(Cite as: 55 FR 26727)

NOTICES

DEPARTMENT OF COMMERCE

[C-403-802]

Preliminary Affirmative Countervailing Duty Determination: Fresh and Chilled

Atlantic Salmon from Norway

Friday, June 29, 1990

AGENCY: Import Administratrion, International Trade Administration, Commerce.

ACTION: Notice.

SUMMARY: We preliminarily determine that benefits which constitute subsidies within the meaning of the countervailing duty law are being provided to producers or exporters in Norway of fresh and chilled Atlantic salmon, as described in the "Scope of Investigation" section of this notice. The estimated net subsidy is 0.77 Norwegian Kroner (NOK) per kilogram (2.45 percent ad valorem) for all producers or exporters in Norway of fresh and chilled Atlantic salmon. If this investigation proceeds normally, we will make a final determination on or before September 4, 1990.

EFFECTIVE DATE: June 29, 1990.

FOR FURTHER INFORMATION CONTACT:Rick Herring or Beth Graham, Office of Countervailing Investigations, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 377-3530 or 377-4105.

SUPPLEMENTARY INFORMATION:

Preliminary Determination

Based on our investigation, we preliminarily determine that certain 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 Norway of fresh and chilled Atlantic salmon. For purposes of this investigation, the following programs are preliminarily found to confer subsidies:

- Regional Development Fund Loans and Grants

*26728 -National Fishery Bank of Norway Loans

- Regional Capital Tax Incentive

- Reduced Payroll Taxes

- Advance Depreciation of Business Assets

- Government-Funded Research and Development

We preliminarily determine the estimated net subsidy to be NOK 0.77 per kilogram (2.45 percent ad valorem) for all producers or exporters in Norway of fresh and chilled Atlantic salmon.

Case History

Since the publication of the Notice of Initiation in the Federal Register (55 FR 11423, March 28, 1990), the following events have occurred. On April 3, 1990, we presented a questionnaire to the Government of Norway in Washington, DC, concerning petitioner's allegations. On May 4, 1990, we postponed the preliminary determination, at the request of petitioner, to no later than June 21, 1990, pursuant to section 703(c)(1)(A) of the Act (55 FR 19767, May 11, 1990). On May 14, 1990, we received a response to our questionnaire from the Government of Norway. On May 25, 1990, we delivered a supplemental/deficiency questionnaire to the Government of Norway. We received a response to this questionnaire on June 12, 1990.

Scope of Investigation

The United States has developed a system of tariff classification based on the international harmonized system of customs nomenclature. On January 1, 1989, the U.S. tariff schedules were fully converted to the Harmonized Tariff Schedule (HTS), as provided for in section 1201 et seq. of the Omnibus Trade and Competitiveness Act of 1988. All merchandise entered, or withdrawn from warehouse, for consumption on or after that date is now classified solely according to the appropriate HTS sub-headings. The HTS sub-headings are provided for convenience and Customs purposes. The written description remains dispositive.

The product covered by this investigation is the species Atlantic salmon (Salmo salar) marketed as specified herein; the subject merchandise excludes all other species of salmon: Danube salmon, Chinook (also called "king" or "quinnat"), Coho ("silver"), Sockeye ("redfish" or "blueback"), Humpback ("pink"), and Chum ("dog"). Atlantic salmon is a whole or nearly- white fish, typically (but not necessarily) marketed gutted, bled, and cleaned, with the head on. The subject merchandise is typically packed in fresh-water ice ("chilled"). Excluded from the subject merchandise are fillets, steaks, and other cuts of Atlantic salmon. Also excluded are frozen, canned, smoked or otherwise processed Atlantic salmon. Atlantic salmon is currently provided for under HTS sub-heading 0302.12.0002.9. Prior to January 1, 1990, Atlantic salmon was provided for under following HTS sub-headings 0302.12.0060.8 and 0302.12.0065.3. Prior to January 1, 1989, Atlantic salmon was classifiable under item 110.2045 of the Tariff Schedules of the United States Annotated.

