202) 377-2786.

 SUPPLEMENTARY INFORMATION:

 Background

 On May 26, 1983, the Department of Commerce ("the Department") published in the
 Federal Register (48 FR 23682) the final results of its last administrative review of the
 countervailing duty order on certain fasteners from Japan (42 FR 23147, May 6,
 1977; amended by 44 FR 31972, June 4, 1979) and announced its intent to conduct the
 next administrative review. As required by section 751(a)(1) of the Tariff Act of 1930
 ("the Tariff Act"), the Department has now conducted that administrative review.

 Scope of the Review

 Imports covered by the review are shipments of all Japanese fasteners currently
 classifiable under items 646.5400 and 646.5600, and non-metric Japanese fasteners
 currently classifiable under items 646.1700, 646.4000, 646.4100, 646.4920, 646.4940,
 646.5100, 646.5300, 646.5800, 646.6020, 646.6040, 646.6320, 646.6340, 646.6500,
 646.7200, 646.7400, 646.7500, 646.7600, and 646.7800 of the Tariff Schedules of the
 United States Annotated. The review covers the period january 1, 1982 through
 December 31, 1982 and the following programs: (1) Benefits received under the
 "Temporary Measures Act for Small and Midsized Businesses with regard to the High Yen
 Exchange Market" (High Yen law"); (2) the deferral of income taxes on export earnings
 under the Overseas Market Development Reserve ("OMDR"); and (3) other loans given at
 preferential rates by the People's Finance Corporation, the Bank of Commerce and
 Industrial Cooperatives, the Small Business Finance Corporation, and the Japan
 Development Bank.

 Analysis of Programs

 (1) High Yen Law 

 The two methods of assistance available under the High Yen Law and previously used by
 the fasteners industry, loans at preferrential rates and deferment of payment of interest
 on these loans, were terminated prior to the period of this review. Loans were for a period
 of six years and their benefits continued during 1982. The third method of assistance,
 special government credit guarantees, was not used by the fasteners industry. We have
 calculated the aggregate benefit from this program to be 0.01 percent ad valorem.

 (2) OMDR

 The OMDR program is offered by the Japanese government to firms with a total
 capitalization of 500 million yen or less. The program allows a firm the opportunity to set
 aside a portion of income earned on overseas operations. The amount set aside escapes
 taxation for up to 5 years. Twenty percent of the amount set aside must be returned to
 taxable income each year, and the total amount must be returned by the end of the fifth
 year. We have considered the taxes owed on these amounts set aside to be zero interest
 loans made by the government. We used as the benchmark, the average short term
 interest rate charged to small and medium sized enterprises as reported by the Japanese
 government. We have calculated the benefit under the OMDR program to be 0.08 percent
 ad valorem.

 (3) Other Preferential Loan Programs

 From information received from the Government of Japan, we conclude that no
 preferential loans were given to the fasteners industry during the period of review by the
 People's Finance Corporation, the Small Business Finance Corporation, the Bank of
 Commerce and Industrial Cooperatives, or the Japan Development Bank.

 Preliminary Results of the Review

 As a result of the review, we preliminarily determine the aggregate net subsidy to be 0.09
 percent ad valorem for the period of review. The Department considers any rate less than
 0.5 percent ad valorem to be de minimis. Therefore, the Department intends to instruct
 the Customs Service not to assess countervailing duties on any shipments of this
 merchandise exported on or after January 1, 1982 and on or before December 31, 1982.
 Further, the Department intends to instruct the Customs Service to continue to waive the
 collection of a cash deposit of estimated countervailing duties, as provided for by
 section 751(a)(1) of the Tariff Act, on all shipments of such Japanese fasteners entered, or
 withdrawn from warehouse, for consumption on or after the date of publication of the
 final results of the current review. This deposit waiver shall remain in effect until
 publication of the final results of the next administrative review.
 Interested parties may submit written comments on these preliminary results within 30
 days of the date of publication of this notice and may request disclosure and/or a hearing
 within 10 days of the date of publication. Any hearing, if requested, will be held 45 days
 after the date of publication or the first workday thereafter. Any request for an
 administrative protective order must 

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 be made no later than 5 days after the date
 of publication. The Department will publish the final results of this administrative review
 including the results of its analysis of issues raised in any such written comments or at a
 hearing.
 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 Commmerce Regulations (19 CFR
 355.41).

 Alan F. Holmer,

 Deputy Assistant Secretary, Import Administration.

 [FR Doc. 84-2750 Filed 1-31-84; 8:45 am]

 BILLING CODE 3510-DS-M