NOTICES
DEPARTMENT OF COMMERCE
[C-559-001]
Certain Refrigeration Compressors From the Republic of Singapore,
Preliminary
Results of Countervailing Duty; Administrative Review
Tuesday, May 22, 1990
*21069
AGENCY: International Trade Administration/Import
Administration, Commerce.
ACTION: Notice of preliminary results of countervailing duty
administrative reviews.
SUMMARY: The Department of Commerce has conducted two
administrative reviews of the agreement suspending the
countervailing duty investigation on certain refrigeration
compressors from the Republic of Singapore. We preliminarily
determine that the signatories have complied with the terms of the
suspension agreement during the periods January 1, 1986 through
December 31, 1986, and January 1, 1987 through March 31, 1988. We
invite interested parties to comment on these preliminary results.
EFFECTIVE DATE: May 22, 1990.
FOR FURTHER INFORMATION CONTACT: Megan Pilaroscia or
Barbara Williams, Office of Agreements Compliance, International
Trade Administration, U.S. Department of Commerce,
Washington, DC 20230; telephone: (202) 377-3793.
SUPPLEMENTARY INFORMATION:
Background
On November 7, 1983, the Department of Commerce ("the
Department") published in the Federal Register (48 FR 51167) a
notice of suspension of countervailing duty investigation
regarding certain refrigeration compressors from the Republic of
Singapore. On November 9, 1987, and as amended on November 17,
1987, the Department published a notice of "Opportunity to Request
Administrative Review" (52 FR 43095; 52 FR 43929) of this case. On
November 30, 1987, the petitioner, Tecumseh Products Company,
and the respondents, Matsushita Refrigeration Industries (Singapore)
Pte. Ltd. (MARIS) and Matsushita Electric Trading (Singapore) Pte.
Ltd. (METOS), currently known as Asia Matsushita Electric
(Singapore) Pte. Ltd., requested an administrative review of the
suspension agreement (52 FR 47617). We initiated the fourth review,
covering the period January 1, 1986 through December 31, 1986, on
December 15, 1987. On October 31, 1988, the Department published a
notice of "Opportunity to Request Administrative Review" (53 FR
43913) for the following period, and on November 15, 1988, the
petitioner requested an administrative review (54 FR 4871) of that
period. We initiated the fifth review, covering the period January 1,
1987 through March 31, 1988, on January 31, 1989. The Department
has now conducted these administrative reviews in accordance with
section 751 of the Tariff Act of 1930 ("the Tariff Act").
Scope of Review
The United States, under the auspices of the Customs Cooperation
Council, has developed a system of tariff classification based on the
international harmonized system of Customs nomenclature. On
January 1, 1989, the United States 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
item number(s).
Imports covered by these reviews are shipments of Singaporean
hermetic refrigeration compressors rated not over one-quarter
horsepower. During the review periods, such merchandise was
classifiable under item number 661.0900 of the Tariff Schedules of
the United States Annotated. This merchandise is currently
classifiable under HTS item number 8414.30.40.
The reviews cover one producer and one exporter of the subject
merchandise. These two companies, along with the Government of
Singapore, are the signatories to the suspension agreement. The
reviews cover the periods January 1, 1986 through December 31,
1986, and January 1, 1987 through March 31, 1988, and five
programs.
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Analysis of Programs
(1) The Economic Expansion Incentives Act--Part IV
Part IV of the Economic Expansion Incentives Act allows a 90
percent tax exemption on a company's profits if the company is
designated as an export enterprise. MARIS is so designated and used
this tax exemption during the periods of review.
MARIS exports only refrigeration compressors, all of them through
METOS. To calculate the benefit, for each review period we divided
MARIS' tax savings from the program by the f.o.b. value of METOS'
total exports of MARIS' refrigeration compressors. On this basis, we
preliminarily determine the benefit from this program, during the
first period reviewed, to be 4.23 percent of the f.o.b. value of the
merchandise, and 2.06 percent in the following period of review.
(2) Financing Through the Monetary Authority of Singapore
The suspension agreement prohibits MARIS and METOS from
applying for or receiving any financing provided by the rediscount
facility of the Monetary Authority of Singapore for shipments of the
subject refrigeration compressors to the United States. We
determined that neither the signatory producer nor exporter
received any financing through the Monetary Authority on the
subject compressors exported to the United States during the
review periods. Therefore, we preliminarily determine that both
companies have complied with this clause of the agreement.
(3) Other Programs
Petitioner requests that the Department review possible benefits
conferred by the Government of Singapore to MARIS under the
following programs: the Skills Development Fund, the Public Utilities
Board Surcharge Exemption, and the technical assistance fee
withholding tax exemptions. The Department has examined these
programs in prior reviews and determined that they were not
countervailable (50 FR 30493, July 26, 1985; 53 FR 25647, July 8,
1988). We have received no new information to indicate that these
programs confer countervailable benefits on MARIS.
Preliminary Results of Review
As a result of our review, we preliminarily determine that the
signatories have complied with the terms of the suspension
agreement, including the payment of the provisional export charge
for both periods. From January 1, 1986 through January 9, 1987, a
provisional export charge rate of 4.92 percent was in effect, and from
January 9, 1987 through March 1988, a rate of 8.35 percent was in
effect. We also preliminarily determine the net bounty or grant to be
4.23 percent of the f.o.b. value of the merchandise for the January 1,
1986 through December 31, 1986 review period and 2.06 percent of
the f.o.b. value of the merchandise for the January 1, 1987 through
March 31, 1988 review period. The suspension agreement states that
the Government of Singapore will offset completely with an export
charge the net bounty or grant calculated by the Department.
Following the methodology outlined in section B.4 of the agreement,
the Department preliminarily determines that, for the period January
1, 1986 through December 31, 1986, and the period January 1, 1987
through March 31, 1988, a negative adjustment may be made to the
provisional export charges in effect. These rates, established in the
notices of the final results of the first and second administrative
reviews of the suspension agreement (50 FR 30493, July 26, 1985; 52
FR 848, January 9, 1987), are 4.92 percent and 8.35 percent,
respectively. For both periods, the Government of Singapore may
refund the difference to the companies.
The Department intends to notify the Government of Singapore that
the provisional export charge on all exports to the United States with
Outward Declarations filed on or after the date of publication of the
final results of this administrative review shall be 2.06 percent of the
f.o.b. value of the merchandise.
The agreement can remain in force only as long as shipments from the
signatories account for at least 85 percent of imports of the subject
Singaporean refrigeration compressors into the United States. Our
information indicates that the two signatory companies accounted for
100 percent of imports into the United States of this merchandise
during the review periods.
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
after the date of publication. Any hearing, if requested, will be held 35
days after the date of publication or the first workday following. Any
request for an administrative protective order must 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 19 CFR 355.22.
Dated: May 15, 1990.
Eric I. Garfinkel,
Assistant Secretary for Import Administration.
[FR Doc. 90-11873 Filed 5-21-90; 8:45 am]
BILLING CODE 3510-DS-M