Analysis of Programs

Due to the large number of producers and exporters of salmon in Norway, we have solicited information from the Norwegian Government on an aggregate or industry-wide basis, rather than from the individual companies involved in the production or exportation of salmon from Norway. Consequently, our subsidy calculations are based on the total amount of benefits provided to the salmon industry and the total volume of salmon sales as reported by the Government of Norway.

For purposes of this preliminary determination, the period for which we are measuring subsidies ("the review period") is calendar year 1989. This review period corresponds to the Government of Norway's fiscal year.

According to the questionnaire responses, it was not possible, given the number of producers in the country, to solicit the requested tax information from every salmon producer. Therefore, to develop information on the usage of the tax programs alleged to benefit producers of Atlantic salmon in Norway, the Government of Norway surveyed producers located in two counties: Rogaland and Nord-Trondelag. The Government of Norway stated that it believes these two counties are representative of the Atlantic salmon industry. To ensure the impartiality of the data used in this preliminary determination, we also requested that the Government of Norway survey an additional county which we selected, Troms. Tax data from salmon producers in all three counties were used as the basis for calculating the countervailable benefits conferred upon the Norwegian Atlantic salmon industry.

Our policy with respect to grants and forgiven loans is to (1) expense recurring benefits to the year of receipt, and (2) allocate nonrecurring benefits over the useful life of assets in the industry, unless the sum of grants provided under a particular program is less than 0.5 percent of a firm's total or export sales (depending on whether the program is a domestic or export subsidy). For purposes of this preliminarily determination, we have expensed all grants and forgiven loans to the review period since we have inadequate information to determine whether the programs in question provide recurring or nonrecurring benefits.

Consistent with our practice in preliminary determinations, when a response to an allegation denies the existence of a program, receipt of benefits under a program, or eligibility of a company or industry under a program, and the Department has no persuasive evidence showing that the response is incorrect, we accept the response for purposes of the preliminary determination. All such responses, however, are subject to verification. If the response cannot be supported at verification, and a program is otherwise countervailable, the program will be considered a subsidy in the final determination. Based on our analysis of the petition and the responses to our questionnaires, we preliminarily determine the following:

I. Programs Preliminarily Determined to Confer Subsidies

We preliminarily determine that subsidies are being provided to producers or exporters in Norway of fresh and chilled Atlantic salmon under the following programs:

1. Regional Development Fund Loans and Grants

The Regional Development Fund (RDF) was established in 1961 to maintain and strengthen the economic base and to increase employment in regions with low levels of economic activity. Eligibility for RDF assistance is contingent upon geographic location. Only producers or manufacturers located in underdeveloped regions of Norway are eligible for assistance.

The RDF provides loan guarantees, long-term loans and grants. Loan guarantees under the RDF are discussed in the Programs Preliminarily Determined to be Not Countervailable section of this notice. RDF loans are provided for capital investment and are made in Norwegian kroner. According to the response of the Government of Norway, the effective interest rate on outstanding loans during the review period was between 12.06 and 12.39 percent.

Loans in the amount of NOK26,240,000 to salmon producers were written off during the review period. Exclusive of those loans written off, there were outstanding loans to salmon producers for which no interest was paid during the review period.

*26729 To determine whether loans under this program were provided on terms inconsistent with commercial considerations, we selected as our benchmark the national average long-term interest rate charged by commercial banks for corporate lending. We selected a national average rate because our analysis is on an industry-wide level, rather than on a company-specific basis. We also used a corporate average borrowing rate because, according to the Government of Norway, there are no statistics available on the average cost of borrowing for the salmon industry. During 1989, the effective interest rate on long-term corporate borrowing from commercial banks was 14.9 percent. Comparing this rate to the rate charged under the RDF program, we determine that RDF loans are provided on terms inconsistent with commercial considerations.

Because loans provided under this program are limited to producers and manufacturers located only in specified regions of Norway and are provided on terms inconsistent with commercial considerations, we preliminarily determine them to be countervailable.

