[Federal Register: December 13, 2001 (Volume 66, Number 240)]
[Page 64398-64399]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-489-806]
Certain Pasta From Turkey: Final Results of Countervailing Duty
Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of final results of countervailing duty administrative
review.
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SUMMARY: The Department is issuing the final results of the first
administrative review of the countervailing duty order on pasta from
Turkey.
EFFECTIVE DATE: December 13, 2001.
FURTHER INFORMATION CONTACT: Annika O'Hara or Melanie Brown, Office of
AD/CVD Enforcement 1, Import Administration, U.S. Department of
Commerce, Room 3099, 14th Street and Constitution Avenue, NW.,
Washington, DC 20230; telephone: (202) 482-3798 and (202) 482-4987,
respectively.
SUPPLEMENTARY INFORMATION:
Applicable Statute and Regulations
Unless otherwise indicated, all citations to the Tariff Act of
1930, as amended (``the Act''), are references to the provisions
effective January 1, 1995, the effective date of the amendments made to
the Act by the Uruguay Round Agreements Act (``URAA''). In addition,
unless otherwise indicated, all citations to the Department of
Commerce's (``the Department'') regulations are to 19 CFR part 351
(April 2000).
Background
On July 24, 1996, the Department published in the Federal Register
(61 FR 38546) the countervailing duty order on certain pasta from
Turkey.
In accordance with 19 CFR 351.213(b), this review of the order
covers the following producers or exporters of the subject merchandise
for which a review was specifically requested: Filiz Gida Sanayi ve
Ticaret A.S. (``Filiz''), Beslen Makarna Gida Sanayi ve Ticaret A.S.
and Beslen Pazarlama Gida Sanayi ve Ticaret A.S. (``Beslen''),
Pastavilla Makarnacilik Sanayi ve Ticaret A.S. (``Pastavilla''), and
Maktas Makarnacilik ve Ticaret A.S. (``Maktas'').
Since the publication of the preliminary results (see Certain Pasta
from Turkey: Preliminary Results of Countervailing Duty Administrative
Review, 66 FR 41553 (August 8, 2001)), the following events have
occurred: On October 11, 2001, the Department issued a third
supplemental questionnaire to Pastavilla, Maktas, and the Government of
Turkey. Responses were received between October 19 and October 23,
2001. On October 31, 2001, Maktas submitted a case brief. No rebuttal
briefs were submitted and we received no requests for a hearing.
Scope of Order
Covered by the order are shipments of certain non-egg dry pasta in
packages of five pounds (2.27 kilograms) or less, whether or not
enriched or fortified or containing milk or other optional ingredients
such as chopped vegetables, vegetable purees, milk, gluten, diastases,
vitamins, coloring and flavorings, and up to two percent egg white. The
pasta covered by this order is typically sold in the retail market, in
fiberboard or cardboard cartons or polyethylene or polypropylene bags,
of varying dimensions.
Excluded from the order are refrigerated, frozen, or canned pastas,
as well as all forms of egg pasta, with the exception of non-egg dry
pasta containing up to two percent egg white.
The merchandise under review is currently classifiable under
subheading 1902.19.20 of the Harmonized Tariff Schedule of the United
States (``HTSUS''). Although the HTSUS subheading is provided for
convenience and customs purposes, our written description of the scope
of the order is dispositive.
Scope Ruling
To date, the Department has issued the following scope ruling:
On October 26, 1998, the Department self-initiated a scope inquiry
to determine whether a package weighing over five pounds as a result of
allowable industry tolerances may be within the scope of the
countervailing duty order. On May 24, 1999, we issued a final scope
ruling finding that, effective October 26, 1998, pasta in packages
weighing or labeled up to (and including) five pounds four ounces is
within the scope of the countervailing duty order. (See May 24, 1999
memorandum from John Brinkman to Richard Moreland, which is on file in
the Central Records Unit (``CRU'') in Room B-099 of the main Commerce
building.)
Period of Review
The period of review (``POR'') for which we are measuring subsidies
is from January 1, 1999 through December 31, 1999.