Since the interest charged on RDF loans is variable, we could not employ our normal long-term methodology since we cannot calculate a future benefit stream over the term of the loan. Therefore, we used our short-term loan methodology and subtracted interest paid on RDF loans in 1989 from the interest that would have been paid at the benchmark rate of 14.9 percent. The difference is the benefit conferred upon the subject merchandise during the review period.

We are treating the amount of written-off loans as a grant. To calculate the benefit from the loans to salmon producers which the Government of Norway wrote off during 1989, we took the amount written off and deducted from that total the amount of lossess recovered by RDF from settlements received in bankruptcy and estate proceedings on loans previously written off. Since we did not have the amount of recovered debts on a salmon-specific basis, we used the recovered losses on a progrm-wide basis as best information available. According to informaton from the 1989 annual report of the RDF, the program incurred losses of NOK338, 127,700 in 1989, but recovered NOK8,379,104 in losses on loans and loan guarantees previously written off. The resultant percentage of recovered losses is 2.48 percent. We applied that percentage to the amount of loans to salmon producers which were written off during the review period and subtracted the result from the total amount of written off loans to determine the amount of benefit conferred upon the subject merchandise.

To calculate the benefit for the non-payment of interest on outstanding loans, we treated the amount of interest due and an interest-free, short-term loan. We calculated the benefit in this manner since the interest payments not collected appear to be deferred, not forgiven. Therefore, we calculated the amount of outstanding interest and multiplied that amount by the national average interest rate on commercial short-term loans, which was 14.95 percent during the review period, to calculate the interest savings on those loans. The short-term interest rates for 1989 which we used in calculating the average rate for the year include not only corporate borrowing, but short-term loans to consumers as well. We are using this rate because according to the response, the 1989 average short-term rate for corporate borrowing is not yet available.

We then added: (1) The interest payment differential calculated on outstanding loans; (2) the amount of loans written off (less recovered losses) during the review period; and (3) the calculated interest savings on the loans for which no interest was collected. We divided the result by total volumne of fresh and chilled Atlantic salmon sold during the review period to calculate an estimated net subsidy of NOK 0.279 per kilogram (0.89 percent ad valorem). (The ad valorem rates cited throughout this notice have been calculated based on the total sales value of fresh and chilled Atlantic Salmon.)

The RDF also provides both investment and development grants. Investment grants may be made for the acquisition of new buildings and equipment. These grants are provided on minimum investments of NOK70,000. Business development grants are provided for surveys and planning, product development, market surveys, marketing, initiation of new business undertakings, training, and financial assistance for new enterprises. These grants are provided at a maximum of 50 percent of the external costs of the project. Both investment and business development grants were provided to salmon producers during the review period.

Because grants under the RDF are limited to producers and manufacturers located only in specified regions of Norway, we preliminarily determine them to be countervailable.

To calculate the benefit from the grants, we divided the amount of grants disbursed during the review period by total volume of fresh and chilled Atlantic salmon sold during the review period to obtain an estimated net subsidy of NOK 0.293 per kilogram (0.93 percent ad valorem). The total estimated net subsidy for RDF loans and grants is NOK 0.572 per kilkogram (1.82 percent ad valorem).



2. National Fishery Bank of Norway Loans

The National Fishery Bank of Norway (NFB) granted loans for the financing of fish farms from 1974 through 1987. On January 1, 1988, the Norwegian Bank for Industry took over the administration of new loans to the fishfarming industry. (For information on loans from the Norwegian Bank for Industry, see section II.2. of this notice.) Loans which had been granted to fishfarmers through 1987 are still administered by the NFB. The NFB provided long-term loans for investment in production equipment and buildings. The interest rates charged on outstanding loans are set by the Norwegian legislature and can vary over time. In 1989, the interest rate charged on outstanding loans under this program was set at 11.5 percent. According to the response of the Govenment of Norway, there are no other fees or charges, other than interest, associated with loans provided under this program.