Analysis of Comments Received
All issues raised in the case by parties to this administrative
review are addressed in the December 6, 2001 Issues and Decision
Memorandum from Richard Moreland, Deputy Assistant Secretary for Import
Administration, to Bernard Carreau, Acting Assistant Secretary for
Import Administration (``Decision Memorandum''), which is hereby
adopted by this notice. Only one interested party, Maktas, filed a case
brief. No parties filed rebuttal briefs. The only issue raised by
Maktas concerned the calculation of the benefit conferred by the
Resource Utilization Support Fund (``KKDF'') tax exemption program.
Parties can find a complete discussion of this issue and the
corresponding recommendation in the public Decision Memorandum which is
on file in the CRU. In addition, a complete version of the memorandum
can be accessed directly on the Internet at https://enforcement.trade.gov/frn/
under the heading ``Turkey.'' The paper copy and electronic version of
the Decision Memorandum are identical in content.
Changes Since the Preliminary Results
In the preliminary results, we found a program called ``Exemption
from KKDF, BIST, and Stamp Taxes on Export-related Loans'' to provide
countervailable benefits. In addition to being countervailed as a
separate tax program under this heading, the benefit from these tax
exemptions was added to the benefit conveyed by preferential interest
rates on pre-shipment export loans in order to capture the total
[[Page 64399]]
benefit from these loans. Based upon the comment received and further
review of the questionnaire responses, we have made three changes
related to this program since the preliminary results: (1) We have
found the exemption from stamp taxes to be not countervailable; (2) we
have analyzed the KKDF and the BIST (Banking and Insurance
Transactions) tax exemptions as two separate programs; and (3) we have
changed the benefit calculation methodology for the KKDF and BIST tax
exemptions on certain loans. These changes are discussed in further
detail in the relevant sections of the Decision Memorandum.
Final Results of Review
In accordance with 19 CFR 351.221(b)(4)(i), we calculated an
individual subsidy rate for each producer/exporter subject to this
administrative review. For the period January 1, 1999 through December
31, 1999, we determine the net subsidy rates for producers/exporters
under review to be those specified in the chart shown below.
------------------------------------------------------------------------
Ad valorem
Company rate
(percent)
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Beslen Makarna Gida Sanayi ve Ticaret A.S. and Beslen 0.00
Pazarlama Gida Sanayi ve Ticaret A.S......................
Filiz Gida Sanayi ve Ticaret A.S........................... 0.00
Maktas Makarnacilik ve Ticaret A.S......................... 6.52
Pastavilla Makarnacilik Sanayi ve Ticaret A.S.............. 1.73
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We will instruct the Customs Service (``Customs'') to assess
countervailing duties as indicated above. The Department will also
instruct Customs to collect cash deposits of estimated countervailing
duties in the percentages detailed above of the f.o.b. invoice prices
on all shipments of the subject merchandise from the producers/
exporters under review, entered, or withdrawn from warehouse, for
consumption on or after the date of publication of the final results of
this administrative review.
The cash deposit rates for all companies not covered by this review
are not changed by the results of this review. Thus, we will instruct
Customs to continue to collect cash deposits for non-reviewed
companies. Accordingly, the cash deposit rates that will be applied to
non-reviewed companies covered by this order are those established in
the Notice of Countervailing Duty Order: Certain Pasta (``Pasta'') from
Turkey, 61 FR 38546 (July 24, 1996), which provides the most recently
published countervailing duty rates for companies not reviewed in this
administrative review. These rates shall apply to all non-reviewed
companies until a review of a company assigned these rates is
completed. In addition, for the period January 1, 1999 through December
31, 1999, the assessment rates applicable to all non-reviewed companies
covered by these orders are the cash deposit rates in effect at the
time of entry.
Return or Destruction of Proprietary Information
This notice serves as a reminder to parties subject to
administrative protective order (``APO'') of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of return or destruction of APO materials or conversion to
judicial protective order is hereby requested. Failure to comply with
the regulations and the terms of an APO is a sanctionable violation.
This administrative review and notice are in accordance with
section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)).
Dated: December 6, 2001.
Bernard Carreau,
Acting Assistant Secretary for Import Administration.
[FR Doc. 01-30823 Filed 12-12-01; 8:45 am]
BILLING CODE 3510-DS-P