In 1989, the NFB wrote off NOK824,000 in loans to salmon producers and NOK136, in interest to salmon producers. Also in that year, there were NOK13,038,386 in loans to salmon producers on which no interest was paid.

To determine whether loans under this program are provided on terms inconsistent with commercial considerations, we used the same benchmark as referred to under the Regional Development Fund program (see section I.1 of this notice). Comparing this benchmark to the interest rate on outstanding loans under this program, we find that loans under this program are provided on terms inconsistent with commercial considerations.

Because the bank's lending was limited to the fishing industry and its loans were provided on terms inconsistent with commercial considerations, we preliminarily determine the program to be counteravailable.

We calculated the benefits conferred under this program in the same manner as previously described under the Regional Development Fund program (see section I.1. of this notice). However, unlike written-off loans under the *26730 Regional Development Fund, we did not have information on the percentage of recovered losses of previously written-off loans. Therefore, we were unable to make a recovered loss adjustment on written-off loans under the NFB.

We then added: (1) The interest payment differential calculated on outstanding loans: (2) the amount of loans written off during the review period; and (3) the calculated interest savings on the loans for which no interest was collected. We divided the result by total volume of fresh and chilled Atlantic salmon sold during the review period to calculate an estimated net subsidy of NOK 0.023 per kilogram (0.07 percent ad valorem).

e. Regional Capital Tax Incentive

The aim of this program is to encourage investment in regions in northern Norway with a weak industrial base and considerable unemployment. Funds set aside by the taxpayer under this program are deducted from taxable income. These funds must then be invested in capital assets. The maximum amount allowed to be deducted is 15 percent of taxable income. The minimum amount is NOK15,000.

Within five years of setting aside a fund under this program, 100 percent of the fund must be invested. The investment must take place in assets for use in the taxpayer's own business. When setting up the fund, an amount corresponding to 400 percent of the fund must be placed in a special interest-bearing account in a local bank to secure taxes that would have to be paid on the fund in the event that the taxpayer does not meet the obligations for investment under the program. In the year when the fund is wholly or partly invested, a fixed percentage of the invested fund is to be deducted from the depreciable value of the purchased asset. The remaining part of the invested fund is tax-free provided the invested asset is kept in the taxpayers's business for a specified number of years.

Because this program is limited to taxpayers in northern Norway, we preliminarily determine the program to be counteravailable. The calculate the benefit, we took the total amount of funds deducted from taxable income by salmon producers and multiplied that amount by the tax rate of 50.8 percent to determine the amount of tax savings provided in 1989 under this program. We divided this amount by total volume of fresh and chilled Atlantic salmon sold during the review period to calculate an estimated net subsidy of NOK 0.015 per kilogram (0.05 percent ad valorem).

As is our established policy, we did not take into account the reduction of the depreciable value of purchased assets in this calculation because we consider this to be secondary tax effect. (See, for example, Final Affirmative Countervailing Duty Determination; Certain Fresh Atlantic Groundfish From Canada, 51 FR 10041, March 24, 1986.)

4. Recuced Payroll Taxes

Under the National Insurance Act, employers are liable for the payment of payroll taxes which are based on a percentage of the wages paid in the course of a year. The employer pays this tax six times a year. Since 1975, the amount of contributions have been geographically differentiated depending upon the municipality to which the employee is liable for taxes. The program is aimed at encouraging employment of persons in underdeveloped areas of Norway. In 1989, Norway was divided into four zones. The tax rates in each of the zones was 16.7 percent, 13.2 percent, 10 percent, and 2.2 percent in Zones one, two, three and four, respectively.

Because this program provides a benefit to specific regions in Norway, we preliminarily determine it to be countervailable. To calculate the benefit, we multiplied the amount of wages paid by salmon producers in Zones 2, 3, and 4 by their respective payroll tax rates. We then multiplied the wages paid in each of these zones by the payroll tax rate of 16.7 percent that would have been paid had the producers been located in Zone 1. We took the difference between the payroll taxes paid in Zones 2, 3, and 4 and the amount of payroll taxes they would have paid if they had paid the rate applicable in Zone 1. We divided the result by total volume of fresh and chilled Atlantic salmon sold during the review period to obtain an estimated net subsidy of NOK 0.155 per kilogram (0.49 percent ad valorem).

5. Advance Depreciation of Business Assets

The purpose of this program is to encourage investment in less-developed areas of Norway by allowing companies located in selected districts of the country to claim a higher rate of depreciation in the year in which capital assets are acquired. Eligible companies may claim an additional 25 or 40 percent depreciation beyond the standard rate of depreciation all companies in Norway may claim. Whether a company may claim an additional depreciation rate of 25 or 40 percent depends on the company's location. This amount of initial depreciation allows a greater part of the price of acquired assets to be deducted from taxable income in the year of acquisition.

Because only companies located in specific regions of Norway are eligible for this program, we preliminarily determine the program to be countervailable. To calculate the benefit from this program, we divided the tax savings provided under the program to salmon producers by the total volume of fresh and chilled Atlantic salmon sold during the review period to obtain an estimated net subsidy of NOK 0.002 per kilogram (0.01 percent ad valorem).

6. Government-Funded Aquaculture Research and Development

Government-funded aquaculture research primarily consists of basic research and research aimed at long-term economic development of aquaculture in Norway. Most of the companies which receive government funding manufacture goods and equipment for fishfarms both in Norway and abroad. Only a small minority of the fund recipients are fishfarmers.

There is no central agency which handles all aquaculture research and development in Norway. Government-funded research is planned, financed and performed through the following organizations: (1) research councils, (2) universities and colleges, (3) government reserach councils, (4) institutes for commissioned research, and (5) government financial institutions. Government financial institutions assist in funding developmental projects. The recipients of such grants are usually required to contribute 50 percent of the total project costs.

When the results of government-funded research and development are made public to those both within and out of the country, we find that the assistance is not countervailable (see, for example, Final Affirmative Countervailing Duty Determination: Fresh, Chilled and Frozen Pork Products from Canada, 54 FR 30774, July 24, 1989). According to the response of the Government of Norway, results of government aquaculture research are normally made publically available both in and outside Norway. There are, however, certain exceptions. During the review period, a grant was disbursed for the funding of one project involving a salmon producer in which publication of the results was not required or could be delayed for a number of years. Because the results of that research project will not be made publically available, we preliminarily determine the funding of that project to be countervailable. To calculate the benefit under this program, we took the amount of the grant *26731 disbursed during the review period and divided that amount by the total volume of fresh and chilled Atlantic salmon sold during the review period to obtain an estimated net subsidy of NOK 0.002 per kilogram (0.01 percent ad valorem).

II. Programs Preliminarily Determined to be Not Countervailable

1. Regional Development Fund Loan Guarantees

In addition to the RDF loans and grants discussed above, the RDF provides loan guarantees. Guarantees are provided for loans from commercial banks. RDF will guarantee up to a maximum of 50 percent of a loan, thus sharing the risk of the loan with the commercial bank. The RDF charges a guarantee fee of two percent per annum. According to information obtained by the Department, the granting of loan guarantees is a standard commercial practice in Norway. The fees charged for a loan guarantee vary depending on the creditworthiness of the customer but are generally in the range of one to two percent.

Because the fees charged for loan guarantees under the RDF correspond to the fees charged by commercial banks in Norway, we preliminarily determine that loan guarantees provided under the RDF are not made on terms inconsistent with commercial considerations, and thus are not countervailable.

2. Norwegian Bank for Industry Loans

The Norwegian Bank for Industry (NBI) was established in 1977 to provide medium- and long-term financing for the development, modernization and restructuring of Norwegian industry in accordance with the government's industrial policy. In 1988, the NBI began making loans to fishfarmers. The NBI provides loans to new enterprises and for the expansion and improvement of existing enterprises. The majority of shares are held by the Norwegian government. The rate of interest on loans provided under this program is based on the borrowing costs of the NBI.

According to the response of the Government of Norway, eligibility is not contingent upon export performance, geographic location or industrial sector. During the review period, loans under this program were provided throughout Norway to companies in such industries as mining, food processing, textiles, chemical, metals, shipbuilding, and paper and wood industries. Because the outstanding loans under this program are not limited to a specific enterprise or industry, or group of enterprises or industries, we preliminarily determine this program to be not countervailable.

3. Government Bank of Agriculture Loans and Grants

The Government Bank of Agriculture administers the Norwegian Fund of Development in Agriculture which was created to provide assistance in establishing supplemental income and employment for farmers. The Fund provides both long-term loans and grants to all agricultural producers.

One of the two loans provided to salmon producers during the review period was provided interest-free. The Government of Norway states that it is standard practice under the program to provide interest-free loans. Interest-free loans will be provided if it is determined that the applicant needs an interest-free loan in order to finish a project. The interest-free loan provided to the salmon farmer was provided based on the applicant's financial situation, according to the regulations of the program.

According to the response of the Government of Norway, the Fund provides loans to all agricultural producers. The Government of Norway also states that it is standard practice to provide interest-free loans under this program. Therefore, we preliminarily determine that the program is not limited to a specific enterprise or industry, or group of enterprises or industries, and not countervailable. This is consistent with our policy that agriculture constitutes more than a specific enterprise or industry, or group of enterprises or industries (see, for example, Final Affirmative Countervailing Duty Determination: Live Swine and Fresh, Chilled and Frozen Pork Products from Canada, 50 FR 25097, June 16, 1985).

III. Programs Preliminiarily Determined to be Not Used

We preliminarily determine that the following programs were not used by producers or exporters in Norway of fresh and chilled Atlantic salmon during the review period.

1. Norwegian Industrial Fund

The Norwegian Industrial Fund is a government institution established to encourage industrial growth and adaptation in order to strengthen the competitive position of Norwegian industry and tourism. The Fund is authorized to provide grants, loans, and loan guarantees. According to the response of the Government of Norway, no grants, loans, or loan guarantees were provided to producers or exporters of the subject merchandise during the review period.

2. Norwegian Central Bank Loans to Salmon Farmers

By Royal Decree of 28 October 1988, 20 licensees were allocated to farm salmon and trout in Finnmark and 10 were allocated in Nord-Troms. In addition to these licenses, the Ministry of Finance recommended a provisional arrangement by which Norges Bank, the Norwegian central bank, would extend government- guaranteed operational loans to these producers. This program took effect in 1989; however, to date, no loans have been granted or guaranteed under this arrangement.

3. Sales Promotion Assistance

The Norwegian Export Council administers a program aimed at export promotion. Funds for this activity come from the budget of the Foreign Ministry. According to the response of the Government of Norway, no disbursements were made to producers or exporters of the subject merchandise during the review period.



4. Special Tax-Free Reserves for Export Development

Under this program, exporters may set aside funds to cover expenses for market development abroad. A maximum of 20 percent of income computed for municipal income tax purposes might be set aside and deducted from income for that year. This program was designed to allow exporters to set aside profit tax-free for a few years before starting a market research and development project abroad. According to the response of the Government of Norway, no producers or exporters of the subject merchandise have used this program.

IV. Programs Preliminarily Determined to Not Exist

We preliminarily determine that the following programs do not exist or were terminated prior to the period of our review:

1. District Development Bank Loans, Loan Guarantees and Investment Grants

According to the response of the Government of Norway, there are no District Development Banks in Norway. Respondent claims that petitioner's allegation was based on a mistranslation of the Regional Development Fund. (See, section I.1. of this notice for a description of the Regional Development Fund.)

2. Norwegian Export Council Financing

According to the response, the Norwegian Export Council does not *26732 offer export financing to Norwegian companies.

3. Regional Development Fund Transport Subsidies

According to the response of the Government of Norway, prior to 1988, the RDF provided grants for the domestic transport of finished and semi-finished products of a certain processing value in accordance with a specified list of commodities. This list did not include fresh and chilled Atlantic salmon. This grant program was designed to reduce the disadvantages of long distances and poor transport facilities in certain areas.

4. Institute for the Financing of Structural Readaptation

According to the response of the Government of Norway, the Norwegian Bank for Industry has operated the programs of the Institute for the Financing of Structural Readaptation since 1977. (See, section II.2. of this notice for a description of the Norwegian Bank for Industry.)

5. Fund for Industrial Enterprises

According to the response of the Government of Norway, there is no Fund for Industrial Enterprises in Norway. Respondent believes petitioner's allegation was based on a mistranslation of the Norwegian Industrial Fund. (See, section III.1. for a description of the Norwegian Industrial Fund.)

6. State Industry Bank

According to the response of the Government of Norway, there is no State Industry Bank in Norway. Respondent believes that petitioner's allegation was based on a mistranslation of the Norwegian Bank for Industry. (See, section II.2. of this notice for a description of the Norwegian Bank for Industry.)

7. Transportation Subsidy for Salmon Farmers



According to the response, the Government of Norway does not provide any transportation subsidies to salmon farmers.

8. Exchange Rate Guarantees

According to the response, the Government of Norway does not administer any exchange rate guarantee programs.

9. Discounting of Export Bills

According to the response, the Government of Norway does not administer any program which discounts export bills.

10. Ministry of Industry Retraining Funds

According to the response, the Norwegian Ministry of Industry has no funds available to help companies meet the cost of retraining workers nor has it previously had such funds.

Verification

In accordance with section 776(b) of the Act, we will verify the information used in making our final determination.

Suspension of Liquidation

In accordance with section 703(d) of the Act, we are directing the U.S. Customs Service to suspend liquidation of all entries of fresh and chilled Atlantic salmon from Norway which are entered, or withdrawn from warehouse, for consumption, on or after the date of publication of this notice in the Federal Register and to require a cash desposit or bond for all entries of this merchandise equal to NOK 0.77 per kilogram. This suspension will remain in effect until further notice.

ITC Notification

In accordance with section 703(f) of the Act, we will notify the ITC (International Trade Commission) of our determination. In addition, we are making available to the ITC all non-privileged and non-proprietary information relating to this investigation. We will allow the ITC access to all privileged and business proprietary information in our files, provided the ITC confirms that it will not disclose such information, either publicly or under an administrative protective order, without the written consent of the Deputy Assistant Secretary for Investigations, Import Administration.

If our final determination is affirmative, the ITC will make its final determination within 45 days after the Department makes its final determination.

Public Comment

In accordance with 19 CFR 355.38 of the Commerce Department's regulations, we will hold a public hearing, if requested, on August 23, 1990, at 2 p.m. in room 3708, to afford interested parties an opportunity to comment on this preliminary determination. Interested parties who wish to request or to participate in the hearing must submit a request within ten days of the publication of this notice in the Federal Register to the Assistant Secretary for Import Administration, U.S. Department of Commerce, room B-099, 14th Street and Constitution Avenue, NW., Washington, DC 20230.

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, ten copies of the business proprietary version and five copies of the non-proprietary version of the case briefs must be submitted to the Assistant Secretary no later than August 16, 1990. Ten copies of the business proprietary version and five copies of the non-proprietary version of rebuttal briefs must be submitted to the Assistant Secretary no later than August 21, 1990. An interested party may make an affirmative presentation only on arguments included in that party's case or rebuttal brief. Written argument should be submitted in accordance with section 355.38 of the Commerce Department's regulations and will be considered if received within the time limits specified in this notice.

This determination is published pursuant to section 703(f) of the Act (19 U.S.C. 1671b(f)).

Dated: June 21, 1990.

Francis J. Sailer,

Acting Assistant Secretary for Import Administration.

[FR Doc. 90-15077 Filed 6-28-90; 8:45 am]

BILLING CODE 3510-DS-M

55 FR 26727-01

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